SYDNEY (Reuters) – Australia’s corporate regulator threatened on Thursday to prosecute some of the country’s largest banks over their sales earlier this decade of consumer insurance products that it said had harmed customers.
The Australian Securities and Investments Commission (ASIC) said in a report that consumer credit insurance products, which cover credit card debts or loans when a person loses their job, falls sick or gets injured, had “consistently failed consumers”.
Review - Sales - Practices - Products - Commonwealth
It said a seven-year review of the sales practices and products of Commonwealth Bank of Australia , Citigroup , Australia and New Zealand Banking Group and eight other lenders had showed they “caused consumers harm” and were “extremely poor value for money”.
“We are deeply troubled by the findings in our report, and the stories they tell of unfair practices occurring within Australia’s largest and most well-known financial institutions,” ASIC Commissioner Sean Hughes said in a statement.
Consequence - Failings - Practices - ASIC - Action
“An inevitable consequence of these widespread failings and mis-selling practices will involve ASIC taking significant enforcement action against some of the entities...
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