Australian banks face massive legal action

Australia's banks are facing legal action for overcharging millions of customers in penalty and late fees, the Sydney Morning Herald is reporting.

Leading litigation funder IMF Australia will pay for more than 10 class actions against the banks, including the big four - Commonwealth Bank, ANZ, Westpac and National Australia Bank - in an effort to claw back at least $400 million in what its lawyers will claim is a systematic gouging of banking customers, the report said.

The fees amount to about A$5 billion over six years.

Seven other Australian banks are also expected to be targeted for alleged wrongful and unfair overcharging. They are the Bank of Queensland, Bendigo and Adelaide Bank, Suncorp, HSBC and Citibank.