Another chapter in the legacy of poor behaviour by the major banks has been closed in the Federal Court in Melbourne. In this instance, the Australia and New Zealand Banking Group was ordered to pay a A$5 million penalty for breaches of the responsible lending provisions by its former car finance business, Esanda. In relation to these civil penalty proceedings, the Court found ANZ failed to take reasonable steps to verify the income of the borrowers in 12 car loan applications from three brokers, despite having good reason to doubt the authenticity of the payslips being provided, including the knowledge that one of the brokers had been previously investigated for fraud. "ANZ management did not ensure that relevant policies were complied with," the Court said, "and, in the case of the contraventions involving [one of the dealerships] in particular, no action was taken despite management personnel having become aware of the issues affecting [that broker]."The Court's statement of facts also notes that reasonable steps to verify a consumer's income would have included a request that the potential borrower provide a bank statement showing a history of salary deposits or substantiating salary deposits in ANZ bank accounts for an existing customer.The Court's judgment follows ASIC's announcement of a package of actions against ANZ for contraventions of various responsible lending provisions of the National Consumer Credit Protection Act. ANZ will be remediating approximately 320 car loan customers for loans taken out through the three broker businesses from 2013 to 2015 which are likely to have been affected by fraud. The remediation will total around $5 million, and ANZ will: offer eligible customers the option of entering into a new loan on more favourable terms than the existing loan; provide refunds to some customers who have paid their loan out or had the car repossessed; and remove any default listings resulting from the loan.This business has been identified by the Royal Commission as one niche operation that it will review later this month.