Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Australia's CBA to plead guilty to consumer credit insurance mis-selling charges

09/16/2021 | 12:22am EDT
FILE PHOTO: The Commonwealth Bank (CBA) logo is pictured at the Australian bank's  headquarters in Sydney

* Charges relate to sales between 2011 and 2015

* All 165 affected customers remediated - CBA

Sept 16 (Reuters) - Commonwealth Bank of Australia, the country's top lender, said on Thursday it would plead guilty to 30 charges brought against it in the federal court for mis-selling consumer credit insurance (CCI) to its customers.

Scrutiny of Australian lenders and financial institutions has ramped up significantly since a Royal Commission inquiry in 2018 found widespread shortcomings in the sector, forcing companies and regulators to take swift action.

The development follows criminal prosecution for alleged false and misleading representations against Bank of Queensland's unit ME Bank in May and a lawsuit against no. 2 lender Westpac in April.

The charges, filed https://asic.gov.au/about-asic/news-center/find-a-media-release/2021-releases/21-251mr-asic-brings-criminal-charges-against-cba-for-mis-selling-consumer-credit-insurance by the Australian Securities and Investments Commission (ASIC) on Thursday, relate to promotion and sale of certain policies as an add-on insurance product to 165 customers, CBA said in a statement.

"CBA apologizes to customers who were affected by these issues and accepts that this conduct was unacceptable."

The ASIC said earlier in the day that between 2011 and 2015, CBA had made false or misleading representations about benefits of the insurance policies to customers when some or all of the benefits were not available.

The bank said it had self-reported the issue to the ASIC in 2015 and compensated the affected customers, adding that it no longer sells the products in question.

Earlier this year, CBA was separately sued by regulators for alleged compliance failures in delivering financial services, charging wrong access fees, and overcharging interest. (Reporting by Shashwat Awasthi; Additional reporting by Tejaswi Marthi; Editing by Shounak Dasgupta and Rashmi Aich)


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BANK OF QUEENSLAND LIMITED -0.33% 9.1 End-of-day quote.17.57%
COMMONWEALTH BANK OF AUSTRALIA -0.07% 104.88 End-of-day quote.27.73%
WESTPAC BANKING CORPORATION -0.35% 25.74 End-of-day quote.32.89%
Latest news "Economy & Forex"
03:56pExclusive-Turkey's state banks likely to follow central bank and slash rates on Monday -sources
RE
03:54pIRBEA CONFERENCE WEBINAR SPECIAL 1 – COP26 GOAL 1 : securing global net zero by mid-century & keep 1.5 degrees within reach
PU
03:31pErdogan's critics say expulsion call is diversion from economic woe
RE
03:18pItaly, UniCredit fail to clinch Monte dei Paschi rescue deal
RE
03:14pU.s. cdc says as of october 24, 12,888,226 people received a booster dose for covid-19 vaccine since august 13, 2021
RE
03:14pU.s. cdc says 190,578,704 individuals have been fully vaccinated against covid-19 as of oct 24 vs 190,402,262 individuals as of oct 23
RE
03:14pU.s. cdc says 220,351,217 individuals have received at least one dose of covid-19 vaccine as of oct 24 versus 220,145,796 individuals as of oct 23
RE
03:13pU.s. cdc says administered 413,645,478 doses of covid-19 vaccine as of oct 24 vs 412,856,169 doses administered as of oct 23
RE
02:56pTurkish lira hits record low after Erdogan seeks expulsions
RE
01:55pElon Musk Says "None" When Asked How Much $Shib Is He Holding - Tweet
RE
Latest news "Economy & Forex"