Slater and Gordon have commenced proceedings against the Commonwealth Bank of Australia (CBA) for the sale of consumer credit insurance (CCI). Slater and Gordon have recently settled a similar case against NAB for $49.5 million, providing compensation to NAB customers who purchased worthless CCI. As with NAB, the CBA class action is being run on a no win, no fee basis and without a litigation funder.
The CBA class action is part of a series of cases following the Banking Royal Commission, which heard that banks were using pressure tactics to sell unnecessary CCI products to customers who were ineligible to claim under the policies. It is the fourth class action Slater and Gordon have issued in relation to CCI products.
We allege that CBA and the insurer, Colonial, engaged in unconscionable and misleading and deceptive conduct by selling worthless insurance products to their customers.
What you need to know about the CBA class action
On 9 June 2020, Slater and Gordon filed a class action against CBA and Colonial Mutual Life Assurance Society Limited (together, the Respondents) in the Federal Court of Australia. The class action has been commenced on behalf of persons who held CCI for their CBA credit card or personal loan, namely:
- CBA CreditCard Plus; and
- CBA Loan Protection.
The class action is based upon allegations that the Respondents:
- engaged in unconscionable conduct in breach of section 12CB of the ASIC Act;
- engaged in misleading or deceptive conduct in breach of section 12DA of the ASIC Act; and
- failed to act in the best interests of, and provided inappropriate advice to, CBA customers in breach of sections 961B and 961G of the Corporations Act.
CBA remediation program
In March 2018, following a review of their CCI products, the CBA announced that they would end the sale of CreditCard Plus and Loan Protection. It was identified that many CBA customers had been sold policies that they were ineligible to claim upon, making them worthless. The CBA provided refunds to some of their customers.
Slater and Gordon believe that the CBA’s remediation program did not adequately compensate customers. We have commenced the CBA class action as we want to ensure that all CBA CCI customers who suffered loss as a result of the bank’s wrongdoing are compensated.
Am I eligible to participate?
You may be a group member in the CBA class action if, at any time since 1 January 2010, you were:
- issued with a CBA CreditCard Plus or Loan Protection policy;
- have paid a premium; and
- have not been remediated in full for the loss you suffered as a result of the Respondents’ conduct.
Will I have to pay legal fees if I participate?
No. This class action is being run on a No Win, No Fee basis, which means that participants in the class action will not be required to pay any fees unless the class action is successful. This means that if you participate in the class action, you will never be out of pocket.
You can register your interest in the CBA class action by completing the form below.
Register your interest
Complete the registration form to receive updates about the class action