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Financial institutions fork out almost $750m for misconduct

Think the Australian Securities and Investments Commission (ASIC) is a toothless tiger? Think again.

Since 2015, nearly $750 million has been paid or offered to individuals who have suffered loss or detriment because of non-compliant advice and fees for no service from financial institutions.

AMP, ANZ, CBA, Macquarie, NAB and Westpac are the main culprits which have been forced to pay.

AMP
As at 31 December 2019, AMP had paid out $26,654,023 in compensation to 1987 individuals for non-compliant advice.

It had also forked out $140,459,870 to 193,167 for misconduct associated with fees for no service.

ANZ
According to ASIC, ANZ has spent $36,205,259 on compensating 1777 customers for non-compliant advice.

It’s also offered up $59,415,383 to 21,184 people who have suffered through fees for no service.

CBA
A total of 628 Commonwealth Bank customers have been compensated $9,386,454 for the provision of non-compliant advice.

The bank has also made efforts to compensate more than 50,000 customers for fees for no service misconduct: 50,576 individuals sharing in $164,846,374 compensation.

Macquarie
Macquarie’s data set is incomplete – ASIC noted that it had accepted an enforceable undertaking in January 2013 from a subsidiary of Macquarie Group that would see it undertaking work “largely consistent with the aims of ASIC’s review”.

As at June 2017, the financial institution had paid approximately $24.7 million in compensation to 263 clients.

It’s also paid out (or offered) $2,583,645 to 734 customers for fees for no service misconduct.

NAB
By far capturing the largest number of customers, NAB has had to spend $39,944,208 to compensate 1294 customers who suffered through non-compliant advice.

It has also offered remediation to a whopping 586,961 individuals who suffered through fees for no service misconduct – to the value of $163,862,768.

Westpac
The big four bank has remediated 1,365 individuals to the value of $29,680,142 for non-compliant advice practices.

A further 19,441 customers have been offered compensation to the value of $76,686,356.

All up, 7,051 customers have been compensated $141,870,086 for non-compliant advice.

A further 872,063 individuals have been compensated or offered $607,854,395 for misconduct related to fees for no service.

5 comments

If I was to rob a bank, I would go to prison. Until some of these germs actually see the inside of bars for stealing from their customers, then justice has not been done.

I believe AMP just opened new accounts in the client names and did not actually pay the amounts to the individuals concerned !!  AMP is now putting that money into new accounts and charging new fees.

see here

 https://www.abc.net.au/news/2020-01-21/amp-fees-for-no-service-scandal-cash-repaid-in-new-accounts/11883032

AMP has been forced to refund hundreds of millions of dollars in fees and charges it took from clients following scandalous revelations at the royal commission.  Late last year, AMP started to contact former clients to alert them AMP owed them the money it took in fees while providing no service.  However, instead of asking customers where they would like the money sent, AMP opened a new super account in their name.

and here

https://www.theaustralian.com.au/business/financial-services/amp-sweetens-remuneration-deal-for-ceo-francesco-de-ferrari/news-story/a81ff4a5727e702f8130b7d6bf967142?utm_source=The%20Australian&utm_medium=email&utm_campaign=editorial&utm_content=BusinessReviewPM&utm_source=Email&utm_medium=&utm_campaign=&utm_content=

 

What always amazes me about these institutions, who issue credit cards, is that if you buy something, the cost immediately appears against your online account.

But, if you transfer funds from one account to another it takes days for it to go through.

You can transfer money on a Friday & you are lucky to see it appear by Tuesday the following week.

It's extraordinary how quickly they can process transactions that are in their favour but are unable to offer you the same privledge when it comes to payments that will reduce your liability to them.

 

 

 

Yes, that's always irritated me as well.

I am not defending banks but when I transfer money between my own accounts it is reflected instantly and when I  transfer money to family who use a different bank, that almost always shows up within hours.

What gets me is that when the monthly sum I draw down from an investment co. It can take days to show up and I  reckon my own bank draws a bit of interest for itself an route.

I wrote my car off and the Insurance Co., Apia, paid out the insured value of the car less the excess and less the remaining period of insurance. In this case it was almost $1000, being 11 months premiums. I paid by the month. It would seem that this is common practice amongst insurance companies.

I believe the policy should have ceased at the time of the write off. I believe also that I am being charged for a service that can no longer be provided. 

I am sure that if the 12 month premiums had been paid in full and I cancelled the policy at any time during the term, for whatever reason, I would have received a refund of the balance. 

In their letter advising the disbursement of funds they state "....your claim will be settled on a total loss basis and your policy cover has now come to an end.'

Am I wrong? Are they charging for a service they can no longer provide and should I pursue it furher?

Any help would be really appreciated

 

I wrote my car off and the Insurance Co., Apia, paid out the insured value of the car less the excess and less the remaining period of insurance. In this case it was almost $1000, being 11 months premiums. I paid by the month. It would seem that this is common practice amongst insurance companies.

I believe the policy should have ceased at the time of the write off. I believe also that I am being charged for a service that can no longer be provided. 

I am sure that if the 12 month premiums had been paid in full and I cancelled the policy at any time during the term, for whatever reason, I would have received a refund of the balance. 

In their letter advising the disbursement of funds they state "....your claim will be settled on a total loss basis and your policy cover has now come to an end.'

Am I wrong? Are they charging for a service they can no longer provide and should I pursue it furher?

Any help would be really appreciated

 

5 comments