Class action against nz banks (banking stocks)

[NZSilver]

On stuff this morning

NZ banks to face fee class action
Last updated 10:52 11/03/2013

A group of law firms is poised to launch a default fee class action against New Zealand banks this afternoon.

Details are scant but media have been invited to a 1pm press conference in Auckland.

''Over the past six years, New Zealand banks have collectively charged their customers more than $1 billion in default fees. These fees occur when customers overdraw their account, pay their credit card too late or bounce a cheque, the invitation said.

''Today, three of Australasia's largest legal firms will announce class action against New Zealand's major banks to reclaim these fees. This action is expected to be the largest class action in New Zealand's history.''

More to come

[NZSilver]

Interesting to see which banks...

[CJ]

These fees occur when customers overdraw their account, pay their credit card too late or bounce a cheque, the invitation said.Doesn't effect me.

Only short paid by credit card once (by accident short paid by about $5). Called the bank and they reversed the $55+ interest charged.

However, for some people this will be of real benefit.

Q. If banks didn't charge this fee (or reduced it) where would they make up the profit? Would interest rate margins have to change to compensate? Would monthly bank fees have to increase?

Could this class action, if successful, actually make me worse off? On the back of getting told off for my "greed is good" post, I thought I should be concerned with only my own self interest. ;)

[blobbles]

I don't get it. Charging these fees is clear in their terms when you sign up for an account so how can there be any wrong doing? I understand there is a law saying no unreasonable fees can be charged but I am sure there are a million ways the banks could claim the fees are reasonable.

[Arbitrage]

At least Heartland Bank shouldn't be implicated.

[lissica]

I signed up to the Australian class action by being run by IMF. It was almost 3yrs ago now...progress has been slow. It might be good for a few hundred to a couple of thousand bucks if they win.

I own both ANZ and WBC, I'm a customer of the former, but doesn't stop me suing my shareholdings :-b

[fungus pudding]

I don't get it. Charging these fees is clear in their terms when you sign up for an account so how can there be any wrong doing? I understand there is a law saying no unreasonable fees can be charged but I am sure there are a million ways the banks could claim the fees are reasonable.

I agree. I don't think I'd moan about paying a fee if I was outside of any agreed limit. Isn't that what the terms of the account allow?

[skid]

We were with HSBC[until we payed off the mortgage] once we were not premier customers they started charging us $50 month for our acounts--we're talking savings -checking etc.
I wasnt to keen on being involved with the closest thing we have to a big corrupt merchant bank anyway--so I dropped them like a hot potato
They are as bad as it gets in NZ in my opinion
Since then the whole money laundering thing in Mexico has come out.
These are the kind of banks that created this whole mess in the first place.
I hope they have a good hard look at them

[biker]

Sometimes I think we as customers are our own worst enemy. If some fee inducing threshold is crossed but not habitual, a phone call requesting the fee be reversed will normally have the desired result. At least with Kiwi Bank, and some time ago, BNZ.
A mild threat to move elsewhere can be an added incentive.
I think more and more we need to challenge what has become accepted business/bureaucratic practice in many areas. ( and I think it extends to, amongst others, political, medical and law enforcement areas as well.)
The 'add ons' are very profitable and banks, airlines, junk food outlets etc will all take our money if we let them have it.

[Vaygor1]

Quite right Biker. Banks normally do reverse the charges when asked. For a good customer, they'd be mad not to.

Mind you, here is a copy/paste of a post of mine in the RYM thread from a couple of months back, so the thought of bank charges has obviously been on my mind lately. It gave me a chuckle writing it.

In a non New Zealand owned bank:

Teller "Good Afternoon Sir/Madam."
Customer "Good Afternoon."
Teller "How can I help?"
Customer "Well, you seem to have an enormous range of fees that appear in my account every day."
Teller "Well, we waive all fees if you retain more than 20 quadrillion dollars worth of business with us."
Customer "Sorry, I'm not the Sultan of Brunei.... Can you provide me a list of all your fees please?"
Teller "No problems at all. That'll be $17 thanks."