Australia’s top bank cops criminal charges

Criminal charges have been filed against the Commonwealth Bank of Australia in the country’s Federal Court

The Australian Securities and Investment Commission on Thursday filed criminal charges against the bank for the mis-selling of consumer credit insurance.

In a statement, ASIC stated: The 30 criminal charges relate to CBA’s promotion and sale of CreditCard Plus and Loan Protection policies as an add-on insurance product in branches, by telephone and online. The charges relate to allegations that between 2011 and 2015, CBA made false or misleading representations to customers that the insurance policies had uses or benefits to those customers when part or all the benefits were not available.

The matter is being prosecuted by the CDPP after an investigation and referral by ASIC

The conduct of the Commonwealth Bank was put into the spotlight at a Royal Commission into the Misconduct in the Banking, Superannuation and Financial Services Industry.

ASIC went on to state that the criminal charges filed against the bank address allegations that between 2011 and 2015, the bank made false or misleading representations about benefits of the insurance policies to customers when some or all the benefits were not available.

ASIC says the country’s biggest bank has been cooperative with the investigation thus far.

The Australian Federal Court is yet to hear the matter, with a court date pending.