Hamish Fletcher

Business reporter for the NZ Herald

Kiwibank class action deadline looms

Locally-owned Kiwibank is the second to be targeted by the Fair Play on fees group over alleged unfair penalty fees. Photo / Dean Purcell.
Locally-owned Kiwibank is the second to be targeted by the Fair Play on fees group over alleged unfair penalty fees. Photo / Dean Purcell.

Kiwibank customers have until tonight to sign up to class-action style litigation over allegedly "unfair penalty" fees.

Almost 7000 Kiwibank customers have signed up to the action so far and those who want to be involved have until midnight to do so.

The Fair Play on fees group, fronted by Auckland lawyer Andrew Hooker, have taken action against Kiwibank over penalty fees.

The locally-owned bank is the second to be targeted by the group, the first being ANZ.

The representative action alleges the default fees charged by the banks in situations such as unarranged overdrafts, bounced cheques and late over-limit credit card fees are "unenforceable penalties" and should be paid back to customers.

"While we'd like to represent everyone who has been charged these fees, the lack of a class action regime in New Zealand means that people need to sign up if they want receive any compensation through the case," Hooker said in a statement yesterday.

The New Zealand legal action is being run on a "no win no fee" basis, which means no upfront costs. People can join the lawsuit by registering at: www.fairplayonfees.co.nz

- NZ Herald

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