Westpac, that also provides car loans through the St George and lender of Melbourne brands, got the financial institution from inside the limelight over flex income.

Westpac, that also provides car loans through the St George and lender of Melbourne brands, got the financial institution from inside the limelight over flex income.

After determining difficulties with flex income in a 2015 audit document, Westpac launched a cap in the profits sellers could demand — but it consistently use the flex fee framework, indicating the discretion to create the pace over the base rates or more to the cover nevertheless consist making use of dealership.

Under questioning by administrator Kenneth Hayne, Westpac manager Phillip Godkin accepted commercial reasons happened to be behind Westpac’s decision to keep to utilize flex commissions until November.

“the condition inside marketplace is, with regards to the manner in which we contend, is that it will be, within view, impractical to quit it unilaterally without going away from the marketplace completely,” explained Mr Godkin. […]