Finance company Oak Capital at centre of Seb Costello loo chase faces new $5 million claim

A finance company whose employee was chased into a women’s toilet by A Current Affair’s former reporter Seb Costello has been accused of an ‘unconscionable’ act.

A finance company whose employee was chased into a women’s toilet by A Current Affair’s former reporter Seb Costello charged interest and fees that totalled 108 per cent on a loan, court documents claim. Picture: Tony Gough

A finance company whose employee was chased into a women’s toilet by A Current Affair’s former reporter Seb Costello charged interest and fees that totalled 108 per cent on a loan, court documents claim.

Oak Capital allegedly charged Construct Homes, owned by builder Peter Aquino, more than $5 million in interest and penalties on three short-term loans taken out with the mid-tier money lender.

Construct Homes’ statement of claim filed in the Victorian Supreme Court alleged that Oak Capital engaged in “unconscionable behaviour”.

“The interest and fees imposed by Oak Mortgage as at 10 December 2024 amounts to $1.69m being 108.3 per cent of the principal amount,” the building firm’s claim alleged.

“The interest and fees imposed were exorbitant and not reasonably necessary to protect Oak Mortgage’s interests.”

Mr Aquino’s company claimed it was also charged $3.3m interest and fees on a $3.6m loan, and $472,595 on a $1.55m loan.

Construct Homes had to sell a property in Elwood that had plans for a luxury home to pay Oak Capital.

The company sold four properties to pay off the loans, including a prime beachfront block in Sorrento on Melbourne’s ritzy Mornington Peninsula, two properties in Elwood and a country hideaway in Nyora, Gippsland.

Construct Homes claimed that those property sales meant it had overpaid Oak Capital more than $2 million on the total loans, rejecting the company’s claims of higher penalty interest rates.

The legal battle between Oak Capital and Construct Homes made national headlines when Mr Costello, a veteran ACA reporter, followed Oak Capital employee into a women’s toilet last year.

1/20 Ruskin Street Elwood was also sold to pay Oak Capital.

Mr Costello quit Channel 9 this month and footage taken in that TV bounce has never aired after Oak Capital took the broadcaster to court.

He has previously denied that his Nine departure was linked to the Oak Capital story.

Peter Aquino, of Construct Homes. Picture: Stephen Drill

Michael Landy, a financial counsellor for Mr Aquino said outside court: “This is not just a matter of corporate responsibility; it’s a significant consumer protection issue that warrants immediate and serious attention.

“Victims of these practices deserve to be heard, and I strongly encourage anyone who feels they’ve been wronged by Oak Capital to step forward.”

Oak Capital, which markets itself with the tagline “transparency, security (and) integrity”, is also facing a separate claim from the Australian Securities and Investments Commission, the national financial watchdog.

Seb Costello quit Nine this month.

ASIC Deputy Chair Sarah Court last year accused Oak Capital of depriving its clients of important consumer protections.

ASIC alleged in its court claim filed in October last year that Oak Capital had “engaged in unconscionable behaviour” relating to 47 loans totalling more than $37 million.

ASIC Deputy Chair Sarah Court said last year that “we allege Oak Capital deprived its clients of important consumer protections … and protection from being charged excessive fees and interest.”

Oak Capital’s lawyers said in a statement in relation to Construct Homes’ claim that “as the matter is before the Court, Oak is not in a position to comment on the matters alleged in the statement of claim. A defence will be filed by Oak.”

The company also declined to comment on the ASIC claim as it was “presently before the Courts.”

The Construct Homes case was due to head to mediation before May 30.

Originally published as Finance company Oak Capital at centre of Seb Costello loo chase faces new $5 million claim