A very interesting action being brought by 34,000 customers over the charging of dishonour fees and over limit and late payment fees. Probably all of us have been touched by this at some time.
The lawyers are saying that, while it is ok for banks to recoup the cost of addressing default issues, the law does not allow for penalties to be applied. The common $35 fee is seen as having a penalty component. "We say each of those types of fees are extravagant or exorbitant and customers should be recompensed for the amounts they've paid" said prosecuting lawyers.
ANZ, on the other hand, say they are not penalties but fees associated with services. The matter is not expected to be resolved before 2012.