Australian banks Westpac and ANZ have agreed to refund a total of more than A$21m ($16.4m) to multiple credit card customers after the country’s Securities and Investments Commission (ASIC) raised concerns over their practices.
After ASIC alleged that Westpac has been incorrectly rising credit card limit, the bank agreed in 2016 to improve the lending practices while performing limit increases by better considering income and employment status of the customer.
Following its own review into the situation, the bank has remediated approximately A$11.3m, including A$8.3m waived in credit card balances, to about 3,400 customers.
ANZ will also refund A$10.2m to 52,135 business credit card accounts for failing to provide correct information on fees and applicable interest rates.
The bank reported to ASIC that it has failed to disclose or incorrectly informed annual fee, interest-free period, overseas transaction fees and the amount payable for overseas transactions to the holders of its Business One credit card.