Australian banks face record A$5bln class action
Customers claim fees excessive; NBA up against CDO claims
Commonwealth Bank: Australia’s biggest bank is playing catch-up
Ten of Australia’s biggest banks, led by the Big Four – National Australia Bank, Westpac, Commonwealth Bank of Australia and ANZ – are confronted with the prospect of the biggest class action in Australian legal history. Perth firm Financial Redress, a subsidiary of the Sydney-listed legal services company IMF Australia, which specializes in funding large-scale legal actions, has emerged as the backer of a A$5 billion ($4.2 billion) attack on the Australian banking industry, claiming recidivist overcharging of customers for penalty fees on their overdrafts and credit card debt.
Financial Redress reckons it stands on solid ground. Last year, the Reserve Bank of Australia issued data that showed that banks earned about A$1.2