Amex last to own up to fee breaches

The New Zealand Commerce Commission yesterday wrapped up its prosecution of most of the country's credit card providers over undisclosed fees between 2002 and 2004.

The NZCC said American Express International (NZ) has become the ninth financial institution to plead guilty to breaching the Fair Trading Act by failing to properly disclose its currency conversion fees. The NZCC said Amex pleaded guilty to five charges, was fined NZ$250,000 and agreed to pay NZ$1.3 million in compensation to affected customers. Amex will also pay NZ$80,000 in costs to the commission.

The commission said its actions - which convicted nine financial institutions over a couple of years - obtained more than NZ$24 million in compensation to customers and cost the offenders another NZ$5 million in fines and costs.