Westpac settles life insurance class action
Westpac settles life insurance class action
The major bank has settled a class action filed against it by Shine Lawyers relating to the mis-selling of overly expensive insurance products by its aligned advisers.
A
A
In a statement, Westpac said it had agreed to settle the action relating to “premiums paid for certain insurance policies taken out with Westpac Life Insurance Services Limited between 2011 and 2017”.
The bank said the settlement was capped at $30 million and remained subject to approval by the Federal Court.
The class action, previously reported on by ifa in August last year, was filed by Shine in 2017 and relates to customers who were sold life insurance by Westpac, BankSA, St.George Bank, Bank of Melbourne and BT Advice.
Mortgage Business
Major bank settles class action for $30m By Reporter 29 April 2021
A big four bank has agreed to pay up to $30 million, without any admission of liability, to settle a class action relating to life insurance.
In 2017, class action specialists Shine Lawyers commenced a class action against Westpac Banking Corporation (Westpac) alleging that the bank charged its customers more interest on life insurance policies than they would have been able to access from independent financial advisers.
According to the law firm, Westpac and its subsidiaries St George, Bank of Melbourne, BankSA and BT customers were allegedly charged either 4.3 per cent and/or 9.09 per cent more for insurance policies taken out with Westpac Life Insurance Services Limited between 2011 and 2017 than they would have been charged if they obtained