Commerce Commission clears 4 banks in break fee investigation, still looking at 3 more
30th Apr 09, 2:55pm
New Zealand's Commerce Commission has cleared ASB, SBS, BNZ and the National Bank from wrongdoing regarding mortgage break fees, completing the first part of its investigation into the break fees charged by banks. However, investigations into break fees charged by ANZ, Kiwibank and Westpac will continue, the Commission said. "The Commission has completed its investigation into the fees charged by the ASB, SBS Bank, BNZ and National Bank. These four banks all charge break fees based on the movement in retail interest rates," the Commission's fair trading manager Graham Gill said. "It is the Commission's opinion that the formulae used by these banks are likely to be appropriate under the Act and the Commission will be taking no further action against these banks in relation to these formulae. However, the Commission's investigation into the break fees charged by ANZ, Kiwibank and Westpac will continue," Gill said. The Commission has been investigating break fees charged by banks to ensure that the fees comply with both the Credit Contracts and Consumer Finance, and Fair Trading Acts.