In a statement, the regional bank’s managing director Mike Hirst welcomed the court’s decision, saying it brings closure to the five-year legal dispute.
The statement confirms that under the terms of the settlement, loans with the bank are valid and enforceable, accrued standard interest on loans is payable and overdue interest has been waived.
“The bank’s agreement to waive overdue interest acknowledges the protracted nature of the court proceedings and the goodwill of the bank in seeking to work with borrowers to finalise this matter,” Mr Hirst said.
“Whilst we’d prefer prompt payment of the debt, we understand some borrowers might not be in a position to pay the full amount in that time frame.
“We understand this has been a difficult process for all parties concerned, but we remain committed to providing a high standard of service and working with people to ensure the loans are repaid in full over time.”
The payment of the $23.55 million figure to approximately 2,000 of the bank’s borrowers will now go ahead, but will primarily be used to reimburse legal fees.
