Bank must acknowledge “false and misleading conduct” for overcharging customers
The Federal Court has ordered Commonwealth Bank of Australia (CBA) to publish notices on its website that acknowledge misconduct for overcharging customers.
In a statement, the Australian Securities & Investments Commission (ASIC) said the court required CBA to publish notices on its website and its newsroom acknowledging “false or misleading conduct” when it overcharged interest on business overdraft accounts.
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In April, CBA was handed a $7 million fine for overcharging 1,500 business between December 01, 2014 and March 31, 2018.
“The requirement for CBA to notify its customers and the general public that it unlawfully overcharged interest is an important part of deterrence, along with the $7 million fine handed down by the court,” said ASIC commissioner Sean Hughes. “Not only does it ensure that CBA’s customers and the general public are aware of the misconduct, it [also] sends a strong message that there is significant financial and reputational risk for failing to have the systems in place to prevent overcharging.”
The notices, referred to as adverse publicity orders, require CBA to publish, at its own expense, both a written and audio-visual notice on its website and its newsroom, and ensure that each notice appears immediately upon access to the landing page as a picture tile on the websites under the heading “Notification of Misconduct by CBA” for 90 days.
ASIC said that CBA must comply with these adverse publicity orders within 30 days.
