Australia’s ANZ to pay A$42m to settle consumer credit insurance lawsuit

AUSTRALIA and New Zealand Banking Group on Monday said it would contribute A$42 million (S$38.5 million) to settle a class action lawsuit brought by law firm Slater & Gordon in 2020 over the sale of three consumer credit insurance products.

The class action was filed against ANZ, QBE Insurance Australia, OnePath Life, and OnePath General Insurance alleging that the entities made customers believe their policy payments were “compulsory or provided value to them”, according to the law firm’s website.

The allegations also included misleading or deceptive conduct in selling or issuing policies with no value, and in respect to ANZ only, providing inappropriate personal advice to customers.

ANZ said the settlement contribution is covered by a provision held as of Sept 30. In its fiscal 2022 results announced in late October, ANZ said it had a collective provision balance of A$3.85 billion at the end of September.

QBE Insurance, and OnePath Life and OnePath General Insurance, which are indirectly held by Swiss firm Zurich Insurance Group, did not immediately respond to a Reuters request for comment. REUTERS