October 12, 2021
  • October 12, 2021

Australian watchdog charges CBA over consumer credit insurance sales

By on September 16, 2021 0

The Commonwealth Bank (CBA) logo is pictured at Australian Bank Headquarters in Sydney, Australia on February 15, 2017. REUTERS / Jason Reed / File Photo

September 16 (Reuters) – Australia’s securities regulator on Thursday said 30 criminal charges have been filed in federal court against the major lender Commonwealth Bank of Australia (CBA.AX) for mis-selling credit insurance consumption to its customers.

The charges relate to the promotion and sale of certain policies as a supplemental insurance product, the Australian Securities and Investments Commission (ASIC) said.

In April, ASIC also sued no. 2 Westpac Banking Corp (WBC.AX) and alleged that it was selling consumer credit insurance to customers who had not agreed to purchase it.

ASIC said on Thursday that the charges revolved around allegations that between 2011 and 2015, the ABC made false or misleading statements about the benefits of insurance policies to customers when some or all of the benefits were not not available.

The move follows criminal proceedings for alleged false and misleading statements against the ME Bank unit of the Bank of Queensland (BOQ.AX) in May.

The CBA case is being pursued by the Commonwealth Director of Public Prosecutions and the bank has cooperated with the ASIC investigation to date, according to the regulator.

The ABC did not immediately respond to a request for comment.

Reporting by Shashwat Awasthi; Additional reporting by Tejaswi Marthi; Editing by Shounak Dasgupta

Our Standards: Thomson Reuters Trust Principles.


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