Bike Loans Australia :: News
SHARE

Share this news item!

ANZ Slammed for Overcharging Deceased Estates

ANZ Slammed for Overcharging Deceased Estates

ANZ Slammed for Overcharging Deceased Estates?w=400
Australia and New Zealand Banking Group (ANZ) has come under intense scrutiny for a grave oversight: charging fees to the estates of deceased customers.
This makes ANZ the second of Australia's Big Four banks to face formal action from the Banking Code Compliance Committee (BCCC) within a single week.

The BCCC's accusations are centered on ANZ's failure to cease or refund fees charged to deceased customers' estates in a timely manner. The committee also noted that ANZ did not respond to inquiries or instructions from the representatives of these estates within the 14-day period mandated by the 2019 Banking Code of Practice.

The violations, spanning more than four years from July 2019 to September 2023, involved ANZ's inability to quantify the extent to which it was in breach of these code obligations. The bank has since committed to remediating $3.25 million to around 19,000 affected estates.

This action against ANZ follows closely on the heels of a similar sanction imposed on Westpac for its poor handling of a regional branch closure. According to the BCCC, another unnamed bank was given a formal warning for similar issues, though the financial impact and number of affected estates were significantly lower.

The BCCC listed several reasons for its stringent action against ANZ:

  1. ANZ's inability to accurately monitor and report the 14-day obligation breaches.
  2. Delayed internal measures to prevent additional breaches after an audit in September 2022.
  3. Slow response in addressing customer issues identified back in February 2022, with remediation expected to be completed only by July 2024.
  4. Delays in responding to estate representatives, exacerbating the emotional and logistical burdens on bereaved families.

Significantly, the BCCC highlighted that in June 2023, ANZ introduced an automated tool to waive fees upon receiving death notifications. However, this measure came more than a year after the initial problem identification.

The committee pointed out that more than 7,000 delayed cases are awaiting resolution, each requiring manual review to identify potential breaches. ANZ plans to send approximately 10,604 apology letters and pay financial compensation totaling around $667,915 to affected representatives.

BCCC Chair Ian Govey expressed considerable concern over ANZ's Code breaches, describing them as intensely problematic and warranting the severe sanctions imposed. Govey criticized ANZ’s slow remediation process, saying it "did not meet expectations" and that the bank "should have done more to address this more quickly."

The sanction stems from a 2023 inquiry by the BCCC into banks' adherence to the deceased estates provisions in the Banking Code of Practice, implemented to ensure institutions follow best practices in handling such sensitive matters.

Last week, financial regulator ASIC approved updates to the Banking Code that include revised steps for securing accounts following customer deaths. These changes are slated to take effect after 28 February 2025.

This evolving regulatory landscape underscores the importance of timely and compassionate handling of financial matters for deceased estates, an area where ANZ has evidently fallen short.

Published:Thursday, 4th Jul 2024
Source: Paige Estritori

Share this news item:

Finance News

Increasing Number of Qualified Financial Advisers Opt Out of Practice Increasing Number of Qualified Financial Advisers Opt Out of Practice
11 Jul 2025: Paige Estritori

Recent analysis from WealthData indicates a growing trend among financial advisers in Australia, where a significant portion of those who have successfully passed the financial adviser exam are opting not to practice. As of now, 5,096 individuals, representing 33.31% of active advisers, have chosen not to proceed into practice after passing the exam—up from 28.36% a year prior. - read more
Melbourne's Housing Market: A Prime Opportunity For Buyers Melbourne's Housing Market: A Prime Opportunity For Buyers
11 Jul 2025: Paige Estritori

The Reserve Bank of Australia (RBA) recently surprised many by maintaining the interest rate at 3.85%, against expectations of a cut. This decision is seen as a measure to continue moderating inflation, but it simultaneously delays potential spikes in the housing market, providing a favorable window for prospective homebuyers. In particular, Melbourne's current market presents significant value, offering a promising opportunity for those looking to enter the property market. - read more
Improving EOFY Planning: The Call for ATO Portal Access for Advisers Improving EOFY Planning: The Call for ATO Portal Access for Advisers
09 Jul 2025: Paige Estritori

