ANZ has declined a proposed settlement by lawyers leading a massive class action against the bank for giving customers the wrong information about their loans.

The lawyers asked ANZ to agree to pay a penalty of up to $300 million, on top of the $35 million it has already paid more than 100,000 customers to compensate them for the error.

ASB, which is also subject to the class action, is yet to respond to the proposal for it to also make a payment of up to $300 million.

NZ Herald Wellington business editor Jenee Tibshraeny explains further.

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