Australia and New Zealand Banking Group
(ASX:ANZ) says it will appeal a Federal Court decision last month that it charged ‘ extravagant, exorbitant and unconscionable’ late payment fees on credit cards.
The ruling has said that the late payment fees of up to $35 charged by the bank were illegal. However the judge allowed that four other types of fees were legitimate.
ANZ also plans to challenge the court’s dismissal of the statue of limitations on claims which would limit how far back fees could be recovered.
The appeal, if successful, could save the bank millions of dollars. The case is being closely watched, not only by banking groups but also other service providers that charge late fees, such as telecommunications companies and utilities.
ANZ Bank made a net profit of over $6 billion dollars for the half year ending September 30, 2013
