Stockbroking | Wealth Management | Corporate Advice

x

Resizing text on the web

To increase or decrease the magnification of a web page, press Ctrl and '+' (plus) to zoom in or Ctrl and '-' (minus) to zoom out. To return the page to its original size, press Ctrl + 0.

You can also scroll the mouse wheel up and down while holding Ctrl to increase/decrease zoom level.

Inquiry finds litany of big bank ripoffs

Major banks deceived customers and haven't yet compensated many people they ripped off, the banking royal commission has heard.

Two weeks of hearings concluded on Friday with a searing statement from the counsel assisting the commission Rowena Orr, who ran through a list of banking misconduct.

She called on the commission to find misconduct charges and breaches of national credit and corporation law against the NAB, Commonwealth Bank, ANZ, and Aussie Home Loans.

Ms Orr also said Westpac had only just provided information about its own misconduct and the commission needed time to go through it before making more recommendations.

The NAB's "introducer" program in western Sydney, which led to 10 bankers being sacked, saw branch managers falsify documents for home loans.

"It had identified approximately 1300 customers who may have been affected by the misconduct ... (but) no customer has yet been offered any remediation," Ms Orr said.

Senior NAB executive Anthony Waldron earlier told the commission up to $23 million would flow to the customers soon.

Ms Orr said the evidence showed the NAB engaged in misleading, deceptive and unconscionable conduct.

The Commonwealth Bank also identified its mortgage broking system was hurting customers, but has still not done anything about it.

"CBA has not stopped paying volume-based commissions to brokers ... nor has it taken any steps to commence ceasing that practice," Ms Orr said.

The commission heard people who received home loans weren't told how much their broker received in commission, even though banks had that information.

The Commonwealth-owned Aussie Home Loans was savaged for not reporting to police or regulators four brokers who fraudulently arranged home loans.

"The misconduct arose not merely because of misconduct of rogue brokers ... but because the systems, processes and culture at Aussie Home Loans permitted such conduct to occur," Ms Orr said.

The commission was told to find ANZ in breach of its responsibilities to take into account a person's expenses, after it gave a 72-year-old pensioner a home loan so he could pay overseas scammers.

Ms Orr said the Commonwealth Bank took two years to report problems with its credit card protection insurance, even though it was supposed to tell the Australian Securities and Investments Commission within 10 days.

The bank also knew it had issues with its loan protection insurance but decided to ignore it until it had fixed the credit card problem.

"The premise seems to be CBA could cope with one thing at a time, not two things," Commissioner Kenneth Hayne said.

The banks named in the case studies have been asked to respond to the recommendations that they face misconduct charges.

Austrlaian Associated PressBack to Breaking News

Market Indices