American Express fined in New Zealand over credit card fees : Australasia World

Duke Of Wellington - American Express was fined a sum of 250,000 New Seeland dollars (about 187,500 United States dollars) plus costs in the Auckland District Court Thursday after pleading guilty to five complaints of breaching the Carnival Trading Act. The company admitted failing to let on currency transition fees to cardholders and agreed to pay 1.3 million New Seeland dollars in compensation.

It was the 9th fiscal establishment to plead guilty on similar complaints brought by New Zealand's guard dog Commerce Commission, which said it had obtained more than than 24 million New Seeland dollars in compensation to cardholders.

"This have been a landmark probe which have sent a very strong message to the banking industry that Banks must not be deceptive about the being and extent of fees," said committee president Paula Rebstock.

"It have resulted in alterations to the manner Banks and recognition card companies let on that information."

She said the complaints resulted in refunds of fees paid by many one thousands of recognition card users.

The last lawsuit related to American Express recognition card and complaint card minutes between June 2002 and August 2004, when clients who used their card game overseas were charged a 2 per cent fee for each currency transition which was not adequately declared by the company.

The committee previously prosecuted ANZ National Bank, Depository Financial Institution of New Zealand, Westpac, Kiwibank, Auckland Savings Bank, Trustee Savings Bank, Warehouse Financial Services and Diners Baseball Club for inadequate revelation of currency transition fees.