ASIC sues ANZ (ASX:ANZ) on failed discount waivers

The Australian Securities and Investments Commission (ASIC) has started a civil penalty proceeding relating to benefits including the fee waivers and discounts not being applied under ANZ’s (ASX:ANZ) break fee package, as well as system errors impacting offset account calculations.

The proceeding primarily relates to issues raised during an ANZ case study at the 2018 Royal Commission into Misconduct in the Banking Superannuation and Financial Services Industry.

ASIC is alleging contraventions of certain misleading or deceptive conduct provisions of the ASIC Act and breaches of the general obligations owed by financial services licensees under the Corporations Act, including as a result of not all applicable benefits being applied under the Breakfree package, including home loan, transaction account and credit card fee waivers, home loan interest rate discounts, and optional additional benefits such as discounts on insurance premiums, and system errors affecting the calculation of offset benefits in certain circumstances, including where customers made payments into their offset accounts on weekends or non-business days.

ANZ has contacted customers impacted to remediate the situation with payments issued.

Shares in ANZ Bank (ASX:ANZ) is trading flat at $27.65.