The Australian Competition and Consumer Commission (ACCC) has instituted
proceedings in the Federal Court of Australia against the Australian
and New Zealand Banking Group Limited (ANZ Bank).
The ACCC alleges that the ANZ Bank in seeking to limit the level of
refund Mortgage Refunds could provide to customers in respect of ANZ
home loans, has breached section 45 of the Trade Practices Act 1974.
Mortgage Refunds was a mortgage broker which refunded to its
customers a part of the commission it received from lending
institutions. The ACCC alleges that the ANZ Bank sought to reach an
agreement with Mortgage Refunds to limit its refunds to customers as a
condition of it continuing to deal with the bank.
The ACCC is seeking:
- a declaration that the ANZ Bank contravened the price fixing provisions of the Trade Practices Act 1974
- an injunction to restrain the ANZ Bank from entering into similar arrangements
- penalties for its conduct, and
- an order for costs.
According to The Age it is believed the ACCC will produce a letter in which ANZ
demands Mortgage Refunds cap its discount at $500.
According to The Age, ANZ called the ACCC’s case "ill-conceived and
misplaced in law".
"ANZ as a lender and Mortgage Refunds as a broker are not
competitors," the bank said in in a statement.
"Brokers are an important and valued channel for ANZ. The
provisions in the Trade Practices Act relied upon by the ACCC are
not applicable — ANZ’s conduct is vertical in nature, not
horizontal between competitors."
