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.
The Clean Energy Finance Corporation (CEFC) has announced a partnership with Hyundai Capital Australia (HCAU) to provide discounted finance rates on eligible Hyundai and Kia electric vehicles (EVs). This initiative aims to reduce the upfront costs associated with EV ownership, making it more accessible for Australian households and small businesses. - read more
MG Motor Australia has announced a substantial price reduction for its HS Super Hybrid range as part of the M-Genius End-of-Financial-Year (EOFY) campaign. Until June 30, 2026, the plug-in hybrid SUV is available with a $5,000 discount, bringing the driveaway price to $42,990 for the Excite variant and $46,990 for the Essence variant. This represents a saving of approximately 10% off the previous prices. - read more
In 2025, Australia witnessed a significant surge in electric and hybrid vehicle financing, reaching a total of $7.37 billion-a 20% increase from the previous year. This growth indicates a substantial shift in consumer preferences towards cleaner transportation options. - read more
In a remarkable development, fintech lender MONEYME has observed a substantial 90% month-on-month increase in electric vehicle (EV) loan applications from February to March 2026. This surge underscores a significant shift in Australian consumer behaviour towards electric vehicles, driven by escalating fuel prices and growing environmental awareness. - read more
The landscape of car purchasing in Australia is undergoing a significant transformation, driven by the rapid adoption of digital finance solutions. Traditional methods of securing car loans are being replaced by streamlined online processes, offering consumers faster approvals and enhanced convenience. - read more
Finding the right car loan in Australia can be just as critical as selecting the car itself. Car finance, though a common undertaking, involves nuanced decisions that can have a significant impact on your financial future. - read more
The Australian automotive landscape has witnessed a significant transformation with the rise of online car sales. The concept of browsing, selecting, and purchasing a vehicle through digital platforms has gained immense popularity, offering consumers a vast array of choices at their fingertips. - read more
Finding an affordable car finance option can make the dream of owning a vehicle a tangible reality for many Australians. It’s about understanding the intricacies of the loan market, interest rates, and finding a plan that aligns with your financial prospects and constraints. In a society built on the convenience of mobility, securing a car that meets both your needs and your budget is essential. - read more
Navigating the car loan landscape in Australia can feel like a daunting task. With a vast array of options available, choosing the right car loan can significantly impact your financial well-being. Understanding the fees associated with car loans is crucial, as they play a significant role in the total cost of the loan. - read more
Car loan refinancing involves replacing an existing car loan with a new one, usually to lower the interest rate, reduce monthly payments, or modify the loan term. In Australia's fluctuating economic landscape, refinancing can be a strategic financial decision for borrowers looking to adjust their finances to more favorable terms. - read more
Need Help Finding a Loan?
Get a free car loan eligibility assessment and compare offers tailored
specifically to your circumstances.
All finance quotes are provided free (via our secure server) and without
obligation. We respect your
privacy.
Knowledgebase
Capital Gain: The profit realized from the sale of a capital asset, such as stock or real estate, where the sale price exceeds the purchase price.
