Group Members are defined as:
i. The borrowers, who fall within the definition of “small business” customers contained in the Banking Code of Conduct, and who entered into facility agreements with BankWest prior to 19 December 2008, and whose loan facilities were the subject of a review by BankWest after 19 December 2008, and that were subsequently placed into the Credit Asset Management (CAM) division of BankWest; or
ii. guarantors under the said facility agreements where entered into with BankWest prior to 19 December 2008.
Alleged Conduct Complained Of:
That BankWest designed and implemented a system by which the Group Members’ banking facilities were transferred to CAM, notwithstanding that the businesses of the Group Members were Performing Loans at the time, and there had been no breaches of the terms of the Facility Agreements by Group Members as part of that system,
As part of that system, BankWest hindered or prevented Group Members from performing obligations under the respective Facility Agreement to which they were parties, thereby leading BankWest to write off the loans.
The conduct, or pattern of conduct that was implemented constituted unconscionable conduct on the part of BankWest in its dealings with the plaintiffs and the Group Members, in contravention of s 12CB of the ASIC Act 2001, and/or the general law.