The Commonwealth Bank has yet again made the case for a Royal Commission into the banking and financial services sector, with the bank releasing an update list of the costs of current rip offs and scandals under the cloak of the resignation of the Chief Executive Officer.

Today under the cover of the announcement regarding Ian Narev’s impending resignation and in the wake of the allegations of more than 53,000 breaches of money laundering and counter terrorism financing laws, the Commonwealth Bank has itself provided more reasons to support Labor’s call for a Royal Commission – with examples of insurance rip-offs, employee entitlement rip-offs, credit card overcharging and continued ASIC investigations.

Today the Commonwealth Bank has reported:

  • It will repay more than $10 million to 65,000 customers who were sold consumer credit insurance they would never be able to claim against because they did not meet the appropriate employment criteria
  • A sharp increase in the amount of superannuation payments owed to part-time staff from around 7,000 staff to 36,000 totalling $13.8 million plus interest
  • ASIC is investigating cases where CBA customers were ripped off with inflated home loan protection insurance premiums
  • ASIC is investigating claims that customers were receiving personal advice rather than general advice during the sale of Essential Super
  • The Bank will refund up to $5 million in credit card charges on disputed transactions.

Last week the Treasurer said that “all options” were on the table when it came to the Commonwealth Bank but that ‘tough talk’ has been shown now to be nothing more than empty rhetoric. It’s clear that the only option left to the Turnbull Government is a Royal Commission.

It’s time for the Prime Minister and Treasurer to stop protecting their banker mates and instead stand up for banking customers.

What will it take for Malcolm Turnbull to show some leadership and join with Labor, the majority of the Senate cross-bench and members of his own backbench and establish a Royal Commission immediately.

This is a joint media release with Matt Thistlethwaite MP, Labor's Shadow Assistant Minister for Treasury.

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