Federal Court declares ANZ late fees illegal

A recent ruling by a federal court can cost major banks as much as $55 million in fees for excessive late fee charges on their credit cards.

Involved in the class action are 38,000 customers claiming that ANZ overcharged them in their late fees. According to Bentham IMF, the firm funding the lawsuit, the true cost to banks for late fees only amount to $3. ANZ charges $35 for late payments.

Other fees are also in question, and this court declaration is just a partial victory for customers. Other charges that were overdrawn from customer accounts were allowed under the law.

Read more about this on the Age website.