Westlake Financial Settlement: Cash Payment for ACI Convenience Fees by May 18, 2026

If you financed a vehicle through Westlake Financial Services and were charged a convenience fee for making a payment through ACI Payments, Inc., between June 20, 2022, and August 18, 2025, you may be entitled to a cash payment from a $1.2 million class action settlement. The deadline to file your claim is May 18, 2026 — and Westlake's records have already identified most class members, so a notice may already be in your email inbox or mailbox.

The lawsuit, Klare v. Westlake Services, LLC d/b/a Westlake Financial Services, alleged that the convenience fees Westlake charged borrowers for making payments through ACI Payments — sometimes called "pay-to-pay" fees — violated California debt collection law. Westlake denies the allegations but agreed to settle. The court granted preliminary approval on November 12, 2025, and the final approval hearing was held April 16, 2026.

Who Qualifies for the Westlake Settlement

You are a class member if all of the following apply: you are a natural person (an individual, not a business entity); you held a retail installment contract assigned to Westlake Financial Services; and you paid a convenience fee to ACI Payments, Inc. in connection with a payment on your Westlake account between June 20, 2022, and August 18, 2025. The payment must have been made on or after the due date — or where the due date is unknown.

If your payment was made before the due date and ACI charged a convenience fee, that payment is not covered by this settlement. The class is limited to fees connected to on-time-or-late payments, where California law restricts convenience charges by debt collectors.

Westlake's records have identified Class Members who may be entitled to a settlement payment, and notices have been sent on a rolling basis. If you received a notice, you should already have a unique ID needed to file your claim online.

What You Can Receive

Class members who file a valid claim form will receive a per-capita share of the net settlement fund — meaning the $1.2 million fund, after deductions for attorney fees, administrative costs, and service awards to class representatives, divided equally among all valid claimants.

The exact per-person payout depends on the number of valid claims filed. The settlement is non-reversionary, which means every dollar in the net fund is allocated to claimants — none returns to Westlake. Filing earlier does not increase your share, but filing on time is the only way to receive any payment.

Why This Settlement Exists: California Debt Collection Limits on Convenience Fees

California law restricts the fees that debt collectors and creditors can charge consumers in connection with debt collection. California's Rosenthal Fair Debt Collection Practices Act (RFDCPA), Cal. Civ. Code §§ 1788–1788.33, mirrors many of the protections in the federal Fair Debt Collection Practices Act and applies to original creditors as well as third-party debt collectors.

The complaint in Klare v. Westlake alleged that the convenience fees charged by ACI Payments — a third-party processor used to make payments on Westlake auto loans — were not authorized by the underlying retail installment contracts and exceeded what California law permits. The plaintiffs framed these as "pay-to-pay" fees: charges imposed simply for the act of making a payment, on top of the principal and interest already owed.

Westlake denies wrongdoing and is not admitting fault by settling. The settlement resolves the case to avoid the cost and uncertainty of further litigation.

Key Deadlines

How to File Your Claim

The official settlement website is KlareFeeSettlement.com. To file online, you can use either of two paths:

If you received a notice: use the unique ID printed on the notice to log in to the claim portal and complete the form. The form will pre-fill with the information Westlake's records show.

If you did not receive a notice but believe you qualify: use the "notice-less" claim form available on the website. You will need your name, address, and Westlake account number to complete the form. Check your old bank statements or Westlake payment history for transactions labeled "ACI Pay" or showing a convenience fee — that confirms eligibility before you spend time on the form.

Paper claim forms can also be downloaded from the settlement website, completed, and mailed to the settlement administrator. Mailed claims must be postmarked no later than May 18, 2026.

How to Verify You Were Charged a Convenience Fee

Before filing a claim, confirm that you actually paid a convenience fee to ACI Payments during the class period. Two ways to check:

Bank or credit card statements (2022–2025). Look for transactions labeled "ACI Pay," "ACI Payments," or "Convenience Fee" — usually a separate line item from your monthly Westlake auto loan payment. The fee is typically a flat amount (often a few dollars) added to the payment.

Westlake online account. If you have access to your Westlake account portal, look at your payment history for the dates you paid through ACI. The platform may show the fee as a separate charge.

If you do not see any convenience fees on your records, you may have used a different payment method (bank transfer, mailed check, or autopay through your bank) that did not trigger an ACI fee — in which case you are not a class member for this settlement.

Frequently Asked Questions

How much will I receive from the Westlake settlement?

The exact amount per class member depends on the number of valid claims filed against the $1.2 million fund. The fund is distributed per capita — equally among all valid claimants — after court-approved deductions.

I did not receive a notice. Can I still file?

Yes. The settlement website allows class members who did not receive a notice to file a "notice-less" claim using their name, address, and Westlake account number. Westlake's records will be checked for verification.

What is a "convenience fee" and why is it controversial?

A convenience fee — sometimes called a "pay-to-pay" fee — is a charge imposed by a creditor or debt collector for accepting a particular payment method, on top of the underlying debt. California law restricts such fees in the debt collection context, and the lawsuit alleged Westlake's fees through ACI Payments exceeded what the law permits.

I paid through a different processor — am I eligible?

No. The settlement covers only fees paid to ACI Payments, Inc. specifically. Fees charged by Westlake directly or through a different processor are not part of this settlement.

I made some payments before the due date and some after. Do all of them count?

Only payments made on or after the due date — or where the due date is unknown — are covered. Convenience fees on early payments are excluded from this settlement.

I paid off my Westlake loan years ago. Am I still eligible?

Yes, if you paid a covered convenience fee during the class period (June 20, 2022, to August 18, 2025). Whether the loan is now paid off or active does not affect your eligibility — only the fact and timing of the convenience fee payments matter.

What if my Westlake account was a co-borrower or joint account?

The class includes natural persons with a retail installment contract assigned to Westlake. If you are listed on the contract as a borrower or co-borrower and you paid the convenience fees, you are likely a class member. The claim form on the settlement website will guide you through any joint-account issues.

What if I miss the May 18 deadline?

If you miss the deadline, you cannot file a claim or receive a payment. Class members who did not opt out by February 3, 2026, are also bound by the settlement and release their right to sue Westlake individually for the same alleged conduct.

How long until I receive payment?

Final approval was granted at the April 16, 2026, hearing. Payments are typically issued 60 to 90 days after final approval, pending any appeals — so payments are anticipated to begin distributing by summer 2026.

Where can I get more information?

The official settlement website is KlareFeeSettlement.com. Contact information for the settlement administrator is on the website's FAQ page.

Disclaimer

This content is for general informational purposes only, is not legal advice, and does not create an attorney-client relationship. Joy Coleman is licensed in Georgia and New Jersey and is not licensed to practice law in California. Readers should consult a qualified attorney licensed in their jurisdiction.

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