ANZ will pay $25 million for misleading its customers. 

The bank has agreed to pay the penalty for failing to properly pay its customers under the terms of its Breakfree mortgage packages.

The mortgage issue impacted more than half a million ANZ customers, who will be given access to a $200 million compensation fund. 

ANZ claims the “majority” of these payments have already been made.

“ANZ has completed the majority of payments to customers impacted by the Breakfree package issues relating to home loans, transaction accounts and credit cards, with remaining payments expected to be made in 2022 and remediation for the optional additional benefits being completed over 2022-2023,” the bank said in a statement this week.

The legal matter is the last ASIC action resulting from the banking royal commission.

The investigations stemming from the royal commission have led to $110 million in ASIC fines for various companies. 

The $25 million figure agreed by ANZ is still to be accepted by the Court.

“ANZ admits that it made false or misleading representations to customers that it had systems and processes in place that were adequate to provide customer account benefits,” ASIC said in a statement.

“ANZ further admits that the bank’s systems and processes were not capable of delivering those benefits consistently and that it breached its obligations as a financial services and credit licensee to provide services honestly, efficiently and fairly.”