Action group Fair Play on Fees has settled with ANZ on the legal proceedings related to certain fees charged by the bank.
According to a statement from law firm Bell Gully, ANZ made a contribution to Fair Play on Fees' costs and does not admit any liability.
The claims against ANZ will be withdrawn, the statement says.
ANZ, the country's biggest lender, was named as the first bank facing a class action suit over an estimated $250 million fees charged to customers for going into overdraft, late credit card payments and bouncing cheques.
The lawyer who fronted Fair Play on Fees, Andrew Hooker, hit a hitch when a similar case in Australia ruled in favour of ANZ.
At the time he said he would continue the action against ANZ.
"You can't expect to take ground-breaking cases for consumers and give up at the first hiccup," he said.
All parties involved in the New Zealand action agreed to put the case on hold pending the decision of the Australian court.
Fair Play on Fees also filed an action against Kiwibank.
Hooker has previously said he would also go after Westpac, ASB and BNZ.
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.
Andrew Hooker has been approached for comment but was yet to reply at time of publication.