Citibank to face court over $40 fees

Four more banks will have to respond to class actions over penalty fees on common bank accounts. Law firm Maurice Blackburn said on Friday that it had begun proceedings against Citibank, Commonwealth Bank, National Australia Bank and Westpac. ANZ is already defending an action that commenced 14 months ago. Two weeks ago, a Federal Court judge ruled in favour of ANZ on legal issues in that case, which is in relation to 13 out of 17 contested fees.

But the judge did find that four fee types, which may represent around a third of A$50 million claimed from ANZ, were penalties. A second trial on other aspects of the case will take place next year.

IMF (Australia), the litigation funder financing the action managed by Maurice Blackburn, has said it will seek leave to appeal directly to the High Court on the ANZ ruling.

Maurice Blackburn said that Citibank continues to charge penalty fees of $40 in some instances. According to the firm, these fees are “way beyond any reasonable estimate of cost.”

Source: Banking Day

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