Source: ASB
ASB has agreed to pay $135,625,000 to settle a class action against the bank for alleged breaches of the Credit Contracts and Consumer Finance Act (CCCFA).
The class action relates to disclosure documents that ASB was required to provide to customers who had requested changes to their lending arrangements between 2015 and 2019 and whether one potential interpretation of the CCCFA legislation was the correct one.
CEO Vittoria Shortt says, “The settlement brings to an end four years of legal proceedings and provides certainty for us and for our customers. The agreement we’ve come to is a pragmatic way to settle this matter.”
“We continue to strongly support the CCCFA Amendment Bill currently before Parliament’s Finance and Expenditure Select Committee, which will bring clarity to this confusing piece of legislation.”
As part of the settlement, ASB makes no admission of liability or wrongdoing.
The settlement is subject to approval by the High Court. The Court process may take several months. ASB and the plaintiffs will seek directions from the Court on the process for communicating with class members about the settlement. At this stage class members don’t need to do anything and will receive further information in due course.
