The Financial Markets Authority (FMA) has called on the High Court to impose a $NZ280,000 ($261,000) financial penalty against ANZ New Zealand for making false and misleading representations about credit card insurance.

ANZ New Zealand previously admitted to Financial Markets Conduct Act breaches as part of a resolution with FMA over the sale of credit card repayment insurance policies that offered certain customers no cover or benefit.

A court hearing to determine the penalty was held on Friday in Auckland, with a decision to be handed down at a later date. FMA has also called for declarations of contravention

The regulator says duplicate credit card cover was sold to customers which provided no additional benefits and sales were made to customers ineligible for cover.

The FMA says the issues extend back to at least 2001, but the court case relates to policies sold from 2014, when the Financial Markets Conduct Act came into effect.

“While ANZ has embarked on their own remediation program and ultimately self-reported this matter, the case points to a failure of internal systems and controls resulting in customer harm over a significant period of time,” FMA General Counsel Nick Kynoch said last year.

An ANZ New Zealand spokesman says the business stopped selling credit card repayment insurance in 2019.

“ANZ is awaiting the decision of the court and will comment after it is issued,” he told insuranceNEWS.com.au.