Australian regulator sues ANZ over credit card balances

Australia's securities regulator sued Australia and New Zealand Banking Group Ltd., or ANZ, in the Federal Court for allegedly misleading its customers on the available funds and balances in their credit card accounts.

The Australian Securities and Investments Commission alleged that between May 2016 and November 2018, the lender charged customers cash advance fees and interest for withdrawing or transferring money from credit card accounts based on an incorrect account balance.

While the alleged misconduct is the result of system errors within ANZ, the bank allegedly did not fix the issues and customers continued to be affected. The regulator is seeking remediation for customers who have been wrongly charged since 2018.

In a same-day release, ANZ acknowledged the civil penalty proceeding initiated by the regulator, but said it will not be providing further comment as the case is now in court.