In a statement released on Tuesday, Shine said it was seeking customers who were sold life insurance through Westpac, St George Bank, Bank of Melbourne, BankSA or BT Advice from February 2011 onwards to be part of the class.
The firm filed suit against Westpac in the Federal Court in 2017, alleging Westpac-aligned advisers had “funnelled” customers into the bank’s expensive branded life insurance products.
Shine national class actions leader Jan Saddler said the firm believed more than 100,000 people could be affected by the alleged misconduct, which saw clients overcharged between 4.5 per cent and 10 per cent in annual premiums.
“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 behaviour by the banks is a slap in the face to hard working Australians and not only does Westpac need to be called out for its premium rort, but it also needs to compensate its customers.
“This case allows people to fight for their money back with the strength in numbers afforded to them by a class action.”
A spokesperson for the law firm said the case would reach the mediation stage imminently and the firm “[hoped] to put Westpac on notice heading into those negotiations”.
The spokesperson said eligible advice customers could expect to get between $1,000 and $10,000 in compensation depending on the success of the mediation process.
“It’s a significant amount to many people, especially during this time of COVID,” the spokesperson said.
Here we go again – lawyers chasing ambulances – i am a customer of the CBA, i saw a FP there in the 2014 and expected to be sold a CommInsure product and did, i then chose to shop it around a few years later and managed to get it cheaper via Zurich – i have absolutely no problems with the advice i was given as it was fine – if i wanted to shop it around at the time i would have gone to an IFA. Pretty simple but these days we blame the advisers for everything and the consumer takes absolutely no accountability for their actions