If you have received the Opt Out and Commencement Notice and you would like to register your interest in the class action, please click below:
Slater and Gordon has commenced proceedings against CBA for the sale of consumer credit insurance (CCI) policies. Slater and Gordon previously 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 CCI 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.
We allege that CBA and its insurer, Colonial Mutual Life Assurance Society Limited (Colonial), engaged in unconscionable and misleading and deceptive conduct by selling worthless insurance products to their customers.
What is the CBA CCI Class Action about?
On 10 June 2020, Slater and Gordon filed a class action against CBA and Colonial (together, the Respondents) in the Federal Court of Australia on behalf of persons who held CCI for their CBA credit card or personal loan, namely:
- CBA CreditCard Plus; and
- CBA Personal Loan Protection.
The class action is based upon allegations that the Respondents:
- caused customers to make payments as a result of a mistaken belief their policy was compulsory or provided value to them
- engaged in misleading or deceptive conduct in relation to the sale of the policies to customers
- engaged in unconscionable conduct in relation to the sale and issue of the policies to customers by, among other things, selling or issuing policies with no or little value
- unlawfully provided personal advice to some customers who purchased the policies in a bank branch or over the telephone
For more information on class actions, read our class actions 101 guide.
Am I eligible to participate?
You may be a group member in the CBA CCI Class Action if, at any time since 1 January 2010, you were:
- issued with a CBA CreditCard Plus or Personal 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.
Group members who wish to participate in the proceeding
If you received an Opt Out and Commencement Notice, you may be a member in the CBA CCI Class Action and do not need to take any steps to remain a group member at this time.
However, if you wish to receive updates on the progress of the CBA CCI Class Action and be directly notified of any major developments in the claim, you can register your interest by completing the registration form here. If you register, you will receive updates from Slater and Gordon using the contact details you provide.
If you do not wish to receive updates about the CBA CCI Class Action, you do not have to register and can choose to do nothing.
As a group member, whether you actively register or simply remain a group member by taking no further steps to remove yourself from the claim at this time, your individual claim will be resolved through the class action. You will be bound by the outcome in the class action. This means that you will not be able to bring your own separate claim against CBA and its insurers.
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 group members who participate in the class action will not be required to make any contribution towards the legal costs unless the class action is successful.
If the class action is unsuccessful, Slater and Gordon will not charge legal fees and no group member will be liable for any legal costs. If the class action is successful, the Court may be asked to approve reasonable legal costs to be deducted from any settlement or judgement obtained on a pro-rata basis. This means that if you participate in the class action and remain a group member, you will never be out-of-pocket for legal costs.
Frequently Asked Questions
A class action is a type of legal proceeding in which one person, the Applicant, brings a claim on behalf of a wider group of people who have been affected by the same or similar conduct. By grouping claims together and pursuing them collectively, the overall value of the claim makes it economically worthwhile to do so, even in circumstances where the value of individual claims are modest.
If you wish to register your interest in the class action, you may do so via the ‘Registration’ button above. If you have registered your interest in the class action, you will receive group member updates from Slater and Gordon when there are major developments in the class action. Additionally, all potential group members will continue to receive Court ordered notices, such as the recently received Opt Out Notice, when required by the Federal Court of Australia.
Class actions in Australia are typically commenced on an ‘opt out’ basis, which means that the Court assumes that you wish to be part of the class action unless you take active steps to remove yourself from the proceeding, by completing an ‘opt out’ notice telling the Court that you do not wish to participate.
The Federal Court of Australia made orders on 16 February 2021 requiring group members to take steps to remove themselves from the proceeding (known as “opting out”). The deadline to opt out was 4.00pm AEDT on 9 April 2021 (Opt Out Deadline), which has now passed.
If you chose to opt out of the proceeding, you are no longer a group member or part of the class action. This will mean that you will not be entitled to any benefit or compensation that may be obtained in the class action. However, you will still have the right to bring your own claim against CBA and its insurers if you wish to do so.
At this stage, you can register your interest using the ‘Registration’ button above or you can do nothing. By registering, you have not joined the class action, you have only registered your interest. We will get in contact with you if we need additional information from you.
Generally, most class actions tend to take between one and three years to resolve, although each class action is different, and the time required for a claim depends on a variety of factors, such as the complexity of the issues involved, the amount of evidence to be considered, and the tactics adopted by the respondents in defending the claim.
For more information regarding the CBA CCI Class Action, please refer to the following documents: