Australian lender ANZ Group Holdings has announced it has agreed to pay a combined total of A$99m (£50.54m) to settle two class action lawsuits filed against it in 2020, according to a Reuters report.
The settlements, covering cases related to car loan commission practices and superannuation fees, remain subject to court approval.
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The first lawsuit involved car loans arranged under ANZ’s credit licence from 2011 to March 2016. The class action alleged that ANZ paid “flex commissions” to accredited car dealers, which allowed dealers to set interest rates and terms on car loans independently. Under these arrangements, higher interest rates and longer loan terms generated larger commissions for dealers.
This practice was banned by Australia’s securities regulator, ASIC, in November 2018. ANZ has agreed to settle the car loan case with a payment of A$85 million.
The second lawsuit was brought on behalf of members holding ANZ and former OnePath superannuation products, alleging breaches of trustee duties by charging excessive fees and paying unnecessary commissions to financial advisers. To settle this case, ANZ will pay A$14 million.
ANZ stated that the settlements do not constitute admissions of liability.
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