ASIC is overseeing a refund process to approximately 2,000 St George Bank (St George) customers who were not provided volume rebates by the bank when recovering legal costs.

The Victorian Court of Appeal raised concerns in the matter of Boman Irani Pty Ltd & Ors v St George Bank Limited [2008] VSCA 246 (the Judgment), about St George’s practices when recovering legal costs from customers. ASIC was asked by the Court to consider this matter as well as the issue of volume rebates more broadly.

Volume rebates are reductions that service providers apply to amounts owed by customers when they perform work above a particular threshold.

ASIC asked St George about the extent of the conduct and the appropriate remedial action for affected customers. St George advised approximately 2,000 customers were affected by their failure to pass on volume rebates between 1 October 2002 to 30 September 2005 and was committed to a refund process. Since then, St George has written to the affected customers it can locate to advise them of the refund and provide a refund cheque.

ASIC has also raised the implications of the Judgment with industry bodies, following concerns that the conduct could be widespread in the banking and financial community.

ASIC advised industry participants to review their practices where they receive, or have previously received, volume rebates from their solicitors for legal work performed, to ensure that these rebates are passed on to their customers.

Further information

Any customers with concerns about the refund of volume rebates should contact their St George Relationship Manager or call the St George Customer Contact Centre on 133 800.