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CBA admits it sold insurance to over 100,000 ineligible customers

The Commonwealth Bank of Australia has admitted it sold insurance products to over 100,000 ineligible customers after an intense session of questioning.

The CBA’s Executive General Manager Clive Van Horem told the commission the bank has now started its remediation process, that is, to pay customers the compensation they’re owed for taking out these policies.

The bank also admits it made “errors of judgment” with the way it sold insurance products to some of its home loan and credit card customers.

Ross Greenwood speaks with Macquarie Radio Political Reported Michael Pachi for the details.

“The Commonwealth Bank was aware from about 2015 that it was going to start having problems with these insurance products, but it was only last year that it actually decided to do something about it.”

He tells Ross Irene Savidis appeared before the commission after she accepted a credit card offer made by the bank.

She told the commision she was “pressured” to take out an insurance policy.

“What we’re starting to see now from the royal commision is they’re putting customers into the witness box to explain their circumstances,” says Michael.

Listen to the full update below