1.   Why do you want me to complete this registration form?

This information is necessary to register for the class action, calculate the amount of money to which you are entitled under the settlement and distribute that money to you if the settlement is approved by the Court.

 

2.   How do I receive money?

You must complete and submit the registration form by 4 October 2024. If you do not register, you will not receive any money. You will also need to provide bank account details to receive distribution of compensation following settlement approval.

 

3.   How much money will I receive?

It is not possible to provide an estimate of how much money you will receive until after the deadline to register.

 

The amount of money you receive will depend on:

• the amount of “retrospective interest” that you paid between 1 July 2010 and 31 December 2018; and

• the number of group members who register to share the settlement sum; and

• the amount approved by the Court for litigation costs to be deducted from the settlement See the question “What deductions for the costs of the proceeding will be sought from the settlement sum?”

It is not possible to provide an estimate of your settlement payout until after the deadline to register, after which we will know how many group members have registered to receive a share of the settlement. After the registration deadline and following exchange of data with ANZ, we will then be able to calculate the settlement payout entitlement for all group members who registered and seek the Court’s approval of the settlement. After the Court decides whether to approve the proposed settlement, which will include the Court determining that the legal and other costs to be deducted from the settlement sum are fair and reasonable, we will email you to advise of the Court’s decision and provide information about the amount of any settlement payout you are entitled to receive. In accordance with court orders, the administrator of the settlement distribution scheme will deposit any settlement payout you are entitled to receive into your account.

I don’t know how much interest I paid. Can you tell me?

ANZ has not provided us with information regarding individuals’ interest payments. The Court has ordered ANZ to provide data to calculate the amount of retrospective interest paid for registered group members following the end of registration. This information will be provided on a confidential basis and will be used to determine each registered group member’s recovery.

 

4.   When will I get paid?

Settlement payments will be distributed to registered group members between approximately March and April 2025, once the Court approves the settlement and the Court’s approval is not successfully appealed.

 

5.   Are there any out of pocket costs?

No. There are no out of pocket costs. The litigation costs will come out of your compensation.

 

6.   Do I need to provide any documents?

No, ANZ’s records will be used to determine how much money you receive after registration.

 

7.   What happens if I do nothing?

If you do nothing you will remain an unregistered group member and you will not receive any money if the Court approves the settlement. You will still be bound by the terms of the settlement including any releases. This means that you will not be able to bring a claim against ANZ for matters related to the allegations in the class action.

If the Court does not approve the settlement at this time and you did nothing (you did not register or opt out), you will not be able to make any claims in this class action even if there is a different settlement in the future.

 

8.   Am I a group member?

You are a group member if:

• you held an ANZ “interest-free” personal credit card at any time from 1 July 2010 to 31 December 2018; and

• you were charged interest on purchases made on that credit card during that

All group members who do not opt out will be bound by the terms of the settlement, if the settlement is approved by the Court. However, you will only be eligible to receive a share of the settlement if you register.

 

9.   What is a class action?

A class action is a legal proceeding where usually one person, called the representative applicant or plaintiff, brings a claim on behalf of a group of persons (seven or more) who are alleged to be affected in a similar way by the conduct of a party or parties (the respondent or defendant). The people on whose behalf the proceeding is commenced are called group members.

Class actions exist to allow similar claims to be resolved together efficiently, including claims for small amounts that wouldn’t otherwise be possible to pursue by court action. Often class actions involve thousands of group members. In these circumstances, all the group members bringing individual cases would clog the courts.

The representative applicant who commences the proceeding in the Federal Court does not need the agreement of group members before commencing the proceeding. However, group members do not need to participate if they do not wish to do so. Further information regarding participating or not participating is detailed in these FAQs.

However, it is necessary to register in order to receive any money from this settlement if approved by the court.

 

10.  What is the ANZ class action about?

ANZ is being sued on behalf of group members who were charged interest on an ANZ “interest-free” personal credit card account at any time from 1 July 2010 to 31 December 2018.

The class action filed in the Federal Court of Australia alleges that ANZ’s “interest-free” credit card contracts, during the period of 1 July 2010 to 31 December 2018, contained unfair terms, and that ANZ engaged in unconscionable conduct causing loss and damage to ANZ credit card holders. Because of those allegedly unfair terms and unconscionable conduct, people who were charged certain kinds of interest on those credit cards are entitled to compensation. Woodsford is providing funding for the class action.

Is this the same class action as another one I have heard about?

