Plaintiffs in a class action lawsuit against the ANZ Group Holdings (ASX:ANZ, NZE:ANZ) and ASB Bank are seeking to settle a four-year case for breaches of credit laws for over NZ$300 million, Radio New Zealand reported Wednesday.

The lawsuit involves the banks' customers affected between 2015 and 2019 for not making proper disclosures, resulting in overcharging of fees and interest.

The offer was revealed at the Finance and Expenditure Select Committee hearing into proposed amendments to the Credit Contracts and Consumer Finance Act, per the report.

The consumer group claimed that the proposed changes to the law could retrospectively undermine their lawsuit.

For its part, ANZ rejected the settlement offer, saying that "the proposed resolution does not reflect the nature or scale of the underlying issue," the report said.

The banks have already paid over NZ$43 million to reimburse affected customers in a settlement with the Commerce Commission in 2020.