LAW firm Slater & Gordon has signed a deal with the Commonwealth Bank of Australia regarding the bank's loans to investors in the failed financial planning company, Storm Financial.
In a legal first, claims by more than 50 clients were settled using the Storm Financial Resolution Process, which had been developed by Slater & Gordon and the CBA.
Slater & Gordon's practice group leader, Damian Scattini, said each of the claims had been assessed on its merits and had taken into account the bank's lending practices at the time of the loan.
The various settlements remain confidential, but the firm said elements of some of the settled cases include cutting loan obligations, reducing interest rates and repayment obligations as well as waiving fees.
"During the settlement negotiations we have concentrated on the individual circumstances of each person, the strength of their legal claims and the impact n them at both the time of the loan and now," said Scattini.
Scattini said it is "reassuring" to see the bank act in good faith. He called on other banks to take a similar approach.
All settled claims have so far involved investment home loans.
Slater & Gordon and the CBA have agreed claims by margin loan borrowers will be tested by the scheme’s expert independent panel before any further offers are made, as it has become clear earlier offers could not be recommended by the law firm to its clients.
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