CBA's enforceable undertaking for having misled customers
The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking (EU) from Commonwealth Bank because a communication to internet customers was deemed misleading.
CBA sent a message to customers informing them of changes to regulations prohibiting unsolicited credit card limit increase invitations, and inviting them to consent to receive such invitations in the future. However ASIC formed the view the message implied CBA customers would not be able to increase their credit limit in future if they did not consent.
ASIC stated the message also implied that if customers did not consent they would miss out on opportunities to access extra funds should they need them, and it created the impression customers needed to act urgently. However under both the new and old regulations customers can request credit limit changes and provide and withdraw consent at any time, ASIC noted.
Approximately 96,000 customers provided their consent, according to ASIC.
Under the EU, CBA has agreed to not rely on the consents obtained from customers on 12 and 13 December 2011, and will contact each customer who consented to correct any misleading impression and inform them of their rights, ASIC stated.
CBA withdrew the message as soon as ASIC raised concerns, and ASIC said it acknowledged the cooperative approach taken by the CBA in relation to this matter.
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
