Half a million tipped to join class action on bank fees
By Lexi Metherell and Shane McLeod
Up to 500,000 people are expected to join a class action against local and foreign banks for repayment of dishonour and late fees.
Official figures show the banks collected nearly $1.2 billion in such fees in the 2008 financial year. The money came from honour and dishonour fees on bank accounts, and over-limit and late fees on credit cards.
Financial Redress, a subsidiary of litigation funder IMF, is funding the litigation against 12 banks who it says have illegally charged well over $5 billion over the last six years.
The case will be based on the claim that the fees are illegal because they amount to a penalty rather than a legitimate fee.