Community

Commonwealth Bank vows to clean up its act after fraud allegations

Commonwealth Bank vows to clean up its act after fraud allegations

COMMONWEALTH Bank chairman David Turner wants Australia’s biggest bank to also be its most ethical following the damning financial advice scandal and allegations it fraudulently impaired loans.

CBA, which is working through about 8,000 complaints related to allegations customers lost savings due to its poor financial advice, came under fire again last week when a parliamentary inquiry heard it lowered valuations on the commercial loan book it acquired in its 2008 takeover of BankWest so it could reduce the price it paid UK bank HBOS.

Fronting shareholders at CBA’s annual general meeting on Tuesday, Mr Turner rejected claims the bank used the tactic and drove customers out of business as a result.

However, he added that the bank was voluntarily examining all aspects of its business to identify areas where it had performed below expectations.

It is refunding approximately $7.6 million to about 8,400 customers after failing to apply fee waivers and benefits to one of its agribusiness products.

Shareholders heard the bank will announce a similar refund to retail customers within weeks.

“We see it down the road as being the ultimate competitive advantage,” Mr Turner said.

“We think we will be the ethical bank that others look up to for honesty, transparency, decency, good management, openness. That’s exactly where were trying to go.”

CBA is just one of the major financial institutions trying to improve its image following a period in which they have been lambasted for raking in huge profits while hiking mortgage rates and imposing exorbitant credit card fees.

Australia’s big four banks delivered combined annual cash earnings of $30 billion in 2015.

ANZ last week said it will pay $13 million in compensation to 200,000 customers after failing to pay them enough interest on their savings accounts.

National Australia Bank, Macquarie Investment Management and Bank of Queensland have also compensated customers in recent months.

Mr Turner said CBA has since July 2014 assessed about 1,500 of the 8,000 formal reviews requested in relation to the quality of its financial advice, and that the process will take about two years to complete. So far, the bank has made offers of compensation totalling $2.2 million.

A Senate report into the bank’s financial advice business last year blasted CBA over its response, or lack thereof, to cases of fraud and misconduct in the division.

“We received justifiable criticism for acting too slowly so now we are being proactive,” chief executive Ian Narev told shareholders.

“We will continue to look for these sorts of mistakes, not because a regulator’s asked us to do it but because it is the right thing to do.

“The amounts of money in aggregate are small but they are meaningful for the customers who receive them and even more importantly they are evidence of our commitment to do the right thing.”

Online Source

The Indian Telegraph Sydney Australia

Community

More in Community

Maddington man who's claimed division 1 six times reveals his winning lotto strategy

Maddington man who’s claimed division 1 six times reveals his winning lotto strategy

The Indian TelegraphNovember 20, 2017
Police seize 700kg of cocaine and arrested three men in international drug trafficking bust

Police seize 700kg of cocaine and arrested three men in international drug trafficking bust

The Indian TelegraphNovember 16, 2017
Popular swimming spot shuts down

Popular swimming spot shuts down

The Indian TelegraphNovember 13, 2017
Why the dual citizenship saga wouldn’t have played out this way under Tony Abbott

Why the dual citizenship saga wouldn’t have played out this way under Tony Abbott

The Indian TelegraphNovember 6, 2017
Teen critical after Blacktown shopping centre stabbing

Teen critical after Blacktown shopping centre stabbing

The Indian TelegraphNovember 2, 2017

Murder charge laid after Ms. Parwinder Kaur dies from burns in 2013

The Indian TelegraphNovember 1, 2017

Video of Ms. Parwinder kaur’s husband revealed

The Indian TelegraphNovember 1, 2017
parwinder

Husband of Parwinder Kaur arrested following her death in Sydney’s north-west in 2013

The Indian TelegraphNovember 1, 2017
Abbott's belief in India and political conservatism

Abbott’s belief in India and political conservatism

The Indian TelegraphOctober 31, 2017
Jie Curtis has been jailed for at least seven years for the ‘terrifying’ attacks

Jie Curtis has been jailed for at least seven years for the ‘terrifying’ attacks

The Indian TelegraphOctober 31, 2017
Brisbane man stabbed to death after investigating power cut to his Kuraby home

Brisbane man stabbed to death after investigating power cut to his Kuraby home

The Indian TelegraphOctober 30, 2017
Traffic delays on Sydney Harbour Bridge after crash

Traffic delays on Sydney Harbour Bridge after crash

The Indian TelegraphOctober 25, 2017
Chhath 2017: Delhi Government Announces Public Holiday On Chhath Puja

Chhath 2017: Delhi Government Announces Public Holiday On Chhath Puja

The Indian TelegraphOctober 25, 2017
We Finally Have A Real Pic Of India From Space On Diwali

We Finally Have A Real Pic Of India From Space On Diwali

The Indian TelegraphOctober 23, 2017
'It Was Going To Eat Her' - Australian Teen Survives Deadly Shark Attack

‘It Was Going To Eat Her’ – Australian Teen Survives Deadly Shark Attack

The Indian TelegraphOctober 23, 2017
What is Diwali? Everything you need to know about the Festival of Lights

What is Diwali? Everything you need to know about the Festival of Lights

The Indian TelegraphOctober 20, 2017
A taste of Bollywood in Hobart’s CBD as Franklin Square hosts Diwali, the Indian festival of light

A taste of Bollywood in Hobart’s CBD as Franklin Square hosts Diwali, the Indian festival of light

The Indian TelegraphOctober 20, 2017
Dhanteras 2017: Why do you buy gold, silver and utensils on this day; and things to remember while buying

Dhanteras 2017: Why do you buy gold, silver and utensils on this day; and things to remember while buying

The Indian TelegraphOctober 17, 2017
Official launch of Adani's Carmichael mine cancelled

Official launch of Adani’s Carmichael mine cancelled

The Indian TelegraphOctober 16, 2017
Diwali festival to light up Blacktown Showground this Sunday

Diwali festival to light up Blacktown Showground this Sunday

The Indian TelegraphOctober 14, 2017

Inside the mind of Ruma Mundi

The Indian TelegraphOctober 12, 2017