ANZ gears up as long running legal battle over legal fees comes to a head

ANZ is preparing for the conclusion this week of a long running legal battle over bank fees as the High Court hears a final appeal from lawyers representing ANZ customers in a multimillion dollar class action against the bank; this case is being watched closely by banking and legal circles as legal action against seven other big banks, including Westpac and the Commonwealth Bank, which could be worth hundreds of millions of dollars, hinges on the result of the case. The debate rests on whether the bank imposed unfair penalties when it charged customers up to $35 for being late paying their credit card bill; ANZ has maintained the fees were legal. 

A long-running legal battle over bank fees will soon come to a head, with the High Court this week hearing a final appeal in a multimillion dollar class action against ANZ Bank.

In a case being watched closely in banking and legal circles, lawyers representing ANZ customers will this week appeal against last year's ruling from the full bench of the Federal Court that ANZ Bank's credit card late payment fees were legitimate.

The federal court last year overturned a previous ruling that fees charged by ANZ were an illegal penalty. Credit: Jim Rice

At the heart of the debate – which will determine the fate of class actions against seven other banks – is whether ANZ imposed unfair penalties when it charged customers up to $35 for being late paying their credit card bill.

A 2014 ruling from Justice Michelle Gordon, who is now a High Court judge, found the fees were unfair penalties because they easily exceeded the 50c to $5.50 cost to the bank of a customer paying late.