Stuff | 21 November 2021
Written by Rob Stock
In June 2015, the National government led by Sir John Key created the law that would be used this year to launch a class action lawsuit against ANZ by home loan borrowers.
Key, ANZ’s current chairman, was at the helm when section 99(1A) of the Consumer Credit Contracts and Finance Act (CCCFA) came into force as part of a drive to get lower tier lenders to treat vulnerable borrowers decently.
The clause required lenders to refund all costs of borrowing, meaning fees and interest charged, during a period in which they were in breach of loan disclosure laws designed to ensure borrowers were fully informed about their loans.
But in May 2016, ANZ realised it had made errors in loan variation letters sent to thousands of customers between May 2015 and May 2016 potentially leaving it on the hook to pay a large sum to those borrowers.
To read the full article in Stuff, click here: https://www.stuff.co.nz/business/126888209/how-banks-tried-to-shut-down-multimillion-dollar-legal-threat-but-failed