CBA hit with class action over insurance

Law firm Slater and Gordon is filing a class action against Commonwealth Bank, alleging that Australia’s largest bank sold customers credit card and personal loan insurance that was worthless to them.

The lawsuit, filed in the federal court, is the fourth filed by the law firm in its “Get Your Insurance Back” campaign.

It recently settled a similar class action against NAB for $49.5 million and has also filed suits against ANZ and Westpac.

Slater and Gordon said than 200,000 people been sold credit card and personal loan insurance that guarded against job losses despite their being unemployed or not working full time, making it very unlikely they would ever be able to claim against those policies.

“This is reprehensible behaviour by the bank, which has chosen to compensate only a negligible portion of its customers, despite their admission that they knew the insurance was worthless,” Slater and Gordon practice group leader Andrew Paull said.

Mr Paull called those efforts “a tokenistic effort to protect the bank’s brand, rather than a genuine attempt to make good its past wrongdoing.”

A Commonwealth Bank spokeswoman it had not yet been served with any legal proceedings

“We will carefully consider any allegations once the claim is received,” she said.

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