Commonwealth Bank of Australia pleads guilty to 30 criminal charges

On Friday, in a statement the Australian Securities and Investments Commission (ASIC) said, the Commonwealth Bank of Australia, the country’s largest lender has pleaded guilty to 30 criminal charges for mis-selling consumer credit insurance between 2011 and 2015.

The scrutiny of Australia’s lenders and financial institutions has gone up significantly following a 2018 Royal Commission inquiry which found widespread shortcomings in the sector.

In September, the ASIC said CBA had promoted and sold certain policies as an add-on insurance product to 165 customers by telephone and online. 

“The bank is no longer selling the products and the 165 customers affected had been compensated,” said a CBA spokesperson in an emailed statement while adding that the company had fully cooperated with the regulator during its investigation.

The development comes in the wake of a similar civil lawsuit by ASIC against Westpac Banking Corp, Australia’s second biggest lender in April, for selling consumer credit insurance to customers who had not agreed to buy it.

The regulator is in the process of conducting a wider review into consumer credit insurance sales between 2018 and 2019 by 11 banks, and has filed similar lawsuits against National Australia Bank and Australia and New Zealand Banking Group.

Earlier this month, the CBA had been hit by multiple lawsuits including one for underpaying its staff.

Categories: Creativity, Economy & Finance, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

Tags: , , , , , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: