Commonwealth Bank to refund $10 million
A BIG decision from the Australian Securities and Investments Commission (ASIC) will result in refunds for over 65,000 Commonwealth Bank customers.
ASIC determined that the Commonwealth Bank had sold customers unsuitable credit card insurance with their 'CreditCard Plus', with approximately $10 million to be refunded.
ASIC said that the Commonwealth Bank will provide remediation for customers sold this product between 2011 and 2015, who were either students or unemployed.
Peter Kell, ASIC deputy chair, said it was unacceptable that these groups were sold the insurance.
"One of ASIC's priorities is addressing poor consumer outcomes associated with add-on insurance, including CCI," he said.
"Consumers should not be sold products that provide little or no benefit, and banks should have processes in place that ensure this."
Approximately $586,000 in premiums will also be refunded to 10,000 customers, after it was found they over-insured for Home Loan Protection credit card insurance.
