BNZ, ANZ, Westpac, ASB and Kiwibank have been named in the action led by lawyer Andrew Hooker, Slater & Gordon and Litigation Lending Services (NZ).
Hooker said banks had been overcharging customers when they overdrew their accounts, paid credit card bills too late or had a cheque bounce.
"When your account balance runs low or you are late with a credit card payment, the last thing you need are extra fees; yet for years that's exactly what the banks have been hitting you with.”
He said the fees were unfair and should be challenged in court. He asked customers who had been affected to sign up.
“In Australia, lawyers have launched class actions valued at about $280 million to recover these fees. We think it's time for New Zealanders to band together and stand up to the banks.”
There would be no upfront cost for customers to join the action. Litigation Lending Services is funding the legal costs and will be reimbursed, plus 25% of any compensation awarded.
