Toyota Dealer Finance (Flex Commissions) Group Proceeding (Class Action)

This matter is a group proceeding (class action) commenced by Jaiden Petrucci on his own behalf and on behalf of consumers who entered into car loan agreements with Toyota Finance Australia Limited (‘Toyota Finance’) between 1 January 2010 and 31 October 2018 for the purpose of acquiring motor vehicles, in which a ‘flex commission’ was paid by Toyota Finance to the car dealer. Flex commissions are payments made by Toyota to the dealer of an amount referable to the difference between a base interest rate set by Toyota Finance on car loans and the higher contract rate set out in the car loan arranged by the dealer with the customer. 

 The further amended writ and statement of claim alleged breaches of the National Consumer Credit Protection Act 2009 (Cth) (‘NCCP Act’), the Corporations Act 2001 (Cth) (‘Corporations Act’), the Australian Securities and Investments Commission Act 2001 (Cth) (‘ASIC Act’) in broad terms complaining about the non-disclosure of the flex commission. The relief sought extends to orders restraining Toyota Finance from charging interest above the base rate, compensation for the damage caused, and orders that the car loans are rescinded or are void.