Aussie banks face class action
Share prices of the “Big Four” banks tumbled just after midday today following the release of a statement by IMF (Australia) Limited saying the company proposes to fund claims by bank customers for repayment of exception fees deducted from their accounts over the last six years by local and foreign banks. IMF said the claims would relate to honour fees and dishonour fees on bank accounts and over limit and late payment fees on credit card accounts.
The company said the Reserve Bank of Australia has reported that banks charged exception fees of almost $1.2 billion in FY08, while no figures are available before 2008.
IMF said recent exemptions granted by the Australian Securities and Investments Commission have permitted these class actions to proceed without being registered as managed investment schemes.
The company said its subsidiary Financial Redress Pty Ltd would be responsible for organising each class action.
As at 1251 AEST, IMF shares were up 3.5c to $1.47.
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