Australia's Westpac hit with class action over car loan commissions

Credit: REUTERS/LOREN ELLIOTT

July 17 (Reuters) - Westpac Banking Corp WBC.AX said on Friday it has been served with a class action over commissions paid to auto dealers between 2013 and 2018 that are alleged to have led to higher interest rates for car loans.

The "flex commissions" have been banned in Australia since 2018.

The class action, filed by law firm Maurice Blackburn, claims Westpac and St George Finance Ltd let car dealers hike rates on car loans to earn these commissions from March 1, 2013, to Oct. 31, 2018.

Consumers in some cases were charged more than three times the set base interest rate, Maurice Blackburn said in a statement.

Australia's second-biggest bank said the damages amount sought was unspecified and it will defend itself against the claim.

The bank acknowledged that other similar claims may be filed.

(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Leslie Adler)

((NikhilKurian.Nainan@thomsonreuters.com; Twitter: @NikhilKurianN; +91 806 182 2724;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.