An in-principle settlement of class actions against 3 banks, subject to Court approval, without admissions of liability, has been announced in releases to the ASX:

• $29 million by Westpac Bank;
• $42 million by ANZ Bank;
• $50 million by Commonwealth Bank of Australia, Colonial Mutual Life and AIA Australia.

UPDATE Settlements approved in the following judgments:

Fordham v Commonwealth Bank of Australia [2023] FCA 1106
Clark v National Australia Bank Limited (No 2) [2020] FCA 652
Kemp v Westpac Banking Corporation (No 4) [2023] FCA 830 
Reilly v Australia and New Zealand Banking Group Limited (No 5) [2023] FCA 896

The class actions filed in 2020 relate to the sale of consumer credit insurance by banks for credit cards and personal loans.

The class actions are based upon allegations that the banks:

• caused customers to make payments as a result of a mistaken belief their policy was compulsory or provided value to them;
• engaged in misleading or deceptive conduct in relation to the sale of the policies to customers;
• engaged in unconscionable conduct in relation to the sale and issue of the policies to customers by, among other things, selling or issuing policies with no or little value;
• unlawfully provided personal advice to some customers who purchased the policies in a bank branch or over the telephone.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.