Australia’s Westpac settles auto finance class action lawsuit for $81 million
Australia’s Westpac Banking Corp has reached an A$130 million ($81.84 million) settlement on a class action lawsuit against the lender over commissions paid to auto dealers over five years, the bank said on Friday.
The class action, which was filed by law firm Maurice Blackburn in 2020, claimed Westpac and St George Finance let car dealers hike interest rates on car loans to earn these commissions between March 1, 2013 and October 31, 2018.
The settlement, subject to court approval, marks an end to the last litigation related to Royal Commission for Westpac, the lender said. Westpac said it has not paid such flex commissions since 2018 and ceased providing new lending through its auto finance business in 2022.
The settlement amount was “largely provided for as at December 31, 2024 and included in Westpac’s 1Q25 update,” the bank said.
ANZ (ANZ.AX), another major lender, had paid A$85 million in October to settle a 2020 class action over car loans issued under its credit license between 2011 and 2016. Claimants had alleged “flex commissions” were paid to ANZ-accredited car dealers.
($1 = 1.5886 Australian dollars)
Source: REUTERS