Please note that the ANZ Credit Cards Class action is Tour v Australia and New Zealand Banking Group Limited, Federal Court proceeding no. VID 706/2021.

This proceeding should not be confused with other class actions against ANZ, such as Reilly & Anor v Australia and New Zealand Banking Group Limited VID133/2020 (the ANZ Consumer Credit Insurance Class Action). That proceeding is an entirely different and unrelated proceeding.

Allegations

The proceeding alleges that ANZ’s credit card contract terms were unfair terms pursuant to sections 12BF and 12BG of the Australian Securities and Investments Commission Act 2001 (Cth) (ASIC Act) because ANZ:

• charged interest retrospectively on credit card purchases that previously had the benefit of an interest free period;

• charged interest on purchases paid off in a timely manner by the cardholder;

• did not provide cardholders with the ability to calculate their potential interest charges; and

• did not clarify the way interest would be charged on relevant ANZ credit card accounts, preventing the cardholder from being able to understand how interest would be charged if the entirety of the closing balance for each statement period was not paid.

The proceeding also alleges that by charging interest to group members in these circumstances ANZ engaged in unconscionable conduct pursuant to section 12CB of the ASIC Act.

The proceeding alleges that group members are entitled to compensation as a result of the alleged unfair contract terms and unconscionable conduct.

ANZ denies these allegations. The settlement (which is subject to court approval) is without any admission of liability.

 

11.  How much has the class action been settled for?

Subject to court approval, the class action has settled for $57.5 million without admission of liability. This amount is for compensation to group members, but also is for legal fees and disbursements, an uplift of 25% on legal fees carried by PFM, the costs associated with running the class action as well as administering the settlement, insurance, the costs associated with the managed investment scheme, and a commission to the litigation funder, all of which will require approval from the Court. See questions “What is a litigation funder and why is the class action using one?” and “What deductions will be sought from the settlement sum?”.

 

12.  How did you get my contact information?

ANZ identified you as a group member, and the Court ordered ANZ to provide us with your information so that we could contact you to participate in the settlement.

 

13.  Can I register for someone else?

No, you cannot register for someone else unless that person is a group member and you are appropriately authorised (for example, if you are the legal guardian of, or have power of attorney for, that group member. Executors of deceased estates may also register in the name of the group member.

If the deceased person was the primary account holder and you are a secondary account holder, you cannot register on their behalf unless you are the executor of the estate.

How to complete the form

The registration form provides for legally authorised persons to complete the form on behalf of the group member. Please complete the form in the name of the group member and ensure that you tick the box declaring your legal authorisation. You will be required to provide your full name under this tick box.

Evidence of authorisation

You must be able to provide evidence of your legal authority to act on behalf of the group member where it is requested by us. We may ask for further information to verify whether the person on whose behalf you are acting is a group member and whether you can act on their behalf.

Please note that any compensation the group member may be entitled to can only be paid to the group member (or the estate account, as the case may be).

 

14.  Do I have to pay for legal fees if I register?

You will not have to pay any “out of pocket” costs by participating in the class action.

However, if the Court approves the settlement and you are entitled to receive compensation, the Court will likely order that a portion of that money be used to cover legal costs of the proceeding. Litigation costs are paid from your settlement compensation and will not exceed amounts to which you are entitled.

In deciding whether to approve the settlement, the Court will determine two separate questions being

(1) whether the costs (including legal fees and funder commission) are fair and reasonable and (2) whether the settlement is fair and reasonable. The interests of group members inform the Court’s assessment.

The Court will not approve a settlement if it considers that the settlement will not be fair and reasonable for group members. In that case, there will be no payment to group members and the class action will continue until there is either a trial or a further settlement is reached.

15. What deductions for the costs of the proceeding will be sought from the settlement sum?

The Applicant will apply for the costs of the proceeding to be taken out of the settlement sum of

$57,500,000. However, the Court will determine whether the costs are fair and reasonable. The estimated costs include:

• Legal costs currently estimated at approximately $6,216,788 (comprising legal fees and disbursements in running the class action;

• A litigation funding commission which is proposed to be approximately $14,384,589, which is approximately equivalent to 25% of the settlement sum, being 5% of the net settlement amount (the settlement sum minus the funder’s cash outlay);

• The costs of procuring insurance in case of an adverse costs order in the proceeding, including an insurance premium and cost of insurer deed, of approximately $1,167,148 and the costs of administering the managed investment scheme, being $150,839;

• An uplift to Phi Finney McDonald of 25% of the legal costs that were not paid by the funder estimated at $380,664;

• Applicant’s payment currently estimated at approximately $5,000 to reimburse him for time and expenses incurred in representing group members in the class action; and

• The reasonable costs of administration of the settlement currently estimated at $472,758.

