The big corporate watchdog - aka ASIC - has filed 30 criminal charges against CommBank. And with 16 million customers.... this ain't a good look for them.
Background: The corporate watchdog - aka the big, bad ASIC - filed 30 criminal charges against CommBank. And with 16 million customers...this ain't a good look for them.
What happened: Between 2011 and 2015, when some people took out a CBA credit card, personal loan or mortgage, they were offered insurance. The bank claimed the insurance would help borrowers meet their repayments if they lost their job, suffered a major injury or died.
What else: The problem was, many of the people who took out the insurance didn't meet the eligibility criteria. But CBA will be pleading guilty to the charges, which means they could face up to $51 million in fines.
💡In 2018, the Aussie Government took on the big banks and insurers in the country with the Banking Royal Commission. And this was like one massive hurricane for these industries...one we're still seeing the fallout from today.
💡The Banking RC planned to investigate dodgy practices in the banking and finance industry, but it uncovered a lot more than it bargained for. We're talkin'
💡In fact, 3 of the Big 4 Bank CEOs stepped down, AMP was completely shattered, everyone copped fines and they all sold out of their wealth management (financial advice) arms.
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