ASIC has announced that Australia and New Zealand Banking Group (ANZ) is refunding around 25,000 customers approximately $5 million after it self-reported that it failed to properly apply some fee reductions and fee waivers (include late payment fees) for customers who held an ANZ Access Basic account and who also held an ANZ consumer credit card or ANZ Everyday Visa Debit Card since 2007.

According to ASIC the failure arose as a result of breakdowns in the interaction between automated and manual processes, and in particular, the lack of reliability of some manual processes and controls. ANZ has implemented a permanent automated solution with a system-based automated waiver, eliminating the need for manual intervention.

The fees included over limit and late payment fees on consumer credit cards and overdrawn fees on Everyday Visa Debit cards.

The refunds to affected customers also include an additional amount of interest. Some customers’ refunds include a component to cover the overpayment of credit card insurance premiums resulting from the impact of these errors on their account balances.

An Access Basic account is specifically designed for low income consumers who are unable to pay high fees.