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17 July 2018 (AFR) – CBA farm account bungle puts risk back in the spotlight

[COMMENT: The Hayne Royal Commission continues to reveal horror stories with us, some of which shatter any trust we might have had in the “banks”. This is a sample of what can go wrong when borrowing from a bank.]

(17 July 2018, AFR, p11, by James Frost)

‘Systems that allowed thousands of Commonwealth Bank customers to be overcharged by almost $8 million have been described as inadequate and in breach of the law in a development that has thrust the bank’s risk department back into the spotlight.’

<snipped…>

‘CBA’s package for farmers was in operation between 2004 and 2015. It promised discounts and fee waivers across 22 products for customers who paid $1000 or 0.25 per cent of their borrowing limit upfront plus $500 a year. But the bank discovered the benefits were never delivered following a review triggered by similar findings in its retail banking business – 8409 customers were overcharged to the tune of $7.8 million. Counsel assisting Michael Hodge, QC, had previously described the systems used by CBA’s wealth management division as “hopeless” during the financial advice hearings.’

Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)

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Brainy's Share Market Toolbox. Read the honest truth about the sharemarket. Develop or fine tune your investing/trading strategies using share price charts (technical analysis), or learn about the investment strategies of others. Melbourne (Australia) based - supporting share market investors and traders to build wealth through smarter investing using my Share Market Toolbox arsenal of weapons to tackle the market.

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