Westpac Announces A$130m Settlement for Flex Commissions Class Action
The Banking Royal Commission established by the Australian government uncovered a wide range of misconduct and failing by the country’s financial institutions, with a slew of litigation and class action claims being brought in the aftermath. Six years on from the commission’s final report, some of these class actions are only now reaching a conclusion.
An article in Reuters covers the news that the Westpac Group has agreed to settle a class action brought against it by car loan customers, over “flex commissions” paid to car dealers by Westpac and St George Finance. The provisional settlement, which is subject to court approval, is for A$130 million and would see the class action resolved without Westpac accepting any admission of liability.
The claim was brought by law firm Maurice Blackburn in 2020 on behalf of consumers who entered into a finance agreement for the purchase of a car issued under Westpac or St George’s credit licence, between 1 March 2013 to 31 October 2018. In its announcement, Westpac said that it has not paid these flex commissions to car dealers since 2018, and had ceased providing new lending through its dealer introduced auto finance business since 2022.
At the time of reporting, Maurice Blackburn had not yet issued a statement on the announced settlement.
The full announcement from Westpac Group can be read here. More information about the class action can be found on the Supreme Court of Victoria’s website.