AVCO class action

In 2003 Maurice Blackburn acted on behalf of over 150 consumers in proceedings in Victoria and New South Wales relating to the failure of Avco Financial Services to disclose financial information concerning credit contracts as required by the Credit Act 1984.

Some of the information that Avco failed to disclose included:

  • Non disclosure of fees and charges
  • Non disclosure of the interest rate
  • Failure to disclose insurance commissions

In the course of the proceedings Maurice Blackburn obtained statements from over 50 clients raising serious allegations concerning Avco clients including:

  • Harassment and other poor collections practices
  • Consumers being unaware that the financial arrangements they entered into included security being taken over their home
  • Excessive interest rates
  • Insurance costs being included in their loan contract either against their wishes or without their knowledge

Settlement

The case for each client of Maurice Blackburn settled on terms not to be disclosed, although we can say that the terms were beneficial to our clients.

Supporting information