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 InvestorDaily sister title 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.
At the time, Shine national class actions leader Jan Saddler said more than 100,000 Westpac customers could be affected by the alleged misconduct which saw clients overcharged between 4.5 per cent and 10 per cent in annual premiums, after the bank’s aligned advisers allegedly “funnelled” customers into the bank’s expensive branded life insurance products.
“We allege Westpac quietly and systematically pilfered excessive fees from their own customers to make millions in profits at the expense of those customers,” Ms Saddler said.
The law firm had stated that advice customers involved in the class could get between $1000 and $10,000 compensation each.