In a recent discussion, James O'Reilly, Director and Financial Planner at Northeast Wealth, underscored the benefits that could come from granting financial advisers access to the Australian Taxation Office (ATO) portal. Speaking on The ifa Show, O'Reilly proposed that this access would significantly simplify the services financial advisers provide to clients, particularly at tax time and the end of the financial year (EOFY). - read more
RBA Holds Rates Steady, Shocking Markets and Shifting Economic Expectations RBA Holds Rates Steady, Shocking Markets and Shifting Economic Expectations
09 Jul 2025: Paige Estritori

The Reserve Bank of Australia (RBA) has decided to keep the official cash rate steady at 3.85%, taking many by surprise after expectations of a 25-basis-point cut had built up in financial circles. This unexpected move comes amid recent data indicating easing inflation and weaker than anticipated economic growth, conflicting with prior predictions of a cut. - read more


Bike Loans Articles

Leverage Your Credit Score: Get the Best Motorcycle Loan Deals Leverage Your Credit Score: Get the Best Motorcycle Loan Deals
Are you dreaming of hitting the open road on a brand-new motorcycle, but unsure about the financial leap it requires? Navigating the world of motorcycle loans can initially seem daunting, but understanding how to secure a favourable deal is crucial. - read more
Top Tips for First-Time Motorcycle Buyers in Australia Top Tips for First-Time Motorcycle Buyers in Australia
Welcome to the exhilarating world of motorcycle riding! Whether you're attracted by the sense of freedom, the adventure, or the efficiency motorcycles offer, joining the community of riders is an exciting step. However, purchasing your first motorcycle can be a daunting experience. - read more
Beginner's Guide to Motorbike Maintenance: Tips and Tricks Beginner's Guide to Motorbike Maintenance: Tips and Tricks
Regular maintenance is crucial for ensuring the longevity and safety of your motorbike. Neglecting maintenance can result in a host of problems that can put your safety at risk and lead to costly repairs down the line. By performing routine maintenance, you can prevent problems before they arise and keep your motorbike running smoothly. - read more
What to Look for in a Motorcycle Loan Agreement What to Look for in a Motorcycle Loan Agreement
Are you ready to hit the open road on a brand-new motorcycle but unsure how to finance it? You're not alone. Many Australians dream of owning a motorcycle, yet navigating the sea of financing options can feel like tackling a hairpin turn. - read more
The Pros and Cons of Secured vs Unsecured Motorcycle Loans The Pros and Cons of Secured vs Unsecured Motorcycle Loans
When it comes to hitting the open road on a new motorcycle in Australia, securing the right loan can significantly impact your financial journey. Motorcycle loans are an essential tool that can help you purchase your dream machine. However, understanding how to navigate these loans can make a world of difference in both your purchase process and your long-term financial health. - read more
How to Improve Your Credit Score Before Applying for a Motorcycle Loan How to Improve Your Credit Score Before Applying for a Motorcycle Loan
A credit score is a numerical representation of an individual's creditworthiness based on their financial history, payment habits, and level of existing debt. It plays a crucial role in determining loan eligibility and interest rates for various financing options, including motorcycle loans. - read more
Financing Your First Motorcycle: Tips for Australian Riders Financing Your First Motorcycle: Tips for Australian Riders
Securing a motorcycle loan is a significant step for many Australians who dream of hitting the open road on two wheels. Not only does it provide personal freedom, but it also offers a sense of adventure and independence that’s hard to match. - read more
5 Essential Tips for Comparing Motorcycle Loans Without Harming Your Credit Score 5 Essential Tips for Comparing Motorcycle Loans Without Harming Your Credit Score
When you're in the market for a new motorcycle, the thrill of choosing your next ride can be temporarily overshadowed by the financing process. Your credit score is a critical factor in securing a loan with favorable terms, and it's natural to worry about potential impacts while shopping around for the best deal. - read more


Start Here

START HERE.

Loan Amount:
Postcode:

Knowledgebase
Interest Coverage Ratio:
A measure of a company's ability to make interest payments on its debt, calculated as EBIT divided by interest expense.