Commonwealth Bank of Australia Chief Executive Officer Matt Comyn has pinned the blame on predecessor Ian Narev for failing to stop selling credit card insurance that some customers couldn’t claim on.
Narev told Comyn to “temper your sense of justice” when he suggested at a meeting in May 2015 that the bank scrap the product, the CEO said Tuesday during his second day of testimony at an inquiry into misconduct in the financial system. At the time of the meeting, Comyn was in charge of retail banking.
It was later revealed the insurance had been wrongly sold to 64,000 customers who were ineligible to make claims, because they didn’t meet the employment criteria of the policy.
The Sydney-based lender set aside A$16 million ($11.7 million) to compensate customers just before Comyn replaced Narev in April.
Related:
- Australia Life Insurers Will Be Required to Publish Customer Dispute Numbers
- Australian Prime Minister Asks Regulator to Prosecute Bankers for Financial Misdeeds
- Australia’s Financial Institutions Put Profit over Customers, Mis-Sold Insurance: Inquiry
- Allianz Under Fire by Australian Commission for Travel Insurance Sales
- Australia’s Financial Services Probe Highlights Need for Corporate Ethical Training
Topics Australia
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