The Financial Markets Authority (FMA) is seeking a $280,000 penalty against ANZ New Zealand after the banking giant admitted to misleading customers about credit card repayment insurance (CCRI).
ANZ admitted to breaching the Financial Markets Conduct (FMC) Act for misleading representations over credit card insurance charges as part of a resolution reached between the FMA and the bank from proceedings filed in June 2020.
The FMA had alleged that ANZ “charged certain customers for CCRI policies that offered no cover or benefit,” which it claimed was in breach of section 22 of the FMC Act by “making false and misleading representations about the cover conferred by certain policies.”
A hearing to determine the penalty was held at the High Court at Auckland on Friday, with the FMA seeking both “a pecuniary penalty of $280,000 and declarations of contravention.”
These are the first civil proceedings the FMA has brought under the fair-dealing provisions in part two of the FMC Act. The FMA said it is now awaiting the decision of the court and will comment after it is issued.
ANZ spokesperson Stefan Herrick told stuff.co.nz that the bank is also “awaiting the decision of the court and will comment after it is issued,” adding that ANZ “stopped selling credit card repayment insurance in 2019.”