July 17 (Reuters) – Westpac Banking Corp. said Friday that it had been sentenced to class action on commissions paid to car dealers between 2013 and 2018 which are presumed to have led to higher interest rates on loans. automotive.
Flexible commissions have been banned in Australia since 2018.
The class action, filed by law firm Maurice Blackburn, says that Westpac and St George Finance Ltd have allowed car dealers to raise loan rates to earn these fees from March 1, 2013 to October 31, 2018.
Consumers have in some cases been charged more than three times the established base interest rate, Maurice Blackburn said in a statement.
The second Australian bank said that the amount of compensation claimed has not been specified and will defend itself against the claim.
The bank acknowledged that other similar complaints may be filed. (Reporting by Nikhil Kurian Nainan in Bangalore; Editing by Leslie Adler)