ANZ didn't pay interest to 'tens of thousands of customers'
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- ANZ has agreed to pay $240 million in penalties for four seperate misconduct cases.
- It is alleged the bank falsely advertised interest rates on savings account products including the Online Saver.
- Over 26,000 customers missed out on about $480,000 worth of interest.
Between August 2024 and March 2025, ANZ promoted variable and bonus fixed introductory interest rates on savings account rates that ASIC alleges were inaccurate.
Both the landing page and a 'cross sell' product offer page displayed inaccurate rates throughout the specified period.
For example, on the cross sell page the bonus 'fixed introductory rate' on the Online Saver retail account was advertised at 3.65% p.a. from 27 August until 17 March when the bank recognised the mistake.
In reality that bonus rate was 2.15% p.a. until 12 September and then 2.25% p.a. thereafter.
ANZ failed to pay enough interest to 26,917 customers, with about $480,000 worth not paid out.
Australia's fourth largest bank intends to remediate these customers, as well as pay a $40 million fine.
ASIC additionally alleges between July 2013 and January 2024 'process deficiencies' meant bonus interest was not always applied, with nearly 200,000 affected accounts already repaid.
The charge is one of four levelled against ANZ by ASIC, with both parties agreeing the bank will pay total penalties of $240 million.
ANZ has accepted wrongdoing, with CEO Nuno Matos calling the failings "simply not good enough".
"It is my expectation that we see measurable improvements across the bank to better protect and care for our customers," Mr Matos said.
What were the falsely advertised rates?
The inaccurate rate issue applied to the ANZ Online Saver product, a retail savings account.
On the 'cross sell page', accessible through several different pages on the ANZ website, the following inaccurate rates were displayed:
| Date Advertised | Advertised base variable rate | Actual base variable rate | Advertised bonus fixed introductory rate | Actual bonus fixed introductory rate |
|---|---|---|---|---|
| 27 August 2024 to 12 September 2024 | 1.50% | 1.50% | 3.65% | 2.15% |
| 13 September 2024 to 27 February 2025 | 1.50% | 1.40% | 3.65% | 2.25% |
| 28 February 2025 to 17 March 2025 | 1.50% | 1.15% | 3.65% | 2.25% |
Figures from the ASIC Federal Court Submission
And on the landing page for the product itself:
| Date Advertised | Advertised base variable rate | Actual base variable rate | Advertised bonus fixed introductory rate | Actual bonus fixed introductory rate |
|---|---|---|---|---|
| 13 September 2024 to 27 February 2025 | 1.50% | 1.40% | 2.15% | 2.25% |
| 28 February 2025 to 17 March 2025 | 1.50% | 1.15% | 2.15% | 2.25% |
Figures from the ASIC Federal Court Submission
Just after the issue was rectified, the introductory rate on the Online Saver was discontinued.
What are the other cases of misconduct?
The three other misconduct proceedings are as follows:
- ANZ 'Acted unconscionably' in its dealings with the Australian Government whilst managing a $14 billion bond deal and overstated bond trading volumes by tens of billions of dollars over two years. ANZ will pay the Government the $85 million it earned as 'duration manager' for the bond deal, as well as a $40 million fine for inaccurate reporting.
- Its home lending team failed to respond to hundreds of customer hardship notices, in some cases for up to two years, for which it was fined another $40 million.
- It also failed to return fees charged to thousands of dead customers, and not responding to loved ones dealing with deceased estates within the required timeframe. That fine was $35 million.
Is anyone still owed money?
Mr Matos said the "remediation programs" are already in place to reimburse customers affected by the issue.
In the ASIC court submission dated 12 September, it said ANZ completed remediation payments to potentially impacted customers on 15 August.
Mr Matos said the bank will be making changes to better support customers.
"It's clear we have issues within Australia Retail, particularly around our management of non-financial risk," he said.
ANZ will be submitting a 'Root Cause Remediation Plan' to APRA on 30 September, and has confirmed it intends to spend $150 million implementing the plan to make sure these mistakes don't happen again.