ASB Settles With Commerce Commission

Friday, 15 June 2007, 4:35 pm
Press Release: ASB Bank

Statement made by Linley Wood,
Head of Group Strategy and Communications,
ASB

ASB Settles with Commerce Commission

The Commerce Commission and ASB have today reached a settlement relating to the industry-wide review of the disclosure of fees on foreign currency credit and debit card transactions.

The settlement follows similar settlements between the Commerce Commission and ANZ, National Bank, BNZ, Westpac and KiwiBank.

ASB has co-operated fully with the Commerce Commission throughout this investigation process, which has reviewed the disclosures made by nine banks and card issuers.

Our intention is for all of our fees to be totally transparent to our customers; however, we do accept the Commerce Commission's view that in this case our disclosures for foreign currency card transaction fees were inadequate. We apologise unreservedly to our cardholders for this.

We are pleased that an agreement has been reached. We are now focused on the payment of compensation to our cardholders as soon as possible. Compensation totaling $3.5m has been agreed for this purpose. ASB will also pay a $600,000 fine and an $80,000 contribution towards the Commission's costs.

ASB revised its Terms and Conditions, fees brochures and cardholder statements more than two years ago to ensure full disclosure of the fees for foreign currency card transactions. There is now also separate, full disclosure on cardholders' statements of both the fee that is charged to ASB by Visa or MasterCard (on-charged to cardholders) and the fee charged by ASB.

ASB has already begun the process of searching its card database to identify current and former cardholders who used their cards for foreign currency transactions between March 2002 and March 2005.

Current cardholders (including holders of cards issued by ASB under the brand names of ASB Bank, BankDirect, Sovereign "Go", New Zealand Home Loans and AA MasterCard) can expect to receive compensation by 20 June 2007. Former cardholders can expect to receive a letter from us by 29 June outlining the process they need to follow to claim compensation.

ENDS

© Scoop Media

ASB Bank

Helping you get one step ahead.

In 1847, ASB opened as the Auckland Savings Bank with the pledge: 'to serve the community; to grow and to help Kiwis grow'. And that is very much what ASB is about today.

ASB is a leading provider of integrated financial services in New Zealand including retail, business and rural banking, funds management and insurance.

ASB strives to consistently provide its customers with outstanding service and innovative financial solutions. They're dedicated to providing simple financial products that allow their customers to bank with them how and when they want.

We all have our own ways to measure progress, and our own stories about the things that matter to us. Whatever way you choose to measure progress, and whatever your goals, ASB is there to help you get one step ahead.

Contact ASB Bank

• Info on - Bank Accounts
• Info on - ASB Home Loans
• Info on - ASB Credit Cards
• Link to - Mortgage Calculator
• Info on - Business Banking
• Info on - ASB Kiwisaver
• Link to - ASB Blog
• Info on - Personal Loans