Australia and New Zealand Banking Group (ANZ) has signed a settlement deal with Commerce Commission to pay NZ$29.4m ($18.4m) to customers affected by loan calculator issue.

The bank identified a coding error in its loan payment calculator between May 2015 and 2016.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Customers have been charged incorrect interest amounts on their loans due to the miscalculations that arose from the error.

The bank admitted that it failed to take necessary care required of a responsible lender when it provided loan variation information to more than 100,000 customers.

The bank has already paid nearly NZ$6m ($3.7m) to affected customers in 2018.

The Commission investigated the error and obtained a further NZD$29.4m ($18.4m) for the affected customers.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

It is said to be the Commission’s largest settlement with a single bank.

Under the terms of the deal, ANZ admitted being responsible for breaching its lending obligations in the high court proceedings.

The Commission is set to seek a high court declaration stating that the bank’s conduct breached the Credit Contracts and Consumer Finance Act (CCCF Act).

Under the act, every lender must exercise the care, diligence and skill of a responsible lender in all initial and subsequent dealings with borrowers.

In May 2018, ANZ confirmed that due to a coding error in its loan calculator, it miscalculated the interest amounts on loans.

The issue affected personal and home loan customers who agreed with the bank to vary their loans.

ANZ had reported the issue to the Commission in 2017.