(25 February 2010 – Australia) The Commonwealth Bank of Australia has announced the terms surrounding the compensation being provided to Storm Financial clients under what is being called a ‘historic resolution scheme’.The Townsville Bulletin reported that law firm Slater & Gordon, along with the bank, announced that clients, depending on their individual circumstances, would receive cash compensation and or concessions including reduced loan balances and interest rates, interest refunds and in some cases permanent tenancy arrangements.
Damian Scattini, lawyer, Slater & Gordon, said the outcome for clients was fair and in some cases would be ‘life-changing’.
Mr Scattini said the agreed compensation principles would deliver a quick, fair, transparent and commercially appropriate resolution of the claims against the bank.
Mr Scattini said Slater & Gordon believed the compensation principles would deliver outcomes for clients consistent with what they could hope for if they took the bank to court, however said that it expects some clients would not be offered compensation.
Slater & Gordon urged other banks to use the framework for the CBA settlement, saying it was more sensible than the ‘litigation Armageddon’ banks such as Bank of Queensland were pursuing, the Townsville Bulletin reported.
The firm is taking legal action against the Bank of Queensland for clients in NSW and Queensland.