Offer is a hard pill to swallow, say Storm victims

THE settlement offer from the Commonwealth Bank received scant respect from Storm Financial investors yesterday, despite substantial compensation being approved by an independent panel of eminent legal professionals.

Mark Weir, a co-chairman of the Storm Investors Consumer Action Group said the details of a margin loan compensation package were a "bitter pill to swallow" for Storm investors.

He said he would urge members of his investor support group to seriously consider their positions before agreeing to the offer.

Mr Weir said a recent judgment against Leveraged Equities and Macquarie Group that found the banks should restore the portfolio of a margin loan investor was a precedent that should be looked at by the independent panel.

Damian Scattini, a lawyer with Slater & Gordon, said the resolution scheme included consideration of the judgment, with a possibility for margin loan customers to achieve the same outcome. But he said Storm investors would have to convince the panel they were able to meet several margin calls with ready cash and would have tipped more money in when the market was plummeting.

Sean McArdle, a Coolum police officer and Commonwealth Bank customer who has said he was ruined for the sake of a 30c phone call for a margin call, said he was party to a legal case being prepared by other solicitors, Levitt and Robinson. He said the settlement principles showed Commonwealth Bank was "using a class action lawyer to try and sell what is essentially a disgraceful attempt to buy their way out of legal culpability".