$1.2M Westlake Financial Services illegal fees class action settlement

Westlake Financial Services has agreed to a $1.2 million class action lawsuit settlement to resolve claims it charged illegal fees for using certain payment methods on loans.

The settlement benefits individuals with a retail installment contract assigned to Westlake who paid a convenience fee to ACI Payments in connection with a payment on their Westlake account between June 20, 2022, and Aug. 18, 2025.

Plaintiffs in the class action lawsuit claim Westlake charged illegal fees when borrowers made payments on their accounts through ACI Payments. These fees allegedly violated California debt collection laws.

Westlake Financial Services is an auto finance company that provides loans for car buyers.

Westlake has not admitted any wrongdoing but agreed to a $1.2 million settlement to resolve the class action lawsuit.

Under the terms of the Westlake settlement, class members can receive a cash payment. Exact payment amounts will vary depending on the number of participating class members and the amount they paid in fees.

Class members who have an outstanding balance on their Westlake account can choose to receive their settlement payment as an account credit. Other payment options include direct deposit, PayPal, Venmo, Zelle and other electronic payment methods.

The deadline for exclusion and objection is Feb. 3, 2026.

The final approval hearing for the Westlake bank fees settlement is scheduled for April 16, 2026.

To receive a settlement payment, class members must submit a valid claim form by May 18, 2026.

Who’s Eligible

All natural persons with a retail installment contract assigned to Westlake who, between June 20, 2022, and Aug. 18, 2025, paid a convenience fee to ACI in connection with a payment they were making on a Westlake account, where the payment was made either on the due date, after the due date or where the due date is unknown.

Potential Award

TBD

Proof of Purchase

N/A

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

05/18/2026

Case Name

Klare v. Westlake Services LLC d/b/a Westlake Financial Services, Case No. 2:23-cv-06386-FMO (C.D. Cal.), in the United States District Court for the Central District of California

Final Hearing

04/16/2026

Settlement Website

KlareFeeSettlement.com

Claims Administrator

Westlake Settlement Administrator
P.O. Box 25226
Santa Ana, CA 92799
[email protected]
833-417-4970

Class Counsel

Jonathan R. Marshall
Denali S. Hedrick
BAILEY & GLASSER LLP

David D. Bibiyan
BIBIYAN LAW GROUP P.C.

Defense Counsel

David Gettings
Jonathan Kenney
Sarah Reise
Katalina Baumann
TROUTMAN PEPPER LOCKE