Qantas staff credit union group action

Maurice Blackburn acted for individual debtors who had contracts affected by an application brought by Qantas Staff Credit Union Limited under the Consumer Credit Code.

The national application, filed in the NSW Consumer Trader and Tenancy Tribunal on 25 July 2002, was made because QSCU had not disclosed all credit fees and charges payable in connection with loan contracts that were entered into after 1 November 1996.  QSCU estimated that there were 34,798 contracts affected by the application.

Debtors responded to the application to seek compensation for any loss or damage suffered as a result of QSCU's potential Code breaches. The debtors participated  in the application to assist the Tribunal to make a determination on penalty.

Maurice Blackburn analysed its clients' contracts and made various submissions to QSCU such as claiming that QSCU may have made further breaches of the Code including:

• a failure to properly describe the persons to whom loan proceeds are to be paid; and
• a failure to disclose the interest rate applicable to overdrafts and lines of credit.

Maurice Blackburn raised issues with QSCU to seek information on behalf of its debtor clients to enable them to properly respond to the application.

Maurice Blackburn's clients' claims were resolved on 6 October 2005 on confidential terms.