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Australian Financial Regulator Files Criminal Charges Against CBA

Australian Securities and Investments Commission or ASIC announced Thursday that it has filed criminal charges against the Commonwealth Bank of Australia or CBA (CBA.AX) in the Federal Court, Sydney for the mis-selling of consumer credit insurance.

The 30 criminal charges relate to CBA's promotion and sale of CreditCard Plus and Loan Protection policies as an add-on insurance product in branches, by telephone and online.

Australia's corporate, markets and financial services regulator noted that the charges relate to allegations that between 2011 and 2015, CBA made false or misleading representations to customers that the insurance policies had uses or benefits to those customers when part or all the benefits were not available.

The matter is being prosecuted by the CDPP after an investigation and referral by ASIC.

ASIC said the company has cooperated in the investigation to date. The matter is to be listed for first mention in the Federal Court, Sydney, on a date to be fixed.

In April 2021, ASIC also filed separate civil penalty proceedings against Westpac Banking Corp. for its selling practices regarding consumer credit insurance products.

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