Does the Commonwealth Bank owe you money? Tens of thousands of customers are entitled to $ 12 million because the bank is fined for selling life insurance policies to vulnerable customers
- The bank pleaded guilty to 87 costs related to the sale of insurance through cold calls
- Half of the people who bought a life insurance policy through a cold call have canceled their policy
- The Commonwealth Bank was also instructed to reimburse 300,000 customers
The Commonwealth Bank will be forced to repay more than $ 12 million to tens of thousands of customers after being admitted to selling life insurance policies through unsolicited phone calls.
Australia's largest bank pleaded guilty at the Downing Center in Sydney on Tuesday to 87 charges for & # 39; hawks & # 39; between October and December 2014.
The bank was instructed to make repayments to 30,000 customers who had incorrectly sold a life insurance policy between 2010 and 2014 – an amount that could exceed $ 12 million.
They are also faced with fines of up to $ 1.85 million.
The Commonwealth Bank today argued for 87 charges (stock image)
The Australian Securities and Investments Commission (ASIC) took legal action against the bank in October.
ASIC focused on cold calls through a telemarketing agency that sells an insurance policy called Simple Life.
The agency received the contact details of customers via the Commonwealth Bank database.
ASIC said earlier that half of the policy sold was canceled between 2012 and 2013 within the first six months, suggesting that consumers did not want to buy the policy, the Sydney Morning Herald.
& # 39; ASIC is concerned that the manner in which these products were sold was apparently unfair, with customers not getting enough information to make an informed decision, & # 39; said ASIC Vice President Daniel Crennan.
The Commonwealth Bank declined to comment on the conviction.
This is the first criminal case against a large bank since the Hayne royal commission earlier this year.
The bank has been instructed to repay 300,000 customers (stock image)
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