CBA gets ‘please explain’ from MPs
The Commonwealth Bank is under scrutiny over a lack of information being provided to customers on fee changes and loan defaults.
The bank has agreed to provide more information to customers in default on bank loans after it revealed to a parliamentary inquiry that it wrote off large amounts of defaulting customers' debts without telling them. While their statements showed a lower outstanding loan amount as a result, the written off amounts were suddenly added back to the loan if it appeared a customer's financial position had improved. This caused confusion for borrowers and the bank has promised to provide such customers with full details of the liabilities and the status of their loan.
Meanwhile, the inquiry also heard that in 1998 the CBA had changed the way it charged fees on home loans – from annually to monthly – without letting borrowers know, an oversight that could cost the bank up to $20m in fines.