ANZ New Zealand, the country's biggest bank, has admitted making misleading representations in the provision of credit card repayment insurance to some customers, the Financial Markets Authority (FMA) says.
This, the FMA says, is in breach the Financial Markets Conduct Act with a hearing to determine the penalty held at the High Court at Auckland on Friday.
"The admissions were made as part of a resolution reached between the FMA and ANZ of proceedings that the FMA filed in June 2020. The FMA had alleged ANZ charged certain customers for credit card repayment insurance policies that offered no cover or benefit," the FMA says.
"The FMA claimed that ANZ breaches section 22 of the Financial Markets Conduct Act by making false and misleading representations about the cover conferred by certain policies. The FMA proceedings sought both a pecuniary penalty of $280,000 and declarations of contravention."
"These are the first civil proceedings the FMA has brought under the fair-dealing provisions in part 2 of the Financial Markets Conduct Act . The FMA is now awaiting the decision of the Court and will comment after it is issued," the FMA says.
An ANZ spokesman says the bank is awaiting the Court's decision and will comment after it's issued.
"We stopped selling credit card repayment insurance in 2019," the ANZ spokesman says.