"The ANZ Bank announced today that up to 25,000 ANZ customers who bought lenders' mortgage insurance between September 1999 and June 2000 are to receive a full refund of the GST collected", Australian Competition and Consumer Commission Chairman, Professor Allan Fels, said today.
"These customers will, on average, receive $140 plus interest.
"In addition, up to 12,000 ANZ customers who were made Letters of Offer prior to 30 June 2000 and bought lenders' mortgage insurance on loans settled after 30 June will receive a partial refund of the GST collected.
"ANZ is refunding more than $5 million to customers following a private legal ruling from the Australian Taxation Office.
"ANZ is to be congratulated for its pro-active approach in seeking the ATO's advice to clarify the GST-taxable position of its lenders' mortgage insurance and for moving to refund customers on the basis of the advice.
"The ACCC encourages other businesses to act as the ANZ did in this matter. ANZ took the initiative and has ensured that the situation will be remedied and consumers compensated.
"Businesses that act positively and effectively to address such issues have nothing to fear from the ACCC.
"However, where businesses wait to be approached by the ACCC or do not rectify a situation quickly, the ACCC will not hesitate to take whatever action is necessary to ensure that consumers obtain refunds", Professor Fels said.
ANZ will be writing to all of the affected customers and providing the refund either by a credit to their accounts or by cheque.
In July, the ACCC accepted a public commitment signed by the Chief Executive Officer, Mr John McFarlane, on behalf of ANZ Bank. ANZ undertook to comply with the ACCC's price exploitation guidelines and committed to ongoing liaison with the ACCC on GST matters.