In a statement, the bank said it had agreed to pay $30 million to settle the class action, pending Federal Court approval.
“Westpac Group has agreed to settle a class action relating to premiums paid for certain insurance policies taken out with Westpac Life Insurance Services Limited between 2011 and 2017,” the company said.
“The group has resolved the matter without any admission of liability,” Westpac said.
The class action 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 $1,000 and $10,000 compensation each.
