The Maurice Blackburn-led class action alleges Melbourne-based RMBL charged excessive fees on loans and made misleading representations to borrowers under its contributory mortgage fund scheme.

Justice Bernard Murphy signed off on common fund orders earlier this month and approved the opt-out notice that was to be distributed to all class members.

Following an interlocutory application brought by lead applicant Noel Uren on Wednesday, Justice Murphy directed RMBL to clarify its past communications with customers in a letter attached to the front of the opt-out notice.

“Since the commencement of the class action, RMBL has had communications with some of the class members in the class action,” the letter reads.

“To the extent that those communications may have been taken as encouraging class members to, or as suggesting that class members should, opt out of (i.e. take no further part in) the class action, RMBL unreservedly withdraws any such encouragement or suggestion.”

RMBL is also required in the letter to advise class members to read the opt-out notice carefully and make their own decision about the course they wish to take.

The opt-out period was also extended by one week, to July 26, 2019.

Uren, who runs a cattle farm called Walkerville in Gippsland, Victoria with his brother Bruce Uren entered into a loan agreement with RMBL on May 29, 2001, for $760,000. Over a series of contract variations, the total loan amount reached $1,160,000 on December 20, 2007.

The litigation alleges the contract variations altered the collection charge rate, increasing it from an initial 5.5 per cent to 27.5 per cent as of September 16, 2010. This rate purportedly allowed RMBL to demand additional payment from borrowers for “all costs, charges and expenses incurred in connection with the collection of interest on all moneys and amounts payable” and ended up costing the Uren brothers more than $200,000 over the life of the loan.

The class action, filed in September last year, alleges the proper construction of the collection charge clause limited when RMBL could demand additional charges from borrowers and claims that any amounts paid by group members were “substantially in excess” of those referred to in their agreements. Alternatively, the clause was “void for uncertainty,” the suit claims.

Group members have allegedly suffered loss or damages through these excessive charges, and RMBL was allegedly in breach of contract. The class action claims the firm contravened the Australian Consumer Law and the ASIC Act.

The class is represented by Maurice Blackburn. RMBL is represented by Hope & Co Lawyers.

The case is Noel Murray Uren v RMBL Investments Ltd & Anor.