Bank fees class action claims against other banks unlikely to go ahead
Class actions filed against six other banks over fees are unlikely to proceed, following the High Court's ruling in the ANZ case.Since 2010, when the first class action was launched against ANZ, claims have been filed against Commonwealth Bank, Westpac, National Australia Bank, Citibank, St George Bank, BankSA and Bankwest.NAB settled its case earlier this year, agreeing to compensation reported to be A$6.6 million.Yesterday the High Court rejected an appeal against a Full Federal Court ruling that late payment fees charged by ANZ on credit card accounts were not unenforceable as penalties. It also rejected an appeal against the Full Federal Court's ruling that the imposition of late payment fees did not contravene statutory prohibitions against unconscionable conduct and unfair contract terms.At a media briefing after the High Court judgment was handed down, Maurice Blackburn Lawyers national head of class actions Andrew Watson said: "Looking at the reasoning that has been adopted by the High Court, it looks as though the cases which are still extant would be subject to the same kind of reasoning."They've been stayed pending the outcome of this case and based on the preliminary reading that I've had of the judgment, it looks to me as though the reasoning of this judgment will apply to those cases."Over the next few weeks we'll be digesting the judgment properly. Then we'll be discussing the outcome of those cases with the other banks."Watson said NAB customers would still be entitled to receive the outcome of that settlement.Litigation funder IMF Bentham, which funded the class actions, put out a statement yesterday saying the impairment value and adverse cost provisioning for the ANZ case and the other cases would reduce its net profit for the 2016 financial year by no more than $9.5 million.