In a major development following years of legal scrutiny, Westpac Banking Corporation and its subsidiary St George Finance have agreed to a $130 million AUD settlement (approximately $81 million USD) in response to a class action lawsuit over inflated car loan interest rates. Filed by law firm Maurice Blackburn in 2020, the lawsuit alleged that between 1 March 2013 and 31 October 2018, Westpac allowed car dealers to receive higher commissions by raising the interest rates on consumer auto loans—without customers’ knowledge.
The legal action, now approved by the court, is part of broader accountability measures following Australia’s Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. Similar lawsuits have impacted other lenders, including ANZ, which agreed to a separate $85 million settlement over similar allegations.
This article outlines who qualifies for compensation, how to register, and what affected individuals should expect next.
Westpac $81M Car Loan Settlement 2025 Overview
| Field | Details |
|---|---|
| Article Topic | Westpac Auto Loan Class Action Settlement |
| Settlement Process | Pending Court Approval |
| Settlement Amount | AUD $130 million (~USD $81 million) |
| Reason | Inflated interest rates via flex commission structures |
| Time Period Affected | 1 March 2013 – 31 October 2018 |
| Beneficiaries | Consumer car loan customers from Westpac, St George, BankSA, Bank of Melbourne |
| Assistance Line | 1800 318 063 |
Why Was Westpac Taken to Court?
According to court filings, Westpac and its affiliates permitted car dealerships to set higher interest rates on loans issued through their finance programs. In return, these dealers earned larger commissions—costing borrowers more over time. This practice, known as a flex commission arrangement, was banned by ASIC in 2018.
The lawsuit argued this conduct was unfair and undisclosed, and it ultimately led to inflated repayment costs for thousands of customers across Australia.
Who Is Eligible for the Settlement?
You may be entitled to compensation if you meet all the following conditions:
- You took out a consumer car loan through a dealership
- The loan was arranged between 1 March 2013 and 31 October 2018
- The financing was facilitated by Westpac, St George Finance, BankSA, or Bank of Melbourne
- A flex commission was paid to the dealer as part of the loan structure
You may still be eligible even if:
- The loan has been paid off
- You no longer own the vehicle
- You’ve moved interstate or overseas
- You do not have the loan documents
How to Register for the Westpac Settlement
Registration is free and does not guarantee a payment, but it ensures your interest is recorded. If you’ve already registered, no further action is needed. New registrants should:
- Visit the official settlement registration website (to be provided by Maurice Blackburn)
- Fill out the form with your contact and vehicle loan details
- Submit any supporting information (if available)
For help, you can contact the dedicated support line at 1800 318 063.
The final payment amounts will be determined based on your loan details and assessed by the court under the official distribution scheme.
Court Approval and Timeline
While the settlement has been announced, it is still pending court approval. Once approved:
- Claims will be assessed
- Payments will be calculated based on your loan and how much extra interest was charged
- Funds will be distributed as per the scheme determined by the court
| Homepage | sleepauthorities.com |
FAQs – Westpac $81M Car Loan Settlement 2025
Anyone who took a consumer car loan between 1 March 2013 and 31 October 2018 through a dealership tied to Westpac, St George, BankSA, or Bank of Melbourne and was affected by flex commissions.
Flex commissions allowed dealers to set higher loan interest rates in exchange for a bigger commission, increasing loan costs for consumers.
Payouts vary depending on how much extra interest you paid. Final amounts will be determined by the court.
No. You may still register even if you no longer have documentation.
Payments will be issued after the court grants final approval and reviews all registrations.
A deadline will be set once the court process progresses. Check with Maurice Blackburn or call 1800 318 063 for updates.
Stay informed as the court moves closer to finalizing the settlement, and be sure to register if you believe you’re affected. This class action is part of an ongoing effort to make lending practices fairer and more transparent for all Australians.