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.

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 details are available online.