In a year marked by major developments in the world of consumer finance, several of the world’s largest banks have been thrust into the spotlight over class action lawsuits and settlements that could see billions of dollars returned to customers. From New Zealand to the United States, institutions like Wells Fargo, Credit One Bank, ASB Bank, and ANZ are navigating the fallout from allegations of wrongful fees, illegal robocalls, and unethical banking practices. These cases not only highlight the risks that come with large-scale financial operations but also underscore the growing power of consumer rights and regulatory oversight.
On October 8, 2025, ANZ, one of New Zealand’s largest banks, announced it would fight a class action lawsuit brought under the Credit Contracts and Consumer Finance Act (CCCFA). This decision comes on the heels of a high-profile settlement by ASB Bank—a subsidiary of the Commonwealth Bank of Australia—which agreed to pay $119.35 million to settle a class action alleging it had wrongly charged fees and interest to 150,000 home and personal loan customers. According to BusinessDesk, the ASB settlement marks one of the largest consumer class action payouts in New Zealand’s recent financial history.
ASB’s willingness to settle stands in stark contrast to ANZ’s stance. Despite the similarities in the cases—both involving claims of improper charges to loan customers—ANZ has vowed to continue its legal fight. The bank’s resolve, as reported by BusinessDesk, signals a broader debate within the industry over accountability and the interpretation of consumer protection laws. For New Zealanders affected by the alleged overcharging, the ASB settlement offers both restitution and a measure of closure, while the ANZ case remains unresolved and could set important legal precedents for the sector.
Meanwhile, on the other side of the globe, U.S. consumers are seeing the results of years-long legal battles with major financial institutions. On October 7, 2025, Credit One Bank reached a $14 million settlement to resolve a class action lawsuit accusing it of violating the Telephone Consumer Protection Act (TCPA) by placing illegal robocalls between 2014 and 2019. The suit alleged that Credit One used automated dialing systems and prerecorded messages to contact consumers without their prior consent—a practice strictly regulated under U.S. law. As detailed in the settlement documents, affected individuals could receive cash payments of up to $1,000, depending on the strength of their proof and the number of claims filed.
The Credit One case is notable not only for its financial implications but also for the broader message it sends about consumer rights. The TCPA, which prohibits companies from using autodialers or prerecorded messages without explicit consent, carries stiff penalties—up to $1,500 per unlawful call if violations are found to be willful. While Credit One did not admit any wrongdoing, the settlement allows thousands of consumers nationwide an opportunity for compensation. According to the settlement terms, the final payout per individual will depend on how many eligible people file claims and whether they can provide supporting documentation such as call logs or voicemails. The process will officially open once the court approves the settlement and the designated website goes live.
For claimants, the path to compensation is reasonably straightforward: confirm that the calls in question took place between 2014 and 2019, verify that they were automated or prerecorded, and provide any supporting evidence if available. Even those without documentation may still qualify for a smaller award, so long as their number appears in Credit One’s records. The settlement underscores the importance of vigilance in protecting consumer privacy and the potential for class actions to drive accountability in the financial sector.
Perhaps the most significant of this year’s settlements involves Wells Fargo, a bank that has become synonymous with large-scale financial scandals in the United States. In December 2022, Wells Fargo agreed to a staggering $3.7 billion settlement following revelations of widespread unethical banking practices uncovered as far back as 2016. According to reporting by indiaexpo2020.com, $2 billion of the total settlement has been earmarked for direct customer compensation, with more than 16 million accounts affected between 2011 and 2022.
The Wells Fargo case is a sweeping example of systemic failure within a major bank. Employees, in a bid to meet aggressive internal sales targets, opened millions of fraudulent accounts in customers’ names without their consent. Further investigation uncovered even more egregious wrongdoing, including improper mortgage foreclosures, illegal auto repossessions, and the misapplication of fees on deposit accounts. The Consumer Financial Protection Bureau (CFPB) ultimately imposed a $1.7 billion penalty on the bank, in addition to the $2 billion set aside for consumer redress.
Compensation under the Wells Fargo settlement is being distributed based on the type of account and the extent of harm suffered. For instance, auto loan customers who experienced unlawful repossession or unreturned insurance payments are eligible for reimbursement, with a minimum payout of $4,000 for wrongful repossession. Mortgage borrowers who lost homes due to unjust foreclosures or loan modification errors will share in a $200 million compensation pool, while deposit account holders subjected to misapplied fees could receive between $100 and $500, depending on the specifics of their case. Most impacted consumers are being contacted directly by Wells Fargo, but those with unresolved issues can reach out to the CFPB or the bank’s dedicated hotline for assistance.
These high-profile settlements are not only about financial restitution—they also serve as cautionary tales for the banking industry and a testament to the power of collective legal action. Regulators and consumer advocates argue that such outcomes are essential for rebuilding trust in financial institutions and deterring future misconduct. At the same time, some industry leaders contend that the rising tide of class actions can create uncertainty and stifle innovation, especially when settlements are reached without admissions of guilt.
For now, consumers affected by these cases have a rare opportunity to reclaim funds lost to questionable banking practices. Whether through the courts or via direct outreach from their banks, millions stand to benefit from a wave of settlements that, just a few years ago, might have seemed unthinkable. As the ANZ case continues to wind its way through the New Zealand legal system, and as deadlines for claims approach in the U.S., the financial sector—and its customers—will be watching closely to see what comes next.
These settlements mark a turning point in the relationship between banks and the people they serve, offering both accountability and hope for fairer treatment in the years ahead.
