ANZ Slammed for Overcharging Deceased Estates

4

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

Clear

ASIC Cracks Down on Risky Financial Influences 12 Jun 2025: Paige Estritori The Australian Securities and Investments Commission (ASIC) has issued warnings to 18 social media influencers actively promoting high-risk financial products without the necessary licence. The move is part of a broader initiative to curb unlicensed financial advice in the online sphere, where influencers often lure young audiences with glamorous lifestyles while dispensing questionable investment tips. ASIC has identified these so-called 'finfluencers' as operating in breech of the Corporations Act by promoting complex financial products like derivatives without proper authorisation. - read more

ASIC Introduces 2-Year Fast-Track IPO Trial to Boost Market Appeal 11 Jun 2025: Paige Estritori The Australian Securities and Investments Commission (ASIC) has responded to stakeholder feedback by initiating a two-year trial of a fast-track process for Initial Public Offerings (IPOs). This initiative aims to address the decline in Australian IPOs and the number of public companies by making the IPO process more efficient. - read more

Intergenerational Wealth Transfer: A Prime Opportunity for Australian Advisers 11 Jun 2025: Paige Estritori Recent findings from EY's Global Wealth Research report highlight a significant opportunity for financial advisers in Australia as a large-scale intergenerational wealth transfer looms. With only 35% of Australians planning to retain their inherited assets in their existing forms, there is a noticeable shift towards diversification, with 51% intending to spread their investments across various asset classes. This trend opens the door for advisers to engage deeply with new inheritors, ensuring client retention across generations. - read more

RBA Poised for July Rate Cut Amid Economic Slowdown 11 Jun 2025: Paige Estritori The Reserve Bank of Australia (RBA) is widely expected to cut the official cash rate (OCR) at its upcoming July meeting. According to Westpac, the probability of this decision has reached an overwhelming 97% in financial markets. - read more