ComCom takes ANZ subsidiary to court over fees

CEO says the company takes compliance “very seriously”

ComCom takes ANZ subsidiary to court over fees

ANZ subsidiary UDC Finance is “assessing its options” following the Commerce Commission’s notice of civil proceedings.

The proceedings were initiated last week with regards to UDC’s charging of dishonour and late payment fees. The process will seek to determine whether the fees meet the requirements for default fees under the Credit Contracts and Consumer Finance Act (CCCFA).

The Commission’s claim relates to late payment fees charged from June 2015.

UDC CEO Wayne Percival says he believes the fees charged were fair and reasonable, and says UDC will attempt to reach an agreement with the Commission to resolve the issue.

“The Commission’s proceeding does not challenge the categories of costs that UDC has sought to recover in its late payment fees,” Percival explained. “Instead, the issue raised by the Commission relates to the way in which UDC averages costs across borrowers, and whether separate averages should be calculated by reference to differing periods of default.

“Following a long and open dialogue, the Commission is now looking to the courts for a declaration on the matter. UDC believes its fees fairly and reasonably recover the underlying costs it incurs, and that the law allows it to charge the fees on the basis that it does.”

Percival says the UDC takes compliance “very seriously,” and regularly reviews its fee structures to ensure that it is compliant with the CCCFA. He also says that the Commerce Commission has only taken issue with historic charges between 2015 – 2016, and has not raised any concerns regarding UDC’s current fee structures.

UDC is a wholly-owned subsidiary of ANZ providing car loans, asset finance and investments. ANZ has planned to sell UDC to the HNA Group earlier in 2017, but the deal fell through as a result of the Overseas Investment Office declining the acquisition.

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