Deborah Knight, Nine News Sydney: 87 criminal charges have been levelled at the Commonwealth Bank, who are accused of cold-calling people and badgering them into buying insurance that they don’t want, or need.
Ross Greenwood explains
Ross Greenwood: The Commonwealth’s life insurance arm – CommInsure – is alleged to have breached anti-hawking laws which prohibit any person making an unsolicited offer to sell a financial product – in short…cold calling.
The previsions were put in place to prevent the public being badgered by finance companies.
And to stop boiler rooms – which are telephone sales networks – cold calling the public.
The Commonwealth DPP alleges in late 2014 that a telemarketer was provided with names and numbers from Commonwealths existing customer base – and those calls were in breach of the law.
The bank made a short statement today – saying its insurance arm “self-reported” breaches to the corporate regulator ASIC.
But Treasurer Josh Frydenberg laid it out straight for any financial who has done wrong
Josh Frydenberg, Treasurer: There is inappropriate behaviour, indeed where they is criminal misconduct, then they need to face those people who perpetrated that misconduct need to face the full force of the law.
Greenwood: Its listed for court in mid-November