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.
A Melbourne-based legal outfit, Echo Law, has officially initiated legal proceedings against Toyota Finance in response to allegations of excessive interest rates on car loans.
The crux of the issue lies in a practice known as "flex commissions" deemed unfair due to a lack of transparency, potentially impacting a multitude of consumers.
The legal challenge claims that from 2010 to 2018, Toyota Finance Australia and its affiliated dealers engaged in secretive practices allowing dealers to inflate interest rates, thereby earning higher commissions. This scheme, according to the firm’s analysis, resulted in customers paying more than what was necessary for their vehicle purchases, without their knowledge.
A flex commission structure worked on a basic level, wherein the finance company set a base rate, but permitted the dealer to hike that rate at their discretion. Consequently, the higher the interest and the longer the repayment term, the more lucrative the commission for the dealership. Importantly, this mechanism was employed without the customer's informed consent.
The outlawing of flex commissions in 2018 was a step forward in consumer protection. However, the legacy of their use has led to various class actions aimed at recovering undue expenses borne by customers, with Echo Law's decision to sue Toyota as its latest instance.
Joining Echo Law are fellow claimants represented by Maurice Blackburn lawyers, who have taken action against numerous finance institutions including ANZ and Macquarie Leasing, suggesting a widespread need for consumer redress affecting over a million Australians to date.
Car owners who financed their vehicle through Toyota Finance within specified periods and had their loan facilitated by a dealership may qualify for this recourse. Echo Law’s Andrew Paull expressed that the financial repercussions for those subjected to these commissions are substantial, running into the substantial sums.
While registration for the class action is complimentary via Echo Law's portal, the broader sentiment within the industry remains cautious regarding dealership-facilitated loans. Founding expert Julian Finch of Finch Financial Services warned that dealers often bypass stringent lending parameters, which could disadvantage buyers in various forms. These could include a slew of service charges and marketing-related fees that inflate the cost of borrowing directly from dealerships.
In contrast, competitive financial offers from other lenders are spotlighted for their straightforward and cost-effective car loan terms-featuring interest rates as low as 4.99% and devoid of numerous ancillary costs typically levied with such loans.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
The Reserve Bank of Australia's latest credit figures point to a continuing theme for households: Australians are still using personal credit as budgets remain under pressure. While housing and business lending often dominate the headlines, movements in personal credit are important because they can reveal how consumers are funding vehicles, renovations, travel, debt consolidation and unexpected expenses. Find out now if you qualify and compare rates, offers and options from multiple lenders - without a credit check! - read more
Australia's personal loan market is showing a clearer split between borrowers who qualify for sharper advertised rates and those facing higher pricing because of credit history, income uncertainty or limited documentation. Recent lender and comparison-market updates point to a widening difference between the lowest promotional offers and the rates many applicants may actually receive after assessment. - read more
Australia's latest monthly new-car sales reporting has reinforced a trend caravan buyers cannot afford to ignore: the tow vehicle is becoming just as important to the finance conversation as the caravan itself. Utes, large SUVs and four-wheel drives continue to attract strong buyer interest, helped by touring lifestyles, work-and-family versatility and the need for higher towing capacity. - read more
Recent Australian marine market coverage is putting trailerable boats back in the spotlight, with new model activity, dealer promotions and buyer interest all pointing towards vessels that are easier to store, launch and tow. For many households, that practicality is a major part of the appeal. A trailerable fishing boat, bowrider or compact cruiser can offer more flexibility than a marina-based vessel, particularly for owners who want to explore different waterways without committing to permanent berth costs. - read more
Australia's new-vehicle market is entering a more complicated pricing phase as the New Vehicle Efficiency Standard starts to influence how car makers allocate stock, promote lower-emission models and manage higher-emission vehicles. For buyers, the policy is not just an environmental headline. It may gradually shape the cars that are easiest to find, the incentives attached to them and the total amount that needs to be financed. - read more
If you're running a business in Australia, choosing the right commercial vehicle loan can be pivotal to your success. Whether you're a small business owner needing a delivery van or a large company expanding your fleet, understanding your financing options is crucial. - read more
Securing finance for any significant purchase can be a challenge, especially when it comes to acquiring a truck for business purposes. Coupled with a less-than-perfect credit score, this task can seem daunting for many Australians. The ripple effects of financial constraints can impede business operations, affecting the lifeline of commercial ventures that rely on transportation. - read more
Buying a used truck can be a practical way to expand or start a transport operation, but finance-related checks are essential before you commit. This guide explains PPSR searches, outstanding finance, private sale documents, lender valuation requirements, insurance and settlement steps for Australian buyers. - read more
The commercial vehicle market in Australia is a cornerstone of the transportation and logistics industries, with trucks playing an indispensable role. Whether for long-haul deliveries across the vast distances of the continent or for urban distribution, trucks are critical assets for businesses and entrepreneurs alike. This significance makes it essential for commercial vehicle buyers to understand the dynamics of truck resale values in Australia. - read more
As a trucking business owner in Australia, finding the right insurance is crucial to the protection of your business. To achieve this, it is important to first understand your specific business needs. Here are some factors to consider: - read more
Start Here
Get a free truck loan eligibility assessment and compare truck finance and leasing options
without accessing your credit file!!
Knowledgebase
Personal Loan: a loan that is granted for personal use, normally unsecured and granted by a lender on the borrower's integrity and capacity to repay
No comments yet. Be the first to share your thoughts.