Provided by NZX
  • ANZ30.38

    $0.290.95%

  • Open 30.09 High 30.38 Low 29.9 Bid Price 30.2

    Offer Price 30.4 Value 429328.54 Volume 14234

Current as of 25/05/17 07:40PM NZST
Sophie Ryan is online editor for the Business Herald

Farmers seek $7.5m from ANZ

Banks sold swaps to hundreds of rural borrowers last decade until the Commerce Commission launched an investigation into the practice. Photo / File
Banks sold swaps to hundreds of rural borrowers last decade until the Commerce Commission launched an investigation into the practice. Photo / File

Taranaki farmers Stephen and Sharon Coomey are seeking $7.5 million from ANZ after they bought controversial financial products from the bank.

The Coomeys, trustees of Eltham farm trusts Bushline Trust One and Two, are one of three separate High Court claims against the country's largest bank related to interest-rate swaps after a probe was launched by the Commerce Commission in 2012.

Banks sold swaps to hundreds of rural borrowers last decade and after the commission signalled that it intended to take court action, ANZ, ASB and Westpac all reached deals with the regulator and made narrow admissions that some of the behaviour over the swaps was misleading to some customers.

The settlements resulted in about $24.5 million going back to some affected rural customers and also their communities via charities.

ANZ paid $18.5m and was singled out by the commission for its behaviour, which a judge said breached the Fair Trading Act.

The Bushline Trusts trustees are seeking $1.9m in swap payments from ANZ and $5.6m for losses in farming operations.

ANZ is defending a similar case brought by Cygnet Farms, a company owned by Taranaki couple Craig and Lisa Swan.

That claim seeks to recover $1.24 million that the company allegedly lost as a result of entering into interest-rate swaps.

ANZ is defending the action, which accuses the bank of negligence and misrepresentation.

An ANZ spokesperson said in July it would be defending the three separate claims.

- NZ Herald

Get the news delivered straight to your inbox

Receive the day’s news, sport and entertainment in our daily email newsletter

SIGN UP NOW

© Copyright 2017, NZME. Publishing Limited

Assembled by: (static) on production bpcf03 at 26 May 2017 01:18:53 Processing Time: 462ms