Bank of Queensland to pay out $17 million in compensation to Storm Financial victims

The Bank of Queensland has agreed to pay $17 million in compensation to victims of the Storm Financial scandal.

The Australian Securities and Investment Commission brought action against a number of banks in 2010 after it alleged the banks breached contracts and broke laws under the Trade Practices Act relating to the collapse of Storm Financial in 2009.

The collapsed company left debts of $88 million, with some customers losing their entire investments and homes through the scandal.

The Australian reports  the gross payment by the bank to settle the legal action will be $19.7 million, including $17 million for customers caught up in the scandal.

Acting chief executive Jon Sutton said customers eligible for compensation would be contacted and had the option of either accepting a settlement or remaining on their current repayment plan.

“We are pleased to have reached a resolution to this long-running issue and will now work towards providing certainty to the customers who were involved,” he said in a statement.

The Commonwealth Bank and Macquarie Bank have previously agreed to compensate customers.

This article first appeared on SmartCompany.