Westlake Financial Services $1.2M Convenience Fees Settlement, Claim Deadline May 18, 2026
Westlake Financial agreed to pay $1.2 million to settle claims it illegally charged convenience fees between June 2022 and August 2025. If you paid a convenience fee through ACI Payments Inc. when making a Westlake auto loan payment, you can file a claim by May 18, 2026.
What Is the Westlake Financial Settlement About?
Westlake Services LLC, doing business as Westlake Financial Services, faces allegations it violated California debt collection laws by charging borrowers convenience fees when they made payments through ACI Payments Inc.
The class action lawsuit, Klare v. Westlake Services LLC, alleges these fees violated California’s Rosenthal Fair Debt Collection Practices Act—a state law that mirrors federal debt collection protections and prohibits debt collectors from charging unauthorized fees.
Westlake denies any wrongdoing but agreed to settle the case to avoid ongoing litigation costs and uncertainty.
Who Is Eligible to Claim?
You may be eligible if you paid a convenience fee to ACI Payments Inc. when making a payment on your Westlake Financial Services account between June 20, 2022, and August 18, 2025.
If Westlake’s records show you paid these fees, you should have received a settlement notice by mail containing a unique ID and PIN number. This notice confirms your potential eligibility.
The settlement administrator estimates thousands of borrowers qualify, though the exact number of class members hasn’t been publicly disclosed.
How Much Money Can You Receive?
The total settlement fund is $1.2 million. However, the actual amount each claimant receives depends on several deductions and the number of valid claims submitted.
Before distribution, the settlement administrator will deduct:
- Administrative costs for processing claims
- Attorneys’ fees and expenses (typically up to 35% in class actions)
- A service award to the class representative who filed the lawsuit
After these deductions, the remaining net settlement fund will be divided equally among all class members who submit valid claims. The more people who file claims, the smaller each individual payment becomes.
If funds remain after the first distribution and it’s economically feasible, the settlement administrator will conduct a secondary distribution using the same equal-share method.
Without knowing the total number of claimants, predicting exact payment amounts is impossible. However, class action settlements involving convenience fees typically result in payments ranging from $10 to $100 per claimant, depending on participation rates.
What Were the Alleged Violations?
The lawsuit centers on convenience fees—charges added when consumers pay bills using specific payment methods like credit cards or online payment platforms.
California’s Rosenthal Fair Debt Collection Practices Act prohibits debt collectors from collecting fees not authorized by the original loan agreement or permitted by law. The lawsuit alleged that Westlake charged convenience fees without proper authorization.
When borrowers made payments on their Westlake auto loans through ACI Payments Inc., they were charged additional fees for using certain payment methods. The complaint argued these fees violated California law because they weren’t disclosed in the original loan agreements or explicitly permitted under state regulations.
Westlake maintains it did nothing wrong and that its fee practices complied with applicable laws.
How to File a Claim
Filing a claim is straightforward. You have two options:
Online Claim Form: Visit the official settlement website at KlareFeeSettlement.com. You’ll need the unique ID and PIN from your settlement notice to log in and complete the claim form.
Mail-In Claim Form: Download and print the PDF claim form from the settlement website, complete it, and mail it to the settlement administrator.
Required Information: All claimants must provide:
- Full contact information (name, address, phone, email)
- Any alternate names associated with your Westlake account
- Your unique ID and PIN from the settlement notice (for online claims)
If you lost your ID and PIN or didn’t receive a notice but believe you’re eligible, contact the settlement administrator:
- Email: [email protected]
- Phone: 833-417-4970
Provide your full name and mailing address, and they’ll verify your eligibility and provide access to the claim form.
Critical Deadlines
Claim Filing Deadline: May 18, 2026 This is the absolute deadline to submit your claim form. Claims submitted after this date will not be accepted.
Opt-Out Deadline: February 3, 2026 If you don’t want to participate in the settlement and prefer to pursue your own lawsuit, you must opt out by this date. Most class members should not opt out—doing so excludes you from receiving settlement money.
Final Approval Hearing: The court will hold a hearing to grant final approval of the settlement. The date hasn’t been publicly announced as of January 2026.
