ANZ New Zealand has admitted that it breached the Financial Markets Conduct Act 2013 (FMCA) by misleading some customers over credit card insurance charges.
New Zealand’s financial watchdog said that the ANZ admitted to breaching certain laws by misleading representations it made in the supply of credit card repayment insurance (CCRI) to certain bank customers.
The admissions follow the resolution agreed between the Financial Markets Authority (FMA) and ANZ of proceedings that the regulator filed in June last year.
The regulator alleged that the bank charged some customers for CCRI policies that offered no cover or benefit.
ANZ breached section 22 of the act by making false and deceptive representations about the cover provided by certain policies.
The FMA proceedings sought both a pecuniary penalty of $280,000 and declarations of contravention at a hearing held at the High Court at Auckland to determine the penalty.
The regulator said that it is now awaiting the decision of the court and will comment on the topic after the court order is issued.
In July 2019, New Zealand’s commerce commission filed a lawsuit against the local arm of Westpac for failing to disclose certain terms to credit card customers.