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Westpac, which also supplies car loans through the St George and Bank of Melbourne brand names, was actually the lender in the limelight over flex earnings.

After determining difficulties with flex commissions in a 2015 audit report, Westpac introduced a limit regarding income dealers could demand — but it consistently use the flex payment construction, indicating the discretion to create the speed above the base price or more on the cover nonetheless sits because of the supplier.

Under questioning by Commissioner Kenneth Hayne, Westpac professional Phillip Godkin admitted industrial reasons happened to be behind Westpac’s decision to continue to make use of flex commissions until November.

“the matter within this market is, in terms of the method in which we compete, is the fact that it might be, within view, impossible to stop they unilaterally without going from the industry entirely,” demonstrated Mr Godkin.

The query Turnbull failed to desire

The PM spent more than a-year opposing calls for a royal percentage — in the finish, opposition ended up being useless.

Westpac echoed that sentiment in submission to the royal payment’s first round of hearings, saying: “The issue is not addressed by individual lenders leaving the exercise”.

“that will just leave the market industry to other individuals who didn’t abandon the practise. The result for people is the same,” the submission said.

2 days next distribution was made, Westpac chief executive Brian Hartzer got lauding the lender’s position on flex earnings.

“we have regularly backed the scene that repayments and payment arrangements for sellers in car funding should changes,” the guy mentioned in an address.

“we advocated for elimination of flex earnings and released our personal cover before this does occur.”

Consumer suggest Gerard Brody doesn’t consider the decision to carry on flex earnings until ASIC’s bar requires impact is good adequate.