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Billion-dollar bank blowout for fees for no service

  • August 24 2020
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Billion-dollar bank blowout for fees for no service

By Grace Ormsby
August 24 2020

To date, six of Australia’s largest financial institutions have reported a need to return more than $1 billion in compensation to customers who suffered as a result of fees for no service or non-compliant advice.

Billion-dollar bank blowout for fees for no service

Billion-dollar bank blowout for fees for no service

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  • August 24 2020
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To date, six of Australia’s largest financial institutions have reported a need to return more than $1 billion in compensation to customers who suffered as a result of fees for no service or non-compliant advice.

Billion-dollar bank blowout for fees for no service

It’s an additional $295.9 million in identifiable compensation payments that will be required to be paid compared with six months ago, December 2019.

An update from the Australian Securities and Investments Commission has revealed the figures, after AMP, ANZ, CBA, Macquarie, NAB and Westpac undertook review and remediation programs to compensate affected customers, after the misconduct was first uncovered in 2015, and then widely publicised during the banking royal commission.

Nearly 1 million customers were found to have been affected by the policies across the six businesses.

NAB has paid or offered compensation to 626,863 customers – more than three times the number of affected individuals reported by any other institution. It’s led to offers of compensation totalling more than $368 million.

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With the second-largest number of affected customers, AMP has identified 199,425 customers as eligible for compensation, to the tune of $145 million.

In third, CBA has identified more than 54,000 customers to be paid out more than $167 million in compensation for its own conduct.

The new figures come just after ASIC has put three super funds in the firing line for their own misconduct related to the provision of advice. 

Billion-dollar bank blowout for fees for no service
Billion-dollar bank blowout for fees for no service
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About the author

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Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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