These costs will be shared on a pro-rata basis across all registered group members, and will never exceed the amount of your settlement compensation.

It is estimated that $34,722,214 (60.4%) of the $57,500,000 settlement sum will be distributed to group members.

 

16.  What is a litigation funder and why is the class action using one?

A litigation funder is a third party who finances some or all of the legal expenses of a court proceeding on behalf of the representative applicant. This is done on the agreement that they will be reimbursed for their costs and recover a share of the monies awarded if the class action results in a successful outcome. This generally means a settlement or win at trial.

Given the expensive costs of a class action, a litigation funder allows a class action to proceed without the representative applicant or the group members having to pay upfront legal fees. A litigation funder also protects group members from taking the risk of having to pay the defendant’s legal costs in the event that the class action is not successful and the Court finds in favour of the defendant.

 

17.  Why should the litigation funder get a commission?

In return for funding the Applicant’s legal costs, the litigation funder, Woodsford, has agreed with the Applicant that the Applicant would seek a ‘funding commission’ if a settlement was reached or other successful outcome obtained. This is in addition to reimbursement of the costs the litigation funder has paid out as the case has progressed, and recognises the risks assumed by Woodsford in funding the proceeding. If the class action was unsuccessful, the litigation funder would have been liable for all of the Applicant’s costs, plus any of ANZ’s legal costs ordered by the Court.

The Applicant intends to apply to the Court for an order that all registered group members contribute a pro-rata amount to the costs incurred in conducting the class action and to pay to the litigation funder the funding commission. This type of order is called a “common fund order” (CFO). The CFO is not paid directly by group member, but is taken from the total settlement amount. This means that you do not have to pay the litigation funder directly if the order is made.

The Applicant intends to apply for a CFO for the following reasons:

1. it would be unfair for only the Applicant who has entered into an agreement with the litigation funder to be the only person required to pay a commission in circumstances where all registered group members would benefit from a successful outcome in the class action;

2. to account for the litigation funder’s risks in funding the class action, including the risks of paying ANZ’s legal costs if the case is unsuccessful;

3. the ultimate percentage commission rate under the CFO must be approved as fair and reasonable by the Court; and

4. Group members who do not want to participate in the proceeding and contribute to the costs referred to at question 11 above, are able to opt out of the proceeding.

 

18.  Why will the Applicant seek an “uplift” payable to Phi Finney McDonald?

An uplift fee is a legal fee payable to the lawyers for a party (in this case, the Applicant) for putting a percentage of their fees at risk.

Phi Finney McDonald agreed with the Applicant in this class action (pursuant to a conditional legal costs agreement) to reduce the total of the “up front” fees for their services by 25% on the basis that, if the Applicant’s claim was successful, they would be entitled to recover that 25% of their fees from any settlement monies together with the uplift of a further 25% on that sum.

By reducing its “up front” fees, Phi Finney McDonald carry the risk of not recovering the 25% portion of their fees and the uplift amount if the claim is unsuccessful.

 

 

19.  I don’t want to participate in the class action. How do I opt out?

The ANZ class action was commenced on an ‘open class’ basis. This means that you are included in the class action if you meet the certain criteria. However, if you do not want be a group member and do not want to participate in any settlement or judgment, you can remove yourself by completing an ‘opt out’ notice.

To opt out you must complete the opt out notice here and email the notice to the Federal Court at vicreg@fedcourt.gov.au and PFM at ANZCCEnquiries@phifinneymcdonald.com by 4 October 2024.

If you consider that you have claims against ANZ which are based on your individual circumstances that are related to the claims described in the class action, then it is important that you seek independent legal advice about the potential binding effects of the class action as soon as possible and before the deadline for opting out. Phi Finney McDonald cannot provide you with advice about whether you should opt out of the class action.

If you do nothing, you will not receive any money, but you will still be bound by the settlement.

