Class action settlement approved

11 June 2021

If you objected to the settlement, you’ll have another opportunity to opt out of the class action.

The Federal Court of Australia has approved the Income Compliance class action settlement. This means the matter won’t go to trial.

Group members who objected to the settlement terms may wish to opt out of the class action. We’ll write to objecting group members with opt out information in the next two months.

We’re aiming to deliver settlement payments as quickly as possible to eligible group members, but the settlement process will take time.

We have to complete a number of steps before we can start making payments. These steps are:

  • Working out who is eligible for a settlement payment
  • Writing to all group members to let them know if they’re eligible for a settlement payment
  • Working out how much to pay each eligible group member.

We plan to start sending letters to all group members in late 2021. We’ll let customers know how much they’ll get and start making settlement payments in early 2022.

How much the settlement payments will be

The approved settlement amount is $112 million.

Gordon Legal’s court-approved fees will be deducted from this.

The remaining funds will be paid to eligible group members.

Not every group member will be eligible for a settlement payment. Each eligible group member will have a different payment amount.

The payment will take into account:

  • when you paid money towards eligible debts
  • how much you paid
  • when you were refunded.

The settlement payment is in place of interest you could’ve earned on the debt repayments you made.

This means people who paid us back more money and were without their money for longer will get a larger settlement payment.

What you need to do

If you’re a group member who objected to the settlement, we’ll send you a letter in the coming weeks. The letter will tell you how you can opt out of the class action, if you wish.

If you’re a group member who didn’t object, there’s nothing you need to do right now. We’ll contact you in a few months with more information.

Where to get more information

Read more about who’s eligible for a class action settlement payment.

Page last updated: 25 June 2021