Mortgage Business
CBA fined $7 million for overcharging interest By Malavika Santhebennur 08 April 2021
The major bank has been ordered to pay the penalty for overcharged interest after the court had previously said that it made false or misleading representations on over 12,000 occasions.
The Federal Court of Australia has ordered the Commonwealth Bank of Australia (CBA) to pay a $7-million penalty after the court had previously declared that the lender made false or misleading representations and engaged in misleading and deceptive conduct.
According to the Australian Securities & Investments Commission (ASIC), these declarations related to 12,119 occasions when CBA charged a rate of interest on business overdraft accounts “substantially” higher than what its customers had been advised.