March 14, 2025 - 18:09
In a significant legal development, Westpac has agreed to a settlement of $81 million regarding a class action lawsuit related to its auto finance practices. The lawsuit, initiated by law firm Maurice Blackburn in 2020, accused Westpac and its subsidiary, St George Finance, of allowing car dealerships to inflate interest rates on car loans. This practice reportedly enabled dealers to earn excessive commissions from March 1, 2013, to October 31, 2018.
The allegations raised serious concerns about the transparency and fairness of the auto financing process, impacting numerous consumers who secured loans through these dealerships. The settlement aims to address the grievances of affected customers, providing them with compensation for the financial burdens they faced due to inflated interest rates.
While Maurice Blackburn has not provided immediate comments regarding the settlement, the outcome highlights the increasing scrutiny of financial institutions and their lending practices in Australia. This case serves as a reminder of the importance of consumer rights and accountability within the finance sector.