 

 

20.  What are the consequences of opting out?

If you opt out of the class action prior to, or on, 4 October 2024, then:

• you will no longer be a group member in the class action;

• you will not be entitled to any monetary award that ultimately is obtained on behalf of group members in the class action, whether by way of settlement or Court judgment; and

• you will preserve your right to pursue a separate claim against ANZ in relation to the matters the subject of the class action, if you so choose; however

• because there are time limits in which to commence proceedings to recover any loss and damage you may have suffered, if you wish to pursue a separate claim against ANZ, you should seek legal advice as soon as possible regarding the amount of time (if any) available to you in which to commence a proceeding. Your time for bringing a separate action may have already

 

 

21.  What happens if the Court does not approve the settlement?

To ensure that a proposed settlement is fair and reasonable and in the interests of the group members, Court approval is required. If the Court does not approve the proposed settlement, the class action will continue and no money will made available to group members unless and until the class action is successful, either at a potential further settlement or if the Applicant wins the case in Court after a trial.

The Court will hear the application for approval of the proposed settlement on 19 December 2024 at 10:15AM at the Federal Court in Melbourne. Group members may attend the hearing.

 

22.  Can I object to the proposed settlement?

Yes.

You can object by completing the Notice of Objection to Proposed Settlement form here by 4 October 2024. You must still register if you want to receive any money even if you also want to dispute the settlement.

 

 

23. How can I obtain copies of the other documents relevant to the class action and proposed settlement?

Copies of relevant documents, including documents setting out the Applicant’s claim and ANZ’s defence, may be downloaded from here.

To obtain a copy of the deed of settlement between the parties you must be a group member and you will need to sign a confidentiality undertaking. Instructions to obtain a copy of the deed are available on the group member portal.

 

 

24.  Who are the lawyers representing the Applicant in the class action?

Phi Finney McDonald represents the Applicant. Further information regarding Phi Finney McDonald can be found here.

 

25.  My question hasn’t been answered. Can I speak to a lawyer?

In the event your question is not answered by the FAQs, please email your question to ANZCCEnquiriesGM@phifinneymcdonald.com . Emails will be responded to as soon as possible. At the beginning of the registration period responses may take longer than usual due to volume of enquiries expected. Please provide your telephone number so you can be telephoned if required.

See “How will my personal information be used”? A copy of Phi Finney McDonald’s privacy policy can be reviewed here.

 

26.  What if my details change after I register?

The link that was sent to you is a one-use link. You will not be able to amend your registration details on the portal after you have submitted your registration form. Until it is submitted, you may be able to return to your form on the portal via your browser on the device you used to click into the portal. However, it may no longer be available for you to access. If your details change after you have registered, please send an email ANZCCEnquiriesGM@phifinneymcdonald.com detailing the required changes to your registration information with the subject line “My details have changed”.

 

27.  How will my personal information be used?

The Federal Court of Australia has authorised ANZ to provide a limited amount of your personal information to Phi Finney McDonald for the purposes of contacting you about the Class Action, and for calculating your potential entitlement to compensation if the Court approves the settlement. That information has been authorised to be disclosed to Phi Finney McDonald and any agent or representative appointed by the Applicant, on a confidential basis for any of the following purposes:

• enabling the settlement notice to be sent to group member and any subsequent use pursuant to or to comply with the proposed scheme for distribution of the settlement;

• effecting registration of group members; and/or;

• calculating entitlements for distribution to each group

The Federal Court made orders about this on 31 May 2024, 18 June 2024 and 30 July 2024.

You will also be requested to provide personal information for the purpose of determining you are a group member, and for use to comply with the proposed scheme for distribution of the settlement if the settlement is approved. You are not required to provide your personal information to us. However, if you do not, or if you do not update the information on the portal platform so that it is correct, Phi Finney McDonald may not be able to provide the services to you and the settlement Administrator (the person responsible for distributing settlement monies) may not be able to make any settlement payment to you.

Your personal information may be accessed by Litigationware Limited (trading as FinLegal), on a strictly confidential basis for the sole purpose of Phi Finney McDonald processing and using that information for the purposes for which it has been collected and authorised to be used.

Your personal information will be held by Phi Finney McDonald on a strictly confidential basis. Once we are no longer legally or contractually obliged to keep your personal information, steps will be taken to delete it from Phi Finney McDonald’s records. Electronic information which we can’t permanently destroy or de-identify without compromising other information, such as certain back-ups, will be securely stored with restricted access and we won’t attempt to use it.

For more information about the handling of personal information by Phi Finney McDonald Pty Ltd (including how you may access the personal information held by PFM and how you may complain about a breach of the Australian Privacy Principles), see the Privacy Policy which may be accessed here.

 

28.  Why did I not hear about this from ANZ?

ANZ announced the settlement on its website on 25 March 2024. You may view the announcement here: https://media.anz.com/posts/2024/march/anz-agrees-to-settle-credit-cards-class-action-