Stock Groups

Australia’s CBA pleads guilty to consumer credit insurance fraud charges -Breaking

by Mike Robinson

[ad_1]

© Reuters. FILE PHOTO – The logo of the Commonwealth Bank of Australia is displayed at their central Sydney office, Australia on October 12, 2017. REUTERS/David Gray

(Reuters] – On Friday, the Australian Securities and Investments Commission said that Commonwealth Bank of Australia (OTC), Australia’s largest lender, had pled guilty for 30 criminal charges related to mis-selling of consumer credit insurance.

Since a Royal Commission investigation in 2018, which found numerous deficiencies in Australia’s financial sector, scrutiny of Australian lenders has increased significantly. Companies and regulators have had to swiftly take action.

The securities regulator stated that CBA sold policies to certain customers as add-on products between 2011 and 2015, and they were promoted by the bank. According to CBA, the bank would admit guilt.

CBA declined to respond immediately to Reuters’s request for comment.

This news comes after a civil suit by ASIC against Australia’s second lender. Westpac Banking (NYSE:) Corp April, for selling credit insurance to consumers who have not yet agreed to purchase it.

ASIC has begun a larger review of consumer credit insurance sales in 2018 and 2019, by up to 11 banks. It has also cited Australia, New Zealand Banking Group (OTC) for similar scrutiny and lawsuits.

CBA was also hit with multiple lawsuits in this year’s aftermath of being sued earlier this month for not paying its employees.

Disclaimer Fusion MediaThis website does not provide accurate and current data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts, buy/sell signal, and quotes. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.



[ad_2]