ASB Bank, a New Zealand-based bank fully owned by Commonwealth Bank (CBA), has reached a settlement of $NZ135.5 million ($119.71 million) in a class action lawsuit. The legal action concerned alleged breaches of the Credit Contracts and Consumer Finance Act. ASB Bank provides a range of financial services, including retail, business, and rural banking, as well as wealth management. Commonwealth Bank is one of Australia’s largest financial institutions, offering diverse banking and financial products.
CBA announced to the Australian Securities Exchange (ASX) that the settlement had been agreed upon in relation to the proceedings against ASB. According to the announcement, in agreeing to the resolution, ASB Bank made no admission of liability regarding the alleged breaches.
The settlement remains subject to approval by the High Court of New Zealand. Until the High Court gives its approval, the details of the settlement remain subject to change. Both ASB and CBA have stated they will provide updates as the situation progresses.
This settlement marks a step toward resolving the legal challenges faced by ASB in New Zealand. Stakeholders are awaiting the High Court’s decision, which will determine the final outcome of the settlement agreement. The resolution aims to address concerns raised under the Credit Contracts and Consumer Finance Act.
