The Westlake Services payment fee class action settlement provides $1.2 million in compensation to consumers who were charged convenience fees when making payments on retail installment contracts through Westlake Financial Services. If you made a payment on a Westlake vehicle loan between June 20, 2022 and mid-2023 and were charged a convenience fee by ACI Payments, Inc., you’re likely eligible to claim between $20 and $60, depending on how many other eligible consumers file claims. The settlement resolves claims that Westlake charged these fees without proper authorization or disclosure. This class action, formally known as Klare v.
Westlake Services, LLC d/b/a Westlake Financial Services (Case No. 2:23-cv-06386 in the U.S. District Court, Central District of California), has reached a critical stage. The settlement received final approval from the court on April 16, 2026, which means claims must be filed by May 18, 2026 to receive a payout. Missing this deadline means you forfeit your right to compensation entirely.
Table of Contents
- WHO IS ELIGIBLE FOR THE WESTLAKE SERVICES SETTLEMENT?
- UNDERSTANDING THE $1.2 MILLION SETTLEMENT FUND AND PAYOUT AMOUNTS
- TIMELINE AND PAYOUT EXPECTATIONS FOR THE SETTLEMENT
- HOW TO FILE YOUR CLAIM FOR THE WESTLAKE SETTLEMENT
- COMMON MISTAKES TO AVOID WHEN FILING YOUR CLAIM
- WHAT HAPPENS IF YOUR CLAIM IS REJECTED
- THE BROADER CONTEXT OF PAYMENT FEE CLASS ACTIONS
WHO IS ELIGIBLE FOR THE WESTLAKE SERVICES SETTLEMENT?
The settlement class includes all natural persons who had retail installment contracts assigned to Westlake services and paid a convenience fee to ACI Payments, Inc. during the claim period from June 20, 2022 through the date of the plaintiff’s motion for preliminary approval. This covers a specific window in time when the challenged fee practices were in effect. The class is broadly defined to capture everyone affected by the convenience fee charges, not just a subset of customers.
To determine if you qualify, check whether you made online or phone payments on a Westlake auto loan and were assessed a separate convenience fee. For example, if you paid $450 toward your vehicle loan but were charged an additional $7.50 or $10 convenience fee, that payment likely qualifies. The fee would have appeared as a separate line item on your payment confirmation or invoice. Westlake vehicle financing customers represent hundreds of thousands of potential claimants, so this settlement could benefit a substantial number of people.
UNDERSTANDING THE $1.2 MILLION SETTLEMENT FUND AND PAYOUT AMOUNTS
The total settlement fund of $1.2 million must be divided among all approved claims, which is why individual payouts will vary. If 20,000 people file claims, each person might receive $60, but if 60,000 people claim, each amount drops to $20. The settlement administrator will determine the exact per-claim amount only after the claim deadline passes and they can count total eligible claimants. This uncertainty is one limitation of how class action settlements work—you won’t know your exact payout until after the deadline.
The estimated range of $20 to $60 reflects reasonable expectations based on typical claim participation rates, but there’s no guarantee you’ll receive the higher amount. Some class members will receive more than others depending on how many claims are filed. Additionally, the $1.2 million figure doesn’t include attorney’s fees or settlement administration costs, which are paid separately from the settlement fund. This means the actual money distributed to claimants is the full $1.2 million, with no further deductions.
TIMELINE AND PAYOUT EXPECTATIONS FOR THE SETTLEMENT
The April 16, 2026 final approval hearing marked a significant milestone—the court confirmed that the settlement terms are fair, adequate, and reasonable for the class. With this approval in place, the claims filing window is now open but rapidly closing. You must submit your claim by May 18, 2026, or you will be permanently barred from receiving any payment. This is not a deadline that can be extended or waived under any circumstances.
After the May 18 claim deadline, the settlement administrator will process and validate claims during the summer months. Actual payouts are expected 60 to 90 days after final approval, meaning checks or electronic transfers should arrive sometime in summer 2026. If you file by the deadline and your claim is approved, you can typically expect payment within this timeframe, though complex cases may take longer. Payments will be distributed once the administrator completes verification of each claim.
HOW TO FILE YOUR CLAIM FOR THE WESTLAKE SETTLEMENT
Filing your claim is straightforward and free—you should never have to pay money to submit a claim. Visit www.KlareFeeSettlement.com, the official claims website administered by the settlement administrator. You’ll need to provide basic information such as your name, address, account information with Westlake, and details about the convenience fees you paid. The online form is designed to be user-friendly, and most people can complete it in 10 minutes or less.
You have the option to file online, by mail, or potentially by phone depending on what options the settlement administrator offers. Filing online is fastest and provides immediate confirmation of receipt, whereas mailed claims require additional processing time. Compare this to other settlements where you might need to gather receipts or documentation—this settlement typically requires only the basic information Westlake already has on file. Keep a copy or screenshot of your claim confirmation for your records.
COMMON MISTAKES TO AVOID WHEN FILING YOUR CLAIM
One critical warning: submitting your claim after May 18, 2026 will result in automatic rejection, regardless of circumstances. Even claims that arrive one day late are ineligible. This is different from some government benefit programs that allow grace periods—class action deadlines are absolute. If you’re uncertain whether you’re eligible, file anyway rather than waiting for clarification.
It’s better to submit a claim that might be rejected than to miss the deadline entirely. Another common issue involves using outdated or incorrect Westlake account information. If you’ve moved, changed phone numbers, or your payment account details have changed since you paid the convenience fee, make sure you provide your original account information as it existed when you made the payment. Don’t update your information to match your current details—the claims processor needs to match you to the original transaction. If you’re unsure about your account number, contact the settlement administrator through the claims website before submitting.
WHAT HAPPENS IF YOUR CLAIM IS REJECTED
Some claims will be rejected if the settlement administrator cannot verify that you were actually part of the eligible class. This might happen if your account information doesn’t match Westlake’s records, if your payment doesn’t fall within the June 20, 2022 window, or if there’s a data mismatch. A rejected claim means no payout, but you may be able to appeal if you believe the rejection was made in error.
Check the claims website for information about the appeals process and deadlines. For example, if you changed your name due to marriage but filed with your maiden name, or if you provided an old address that doesn’t match Westlake’s current records, your claim might be flagged for review. The settlement administrator will typically send a notice asking for clarification before making a final rejection decision. Respond promptly to any such requests to give yourself the best chance of claim approval.
THE BROADER CONTEXT OF PAYMENT FEE CLASS ACTIONS
This settlement reflects a larger trend of scrutiny on payment convenience fees charged by financial services companies and lenders. Over the past five years, numerous settlements have been reached involving companies that charged undisclosed or allegedly unauthorized convenience fees.
The Westlake case specifically challenged fees charged by ACI Payments, Inc., a third-party payment processor, highlighting how financing companies may not always be transparent about who’s collecting fees and for what purpose. The $1.2 million settlement is moderate in size compared to some major fintech settlements, but it’s significant for the affected Westlake customers. This case demonstrates that even well-established financing companies face legal challenges over fee practices, and it reinforces the importance of reviewing payment terms and unexpected charges on your loan account.
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