(Reuters) – The Australian Securities and Investments Commission (ASIC) said on Friday the country’s largest lender Commonwealth Bank of Australia had pled guilty to 30 criminal charges for mis-selling consumer credit insurance to its customers.
Scrutiny of Australian lenders and financial institutions has ramped up significantly since a Royal Commission inquiry in 2018 found widespread shortcomings in the sector, forcing companies and regulators to take swift action.
Last month, the securities regulator said CBA promoted and sold certain policies as an add-on insurance product to 165 customers by telephone and online between 2011 and 2015. The bank said it would plead guilty to the charges.
CBA did not immediately respond to a Reuters request for comment on Friday.
The news follows a similar civil lawsuit by ASIC against Australia’s no.2 lender Westpac Banking Corp in April for selling consumer credit insurance to customers who had not agreed to buy it.
ASIC is conducting a wider review into consumer credit insurance sales between 2018 and 2019 by as many as 11 banks, and has slapped Australia and New Zealand Banking Group and National Australia Bank with similar lawsuits and scrutiny.
CBA has also been hit by multiple lawsuits this year, after having been sued for underpaying its staff earlier this month.
(Reporting by Yamini C S in Bengaluru; Editing by Sherry Jacob-Phillips)
