Bankers clash with litigation funders as select committee considers retrospective changes to the CCCFA

The Reserve Bank’s estimate of a $12.9 billion hit to the financial system unless legislation is passed to retrospectively hobble a class action against two major banks is alarmist and fanciful, says the firm funding the litigation.

And the lawyers taking on the ANZ and ASB banks warned that trust in the courts would be shattered if the government used legislation to retrospectively interfere in a live case.

The remarks were made to a Finance & Expenditure Select Committee hearing on Wednesday, examining a section of the Credit Contracts and Consumer Finance Amendment (CCCFA) Bill dealing with the penalties imposed on creditors for inadequate disclosure to their customers.

As outlined previously in LawNews, the bill has stirred controversy because it retrospectively changes what standard the court applies when considering compensation in claims filed by consumers from 2015 to 2019. It specifically targets the ongoing class action against ANZ and ASB.