Commerce Commission fines BNZ $5 million
{{date|July 18, 2006}}
{{New Zealand}}

The [[w:New Zealand|New Zealand]] [[w:State sector organisations in New Zealand#Crown Entities|Commerce Commission]] has fined the [[w:Bank of New Zealand|Bank of New Zealand]] (BNZ). It has been forced to pay [[w:New Zealand dollar|NZ$]]5 million in compensation to its customers, $500,000 in fines and $80,000 in costs to the Commerce Commission. The money will be placed into a bank account to be monitored by an [[w:auditor|auditor]], and if there is any money left over it will be donated to a consumer organization.

BNZ has been forced to pay these fines for failing to disclose that they were charging their customers for the exchange of foreign currency during February, 2002 until May, 2004 on its credit and debit cards, which is a breach of the Fair Trading Act. They pleaded guilty to 21 counts of breaching the act. The BNZ say that they will contact their affected customers and that they should get their compensation by November this year. The bank is responsible for contacting all their customers.

The BNZ is the third bank to be charged, the two others were [[w:ANZ Bank|ANZ]] and the [[w:National Bank of New Zealand|National Bank]], which were charged $11.325 million combined as they had since become a single company. 

There are still other ongoing prosecutions on these other financial services: [[w:Westpac|Westpac]], [[w:ASB Bank|ASB]], [[w:Taranaki Savings Bank|TSB]], [[w:American Express|American Express]], [[w:Diners Club|Diners Club]] and [[w:The Warehouse Group|The Warehouse Financial Services]]. The Commission would not comment on these cases.
{{original}}
Paula Rebsotck, Commerce Commission Chairperson, said "the result was a victory for New Zealand consumers, many of whom would have unknowingly paid the currency transaction charges. While fees like these remain hidden, banks have no incentive to offer lower fees."

==Sources==
*{{source|url=http://www.comcom.govt.nz//MediaCentre/MediaReleases/200607/bnzpleadsguiltyovercardfees5millio.aspx
|title=BNZ pleads guilty over card fees: $5 million in compensation, $550,000 fine
|author=Commerce Commission|pub=Commerce Commission|date=July 18, 2006}}
*{{source|url=http://www.bnz.co.nz/binaries/mr180706.pdf
|title=Bank of New Zealand Settles with Commerce Commission on Card Fees
|author=|pub=Bank of New Zealand|date=July 18, 2006}}

{{Publish}}
{{Archived}}
[[Category:New Zealand]]
[[category:Oceania]]
[[category:Crime and law]]
[[category:Economy and business]]
[[Category:Westpac]]
The New Zealand Commerce Commission has fined the Bank of New Zealand (BNZ). It has been forced to pay NZ$5 million in compensation to its customers, $500,000 in fines and $80,000 in costs to the Commerce Commission. The money will be placed into a bank account to be monitored by an auditor, and if there is any money left over it will be donated to a consumer organization.

BNZ has been forced to pay these fines for failing to disclose that they were charging their customers for the exchange of foreign currency during February, 2002 until May, 2004 on its credit and debit cards, which is a breach of the Fair Trading Act. They pleaded guilty to 21 counts of breaching the act. The BNZ say that they will contact their affected customers and that they should get their compensation by November this year. The bank is responsible for contacting all their customers.

The BNZ is the third bank to be charged, the two others were ANZ and the National Bank, which were charged $11.325 million combined as they had since become a single company. 

There are still other ongoing prosecutions on these other financial services: Westpac, ASB, TSB, American Express, Diners Club and The Warehouse Financial Services. The Commission would not comment on these cases.

Paula Rebsotck, Commerce Commission Chairperson, said "the result was a victory for New Zealand consumers, many of whom would have unknowingly paid the currency transaction charges. While fees like these remain hidden, banks have no incentive to offer lower fees."
New Zealand Westpac