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Plaintiff law firm Maurice Blackburn Lawyers has filed the first class action against the major bank since the release of the final banking royal commission report.
The Federal Court action will see Maurice Blackburn Lawyers taking on Westpac for the provision of loans in breach of responsible lending laws.
It was noted that the class action was filed on behalf of people who were given unsuitable loans by Westpac in breach of responsible lending obligations after 1 January, 2011.
Maurice Blackburn’s class actions principal Ben Slade said “we have filed a class action against Westpac to stand up for those affected by this irresponsible lending and to bring some pressure to bear on a banking sector that is notoriously unrepentant for flouting the law”.
Mr Slade had noted that despite widespread criticism of its lending practices from the corporate regulator, Westpac has remained unrepentant.
“Westpac is required to comply with strict obligations which are specifically designed to protect consumers from irresponsible lending and the risk of financial hardship,” he explained.
“This case will seek to prove that Westpac failed to comply with these obligations and that this failure caused substantial losses for many consumers,” Mr Slade continued.
“Westpac’s response to Commissioner Hayne’s findings in the financial services royal commission, and to the ongoing proceedings brought by ASIC in relation to Westpac’s responsible lending obligations does not reveal any acceptance by Westpac of its obligations to compensate those who have suffered, and are suffering, at the hands of the company.”
According to the firm, Michelle and Ian Tate will be leading the class action, after having endured serious financial difficulties as a result of Westpac’s irresponsible lending practices.
Maurice Blackburn has alleged that Westpac failed to verify, as it is obligated to do, information concerning the Tate’s financial circumstances as provided to the bank by a broker.
The firm noted that Westpac lent the Tates – a family of five with one regular income – in excess of $1.8 million across five properties from 2008-2016.
According to Maurice Blackburn, the family will now lose all their properties save for a block of land and have suffered significant loss in the process.
“Dealing with Westpac has devastated us,” said Ms Tate.
“Instead of striving for financial independence, we are back living pay cheque to pay cheque, tax return to tax return,” she said.
“It is worse than being back to square one,” Ms Tate concluded.
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Grace Ormsby
