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(Reuters) – The Australian Securities and Investments Fee (ASIC) stated on Friday the nation’s largest lender Commonwealth Financial institution of Australia (OTC:) had pled responsible to 30 legal fees for mis-selling shopper credit score insurance coverage to its prospects.
Scrutiny of Australian lenders and monetary establishments has ramped up considerably since a Royal Fee inquiry in 2018 discovered widespread shortcomings within the sector, forcing corporations and regulators to take swift motion.
Final month, the securities regulator stated CBA promoted and bought sure insurance policies as an add-on insurance coverage product to 165 prospects by phone and on-line between 2011 and 2015. The financial institution stated it will plead responsible to the fees.
CBA didn’t instantly reply to a Reuters request for touch upon Friday.
The information follows an identical civil lawsuit by ASIC in opposition to Australia’s no.2 lender Westpac Banking (NYSE:) Corp in April for promoting shopper credit score insurance coverage to prospects who had not agreed to purchase it.
ASIC is conducting a wider overview into shopper credit score insurance coverage gross sales between 2018 and 2019 by as many as 11 banks, and has slapped Australia and New Zealand Banking Group and Nationwide Australia Financial institution (OTC:) with comparable lawsuits and scrutiny.
CBA has additionally been hit by a number of lawsuits this yr, after having been sued for underpaying its workers earlier this month.
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