CBA in mediation with Storm clients
The Commonwealth Bank (CBA) is trying to avoid a lengthy litigation process with former clients of Storm Financial by instituting a dispute resolution process. The bank is working with Slater and Gordon, which is representing many former Storm clients, to institute the process.
A statement by Slater and Gordon affirmed that the CBA would review clients' circumstances on a case-by-case basis, including full disclosure of documents relevant to each client. An initial group of Slater and Gordon clients have been selected at random to take part in the process.
Former High Court Justice Ian Callinan will work as an independent arbitrator if CBA and former clients cannot reach an agreement.
The CBA said any client who is dissatisfied with the dispute resolution process is free to pursue other legal outcomes, according to a statement released by the bank.
Slater and Gordon practice group leader Damian Scattini said there had been no change in previous statements from the Bank of Queensland, but the door was still open for them. Slater and Gordon has not called on Macquarie Bank for comment.
The Bank of Queensland is believed to have threatened to sue former Storm clients for misrepresenting their income, but the head of corporate affairs Caroline Dunworth denied the allegation. BOQ has said it is not reviewing its lending practices in relation to former Storm clients.
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