(Reuters)-Australian securities regulators say Australia’s top lender, Commonwealth Bank of Australia (OTC :), overcharges interest on litigation resulting from rigorous financial sector investigations, according to Australian securities regulators. He fined A $ 7 million ($ 5.36 million) for doing so.
A federal court in February found that the CBA misleaded its customers and overcharged more than A $ 2.2 million in interest over a three-year period.
The Australian Securities and Investment Commission (ASIC) has sought a fine of A $ 7 million, while the CBA has fined A $ 4 to $ 5 million.
“The CBA, which was delayed in repairing customers following this error, was a deteriorating factor in the court’s decision on penalties,” said Sean Hughes, ASIC Commissioner. (Https: //
According to a lawsuit filed by ASIC in December, customers were charged higher interest rates than advice on more than 12,000 occasions.
Australian financial companies have faced numerous class actions and penalties in the last two years after the Royal Commission’s investigation into the sector revealed a wide range of illegal activities, including claims for deaths.
A CBA spokesperson acknowledged the penalty, adding that the bank had reimbursed 2,269 customers for a total of A $ 3.74 million.
“This kind of failure is unacceptable and we apologize to the customers who were expensive at the time,” a spokeswoman said.
($ 1 = 1.3063 Australian dollars)
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The Australian CBA has ordered a fine of $ 5 million for Reuters overclaiming interest.
https://www.investing.com/news/stock-market-news/australias-cba-ordered-to-pay-5-million-fine-for-overcharging-interest-2467650 The Australian CBA has ordered a fine of $ 5 million for Reuters overclaiming interest.