ANZ has agreed to pay $57.5 million to settle a class action lawsuit alleging customers were charged interest on credit card purchases that should have been interest-free.

The class action claim brought by Phi Finney McDonald said ANZ’s credit card interest terms were unfair because they enabled the bank to retrospectively cancel customers’ interest-free periods.

The claim also alleged ANZ charged interest on purchases that previously benefited from an interest-free period.

The Federal Court lawsuit covers a period from July 1, 2010 and December 31, 2018.

ANZ announced on Monday it had settled the claim without admitting liability.

“We believe the proposed settlement is an excellent outcome for group members,” said Phi Finney McDonald principal lawyer Brett Spiegel.

Further information about the settlement approval process will be provided to eligible ANZ credit card customers in the coming months, Phi Finney McDonald said.

– AAP