ANZ Settles $85 Million Dispute in Car Loan Commission Case
ANZ Settles $85 Million Dispute in Car Loan Commission Case
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 significant settlement has been reached by financial powerhouse ANZ, totaling $85 million, concerning practices in its former car financing division.
The settlement puts an end to allegations surrounding ANZ's controversial loan commission strategy, which purportedly exploited consumers purchasing vehicles.
Bringing this issue to light, prominent law firm Maurice Blackburn Lawyers had initiated multiple class actions, implicating financial institutions including ANZ, Westpac, St George Finance, and Macquarie Leasing. The accusations centered on the employment of "flex commission" systems, which the Australian Competition & Consumer Commission (ACCC) prohibited in November 2018.
In essence, flex commissions permitted car dealerships to control the interest rates and terms of the vehicle loans they arranged. According to Maurice Blackburn, these provisions incentivized dealerships to inflate interest rates and prolong loan durations to secure more substantial commissions from banks.
"In our role as representatives of the affected group members, we contend that these commissions were not only unfair but also unlawful, leading consumers to incur inflated loan interest costs," reads a statement on Maurice Blackburn's website. "Compensation and other forms of redress are sought for those adversely impacted."
Rebecca Gilsenan, the national head of class actions at Maurice Blackburn, hailed the ANZ settlement as a transformative outcome for impacted customers. "This result represents a crucial victory for borrowers who were left paying undue amounts on their car loans," Gilsenan announced on Friday.
Gilsenan emphasized the expectation of borrowers that dealers, distinct from lenders, should provide the most competitive loan rates. She noted the positive rectification by ANZ as they accorded fairness to their past customers.
This outcome, originating from a report by NewsWire, signals the end of a lengthy legal confrontation for ANZ, occurring alongside forthcoming proceedings involving Westpac and St George Finance and Macquarie Leasing at the Victorian Supreme Court, scheduled to resume late October.
Despite agreeing to the settlement, ANZ clarified that it does not admit liability within any of the cases it resolved. "The Esanda class action concerned flex commissions applied to Esanda car loans arranged by dealers from 2011 till the end of March 2016," mentioned a statement from ANZ. Notably, the bank divested its Esanda Dealer Finance holdings in 2016, showcasing its departure from this business model.
Further, ANZ disclosed a $14 million settlement concerning another legal issue related to superannuation fund investments through its formerly owned entities, OnePath Custodians and OnePath Life.
Conclusively, the described settlements require approval from the court, maintaining ANZ's consistent stance of no liability affirmation. Responses from Westpac and Macquarie Bank remain awaited.
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.
Recent personal and vehicle loan rate updates are reinforcing a practical message for Australian borrowers: the reason you borrow, the asset involved and the strength of your application can still make a meaningful difference to the price you are offered. - read more
The latest Reserve Bank lending-rate data gives Australian small business owners another reason to look beyond the first offer on the table. While business credit has continued to expand through 2026, the price paid by smaller borrowers remains highly dependent on loan structure, security, trading history and lender appetite. - read more
The Reserve Bank’s latest financial aggregates add another chapter to the borrowing story that has been building through 2026. The July update indicates that private sector credit is still expanding, with business lending remaining an important source of momentum. For SMEs, sole traders and self-employed borrowers, this extends the pattern seen in the earlier June credit data: demand for funding has not disappeared, even while interest rates and lender scrutiny continue to shape approval outcomes. - read more
The Reserve Bank’s latest meeting minutes have added more detail to the message borrowers heard after the earlier August rate decision: policy makers are not yet ready to declare victory over inflation, even if some parts of the economy are clearly slowing. For households, sole traders and SMEs, that means borrowing plans still need to be built around current lending conditions rather than expectations of a quick fall in rates. - read more
The Reserve Bank of Australia’s August decision to leave the cash rate unchanged at 4.35% keeps a familiar message in place for Australian borrowers: relief may come eventually, but loan decisions still need to be made on today’s numbers. For households, sole traders and SMEs, the practical issue is not only where rates sit now, but how lenders assess affordability while policy remains restrictive. - read more
When applying for a loan in Australia, it's essential to have a clear understanding of the loan application process. Whether you are applying for a home loan, personal loan, or business loan, knowing the necessary steps and having all the required documents ready can save you time and frustration. - read more
For Australians, the quest to secure a loan can be as nerve-wracking as it is pivotal. Whether it's to finance a home, car, or even to consolidate debts, the outcome can profoundly impact your financial trajectory. Acquiring loan approval is not merely about ticking boxes; it's about presenting a financial profile that reassures lenders of your capacity and commitment to repay. - read more
Australian borrowers have important protections when applying for and managing loans, but they also have responsibilities. This guide explains responsible lending, loan hardship assistance, credit reporting rights, complaints pathways and practical steps to help borrowers stay informed. - read more
Applying for loans online has become a convenient and efficient way to secure funds for various purposes. With just a few clicks, individuals can submit their applications and receive a decision within a short span of time. However, it is important to approach the online loan application process with caution to avoid common mistakes that could potentially affect the outcome of the application. - read more
Personal loans are a financial tool that many young professionals consider when they need extra funds. Whether it's for consolidating debt, covering unexpected expenses, or making a big purchase, personal loans can provide the flexibility you need to manage your finances effectively. - read more
Need Help Finding a Loan?
Find out now if you qualify and
compare rates, offers and options from multiple lenders - without a credit check!
No comments yet. Be the first to share your thoughts.