The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court of Australia against the Australian and New Zealand Banking Group Limited.
The ACCC alleges that the ANZ Bank in seeking to limit the level of refund Mortgage Refunds could provide to customers in respect of ANZ home loans, has breached section 45 of the Trade Practices Act 1974.
Mortgage Refunds was a mortgage broker which refunded to its customers a part of the commission it received from lending institutions. The ACCC alleges that the ANZ Bank sought to reach an agreement with Mortgage Refunds to limit its refunds to customers as a condition of it continuing to deal with the bank.
The ACCC is seeking:
- a declaration that the ANZ Bank contravened the price fixing provisions of the Trade Practices Act 1974
- an injunction to restrain the ANZ Bank from entering into similar arrangements
- penalties for its conduct, and
- an order for costs.