ASIC has commenced civil penalty proceedings against CBA, alleging that it charged millions in fees it was not entitled to.
ASIC alleges that between 1 June 2010 and 11 September 2019, CBA incorrectly charged monthly access fees of almost $55 million to nearly 1 million customers who were otherwise entitled to fee waivers. For the period in which the court can impose a penalty (1 April 2015 to 11 September 2019), ASIC alleges that CBA charged $11.5 million in incorrect fees.
“By engaging in the above conduct, ASIC alleges that CBA also engaged in misleading or deceptive conduct and contravened its obligation as an Australian financial services licensee to comply with financial services laws,” ASIC said.
ASIC also alleges that CBA made false or misleading representations to customers that it was contractually entitled to charge the fees when it was not and that it would have adequate systems and processes in place to provide waivers – which ASIC alleges it did not.
“ASIC commenced this proceeding because financial institutions need to have robust compliance systems to meet their obligations to customers. Financial institutions need to put customers first, and customers should have confidence that the banks they deal with charge fees correctly,” ASIC said.
The proceeding will be listed for a case management hearing on a date yet to be set.
ASIC has gained civil penalties totalling $159.8 million in six months in a new record it says will send “strong messages of deterrence”...