CBA and United linked to breaches of credit code

Finance broker United Financial Services and Commonwealth Bank are under investigation by the Australian Securities and Investments Commission over the alleged coercive promotion of personal loans to borrowers in some towns in Queensland’s Cape York peninsula. CBA said it was making inquiries into the loans. United allegedly promoted personal loans to people to buy vehicles when the borrowers had income of only a few hundred dollars a week. Credit contracts of this nature could potentially be voided under the consumer credit code.