Truck Loans Australia :: News
SHARE

Share this news item!

Westpac Resolves Auto Finance Class Action with $81 Million Settlement

Addressing Past Lending Practices in Australia's Car Loan Sector

Westpac Resolves Auto Finance Class Action with $81 Million Settlement?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Australia's Westpac Banking Corporation has reached a settlement of A$130 million (approximately $81.84 million) to resolve a class action lawsuit concerning its auto finance practices.
The lawsuit, initiated by law firm Maurice Blackburn in 2020, alleged that between March 1, 2013, and October 31, 2018, Westpac and its subsidiary, St George Finance, permitted car dealers to increase interest rates on car loans to earn higher commissions.

This settlement, pending court approval, marks the conclusion of litigation related to the Royal Commission for Westpac. The bank ceased paying such 'flex commissions' in 2018 and stopped new lending through its auto finance business in 2022. The settlement amount was largely accounted for in Westpac's financial update for the first quarter of 2025.

Similarly, in October 2024, ANZ Bank settled a related class action for A$85 million over car loans issued between 2011 and 2016. These settlements highlight the ongoing scrutiny and legal challenges faced by major Australian banks regarding their past lending practices.

For consumers, these developments underscore the importance of transparency and fairness in car financing. Borrowers are encouraged to thoroughly review loan terms and seek clarity on any commissions or fees associated with their loans. Additionally, staying informed about regulatory changes and legal actions in the financial sector can help consumers make more informed decisions when financing vehicle purchases.

Published:Saturday, 1st Nov 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

ASX 200 Declines Amid RBA Rate Hold and Inflation Concerns
ASX 200 Declines Amid RBA Rate Hold and Inflation Concerns
04 Nov 2025: Paige Estritori
The Australian stock market witnessed a downturn on Tuesday as the Reserve Bank of Australia (RBA) opted to leave interest rates unchanged, while cautioning about the potential for persistent inflation beyond the preferred range. The ASX 200 dropped by 81.1 points, or 0.91%, closing at 8813.7. Meanwhile, the All Ordinaries index similarly decreased by 84.3 points, or 0.92%, settling at 9098.2. - read more
Australia's Housing Market and Rental Crisis Intensify Amidst Policy Changes
Australia's Housing Market and Rental Crisis Intensify Amidst Policy Changes
03 Nov 2025: Paige Estritori
The introduction of the Albanese government's 5% deposit scheme for first home buyers at the start of October has led to a noticeable uptick in housing prices. According to Cotality’s latest data, October saw the strongest rise in house prices since June 2023, with a 1.1% increase that equates to a 2.9% rise over the quarter in Australia's major cities. - read more
Austal's $100 Million Boost for U.S. Shipbuilding Expansion
Austal's $100 Million Boost for U.S. Shipbuilding Expansion
03 Nov 2025: Paige Estritori
Austal Limited, a leading Australian shipbuilder, has secured a substantial $100 million loan from Export Finance Australia (EFA) to bolster its shipbuilding operations in Mobile, Alabama. This strategic funding is earmarked for the development of the Final Assembly 2 (FA2) project, a significant initiative aimed at enhancing Austal's capacity to construct vessels for the U.S. Navy and Coast Guard. - read more
Marinex Underwriting: New Player in Australia's Marine Insurance Sector
Marinex Underwriting: New Player in Australia's Marine Insurance Sector
03 Nov 2025: Paige Estritori
Marinex Underwriting, a newly established marine underwriting agency, has officially launched in the Australian market, aiming to address the complex insurance needs of the marine sector. Backed by global specialty insurance distributor Amwins, Marinex is a shared equity agency co-founded by industry veterans Janelle Karnib, Chris Kelly, and Ainsley Smith. - read more
Australia's Strategic Choice: Japan's New FFM for Naval Expansion
Australia's Strategic Choice: Japan's New FFM for Naval Expansion
03 Nov 2025: Paige Estritori
In a significant move to bolster its naval capabilities, Australia has officially selected Japan's New FFM design for its general purpose frigate program. This decision, announced by Defence Minister Richard Marles on August 5, 2025, marks a pivotal step in enhancing the Royal Australian Navy's operational capacity. - read more


Truck Loans Articles

The Commercial Buyers Guide to Buying a Used Truck in Australia
The Commercial Buyers Guide to Buying a Used Truck in Australia
With the evolution of the logistics industry and small businesses gaining momentum in Australia, the market for used trucks has witnessed substantial growth in recent years. This surge is a testament to the pivotal role commercial vehicles play in driving the economy forward, keeping supply chains agile and businesses thriving. - read more
Essential Document Checklist for Truck Loan Approval: What You Need to Know
Essential Document Checklist for Truck Loan Approval: What You Need to Know
Getting the right truck loan can be essential for business owners who rely on commercial vehicles. These loans cover a variety of commercial vehicle types and are crucial for ensuring your business operations run smoothly. Truck loans, specifically, provide the necessary finances to purchase trucks, which are indispensable in industries like logistics and delivery services across Australia. - read more
From Small to Big: Financing Your Truck Expansion in Australia
From Small to Big: Financing Your Truck Expansion in Australia
Expanding your truck fleet is a critical step in driving business growth. For many small businesses, increasing the number of commercial vehicles means accessing new markets, delivering goods more efficiently, and ultimately, boosting profitability. In the competitive Australian market, staying ahead requires not just maintaining but expanding your transport capabilities. - read more
Interest Rates, Terms, and Fees: What to Look for in Commercial Vehicle Loans
Interest Rates, Terms, and Fees: What to Look for in Commercial Vehicle Loans
Choosing the right commercial vehicle loan is a pivotal decision for any business aspiring to expand its transportation capabilities. For many, commercial vehicles are integral to daily operations, and securing the best financial arrangement to acquire these assets can significantly impact the bottom line. - read more
Understanding Credit Scores and Their Impact on Your Commercial Vehicle Loan Terms
Understanding Credit Scores and Their Impact on Your Commercial Vehicle Loan Terms
Finding the right financing for a commercial vehicle in Australia can be a critical step for businesses and individuals alike. Whether it's for a single van or an entire fleet of trucks, understanding the intricacies of commercial vehicle loans is key to securing a deal that aligns with your financial goals. One factor that stands out in determining your loan terms is the credit score—a numerical representation of your creditworthiness. - read more


Start Here

Get a free truck loan eligibility assessment and compare truck finance and leasing options without accessing your credit file!!
Loan Amount:
Postcode:

Quotes are offered free & without obligation. We respect your privacy.

Knowledgebase
Personal Loan:
A personal loan is a loan provided to an individual or individuals (as opposed to a business) and that can be generally be used for a variety of purposes subject to the approval of the lender.