ANZ and CommBank set to avoid hundreds of millions of dollars in payouts
Banking majors Commonwealth Bank and ANZ are set to avoid hundreds of millions of dollars in potential payouts after the New Zealand government moved to retrospectively change lending laws, impacting a major class action.
The conservative government led by Christopher Luxon (pictured) introduced legislation that would give courts broad discretion to reduce or deny compensation for home loan disclosure breaches, a shift that could collapse a long-running lawsuit filed by Russell van Hout.
The case alleges ANZ and CommBank’s ASB Bank subsidiary failed to meet disclosure obligations between 2015 and 2019, affecting 170,000 customers.
According to reports, NZ officials voiced concerns that the claim could have the “potential to reduce access to credit and reduce competition in the market, which ultimately affects consumers”.
Timeline of Key Events:
- 2015-2019: Alleged disclosure failures occur at ANZ and ASB
- 2016: New Zealand Commerce Commission begins investigation
- 2020: ANZ compensates over 100,000 customers $35 million; ASB pays $8 million to 73,000 customers
- 2024: Russell van Hout files large-scale legal action seeking additional compensation
- April 2025: NZ government warns of risks to credit access; proposes new legislation
Lawyers argue the damages could have easily reached "hundreds of millions" under existing laws, which penalised full interest and fees paid on non-compliant loans.
The New Zealand Banking Association, which has lobbied for change since 2015, welcomed the move. In comments shared with MPA, chief executive Roger Beaumont said: “Our members welcome the proposed amendments to the CCCFA. The amendments will bring helpful clarification and certainty to a confusing law.
“It is important to note that consumers will still be protected, and lenders will still be appropriately held to account once the law is amended. Consumers and regulators can continue to bring CCCFA claims before the courts.
“The changes simply confirm that, if a lender fails to meet their obligations, the courts can decide what is a ‘just and equitable’ outcome for that failure.”
CommBank declined to provide additional comment. MPA has also reached out to ANZ for a statement.
