Action group Fair Play on Fees has reached a settlement with Kiwibank following its ANZ Bank settlement in October.
The organisation, fronted by lawyer Andrew Hooker, launched legal action on behalf of tens of thousands of bank customers in 2013.
"Fair Play on Fees and Kiwibank reached a negotiated settlement of the representative action relating to certain fees. Kiwibank does not admit any liability and all claims against it will be withdrawn. Details of the settlement are otherwise confidential," Fair Play on Fees said in a brief statement.
A spokesperson for Kiwibank would not elaborate on the terms, but confirmed a settlement had been reached.
The cases relate to the default fees charged by the banks in situations such as unarranged overdrafts, bounced cheques and late over-limit credit card fees, alleging they are "unenforceable penalties" and should be paid back to customers.
Since it was launched, Fair Play on Fees has filed against ANZ New Zealand, Kiwibank, Westpac New Zealand and BNZ. The group also said it had plans to file against ASB Bank.