From: RegTech Analyst
The Australian Securities & Investments Commission (ASIC) is accusing Commonwealth Bank of Australia (CBA) of not taking account of a notification of customer that told them he was a problem gambler.
By doing so, the regulator claims that the big Australian lender failed to live up to its responsibilities as stipulated by the National Consumer Credit Protection Act 2009.
ASIC alleges that in January 2017, CBA engaged in conduct that went against the regulations when it neglected to undertake reasonable inquiries and verification of the individual’s financial circumstances prior to making an assessment to increase his credit limit.
The regulator also accused CBA of failing to assess that the credit limit increase was unsuitable for the individual and in subsequently providing the credit limit increase.
The CBA has said it will not contest this lawsuit. “[The bank] did not do the right thing by this customer and we apologise,” said Matt Comyn, CEO of CBA, according to Finews.Asia. ”In recent years we have implemented a number of changes to support our customers’ needs.”
The bank also said it would not fight a second lawsuit regarding its failure to provide benefits outlined in its AgriAdvantage Plus Package.
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