ANZ has lost a High Court battle over a class action tied to disclosure breaches under the Credit Contracts and Consumer Finance Act, with the High Court ruling the bank failed to meet its legal obligations despite customers being slightly undercharged due to a system error between 2015 and 2016.
The case affects around 17,000 borrowers, and while ANZ had already compensated customers and self-reported the issue, the court found the errors materially impacted loan information and borrower decision-making.
The judgment means ANZ must refund borrowing costs for affected customers, with immediate repayments ordered for the lead plaintiffs and total potential liability estimated at up to $125 million.
The bank is now considering an appeal.
