CBA pays $180k breach penalties



The Commonwealth Bank of Australia (CBA) has paid $180,000 following four infringement notices as a result of breaches of responsible lending laws when providing personal overdraft facilities.
CBA incorrectly approved 9,577 customers for overdrafts and 1,152 customers for high overdrafts between July 2011 and September 2015.
CBA reported the matter to the Australian Securities and Investments Commission (ASIC) following an ASIC surveillance and off the back of an internal review, which identified a programming error in the automated calculator, used to assess personal overdraft applications.
Consumers within the four year period were approved for overdrafts or increased limits, despite their declared expenses being greater than their declared income.
ASIC said that the conduct breached responsible lending laws, as consumers were clearly placed in a position whereby they would be unable to comply with overdraft terms.
ASIC has issued four separate infringement notices in the last month totalling $180,000 for breaches of the National Consumer Credit Protection Act 2009 (Cth).
Recommended for you
ASIC has issued infringement notices to two AFSLs over financial advisers providing personal advice while they were unregistered.
Australian retirees could increase their projected annual incomes by as much as 51 per cent through comprehensive financial advice, according to a Vanguard study, but cost continues to be an issue.
AMP has announced a senior appointment to its North leadership team, reinforcing the firm’s commitment to the advice industry.
Despite the financial adviser exam being rooted in ethics, two professional year advisers believe the lack of support and transparency from the regulator around the exam is unethical.