When Will Payments Be Distributed?
The settlement administrator will distribute payments after the court grants final approval and resolves any appeals.
Here’s the typical timeline:
- Court holds final approval hearing
- Any objections or appeals are resolved
- Settlement becomes final
- Administrator processes all valid claims
- Payments are mailed to claimants
Based on similar class action settlements, payments typically arrive 3-6 months after final court approval. Given the May 2026 claim deadline, payments will likely be distributed in late 2026 or early 2027.
The Parties Involved
Plaintiff/Class Representative: The lawsuit was filed on behalf of all affected Westlake borrowers. The class representative who brought the case will receive a service award from the settlement fund for their efforts.
Defendant: Westlake Services LLC, doing business as Westlake Financial Services, is a major auto finance company that provides loans for vehicle purchases.
Settlement Administrator: A third-party company handles claim processing, payment distribution, and communication with class members. They can be reached at KlareFeeSettlement.com or 833-417-4970.
Court: The settlement requires court approval. The specific jurisdiction overseeing the case hasn’t been widely publicized but likely involves a California court given the allegations under California law.
Common Misconceptions
Many borrowers assume convenience fees are always legal. They’re not. California law restricts what fees debt collectors can charge, and unauthorized fees may violate consumer protection statutes.
Some think filing a claim means admitting Westlake did something wrong. It doesn’t. The settlement explicitly states Westlake denies all allegations, and filing a claim simply means you’re seeking compensation you may be entitled to under the settlement agreement.
Others believe the $1.2 million will be split evenly among all eligible class members. That’s incorrect—only those who file valid claims receive payment. If eligible borrowers don’t file claims, they receive nothing.
Finally, missing the deadline doesn’t mean you can file later. The May 18, 2026 deadline is absolute. Late claims will be rejected.
What to Do If Your Claim Is Denied
If the settlement administrator denies your claim, they must provide a reason. Common denial reasons include:
- Claim filed after the deadline
- Incomplete information on the claim form
- Records showing you didn’t pay convenience fees during the covered period
- Duplicate claim submission
If you believe your claim was wrongly denied, contact the settlement administrator immediately at [email protected] or 833-417-4970. They can review their decision and explain what documentation you need to support your claim.
What Happens If You Do Nothing
If you don’t file a claim by May 18, 2026, you won’t receive any settlement money. However, you also won’t be able to sue Westlake separately for the same convenience fee allegations covered by this settlement.
By not opting out, you’re bound by the settlement’s release—meaning you give up your right to pursue individual legal action for these specific claims, even if you don’t file for compensation.
Frequently Asked Questions
What is the Westlake Financial convenience fees settlement?
Westlake agreed to pay $1.2 million to settle allegations it illegally charged convenience fees when borrowers made payments through ACI Payments Inc. between June 2022 and August 2025. The settlement resolves claims under California debt collection laws.
Am I eligible to claim?
You’re eligible if you paid a convenience fee to ACI Payments Inc. when making a payment on your Westlake Financial Services account between June 20, 2022, and August 18, 2025.
What is the deadline to file a claim?
The claim filing deadline is May 18, 2026. Claims submitted after this date will not be accepted.
How much money can I receive?
The amount depends on how many people file claims. After deducting administrative costs and attorney fees, the remaining funds will be divided equally among all valid claimants. Exact amounts can’t be determined until all claims are processed.
How do I file a claim?
Visit KlareFeeSettlement.com to file online using your unique ID and PIN, or download and mail the PDF claim form. If you don’t have your ID and PIN, contact the settlement administrator at 833-417-4970 or [email protected].
What documentation do I need?
You must provide your contact information and any alternate names associated with your Westlake account. Your unique ID and PIN from the settlement notice are required for online filing.
When will I receive payment?
Payments will be distributed after the court grants final approval and any appeals are resolved. Based on typical timelines, expect payments in late 2026 or early 2027.
Last Updated: January 18, 2026
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
What to Do Next: If you paid convenience fees to Westlake between 2022 and 2025, file your claim before May 18, 2026 to receive compensation.
Stay informed, stay protected. — AllAboutLawyer.com
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
Read more about Sarah