ANZ Slammed for Overcharging Deceased Estates

4

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

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

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Clear

RBA Holds Cash Rate Steady Amid Inflationary Pressures

08 Dec 2025: Paige Estritori

The Reserve Bank of Australia (RBA) is anticipated to maintain its cash rate at 3.60% during the upcoming December 9 meeting, with projections indicating this rate will persist through 2026. This outlook marks a shift from earlier expectations of potential rate cuts in 2026, influenced by higher-than-expected inflation and a robust economic environment. - read more

APRA Implements New Cap on High DTI Home Loans

08 Dec 2025: Paige Estritori

In response to escalating property prices and accelerated credit growth, the Australian Prudential Regulation Authority (APRA) has announced a new regulatory measure to cap high debt-to-income (DTI) home loans. Effective February 2026, banks and authorized institutions will be restricted to issuing no more than 20% of new home loans with DTI ratios of six times or higher. - read more

ASIC Highlights Concerns in Rapidly Growing Private Lending Sector

08 Dec 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has conducted a comprehensive review of the private lending sector, revealing significant inconsistencies and deficiencies. This scrutiny comes in response to the sector's rapid growth, with private credit extending approximately $200 billion in loans, primarily to higher-risk real estate players and property developers. - read more

APRA's New Cap on High DTI Home Loans: What Borrowers Need to Know

30 Nov 2025: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at mitigating risks in the housing market. Effective February 2026, APRA will implement a cap on high debt-to-income (DTI) home loans, limiting banks to issuing no more than 20% of new home loans with DTI ratios of six times or higher. This measure applies to both owner-occupier and investor loans, excluding new housing developments. - read more

CBA's Profit Marginally Up Despite Intense Mortgage Market Competition

30 Nov 2025: Paige Estritori

The Commonwealth Bank of Australia (CBA), the nation's largest lender, has reported a modest increase in its first-quarter cash profit, driven by robust growth in home loans and household deposits. The unaudited cash profit for the quarter reached approximately A$2.6 billion, marking a 1% rise from the previous two-quarter average and a 2% increase compared to the same period last year. - read more

Click for more Finance News