
Audio By Carbonatix
Commonwealth Bank of Australia (CBAUF) told a government inquiry Thursday that the practice of billing deceased customers for financial advice stretched back years. In one instance, an adviser at the bank's financial planning business was collecting fees from a client more than a decade after they had died.
The revelations emerged as part of a Royal Commission, or public inquiry, into malpractice in Australia's financial services industry.
During a hearing Wednesday, Commonwealth Bank's executive general manager Marianne Perkovic admitted that the lender had charged customers fees for financial advice they never received. A day later, she conceded that Commonwealth Bank advisers had in some cases drawn fees from clients' accounts after they had died.
In one example, an adviser continued billing a customer for advice for more than a decade after they died in 2004.
When Commonwealth Bank became aware of this in 2015, the company recommended "a possible warning to the adviser," according to an internal document read out at Thursday's hearing. The adviser's behavior wasn't reported to Australia's financial watchdog.
The lender said Wednesday that by the end of 2017 it had paid out or offered refunds of 119 million Australian dollars ($93 million) to clients who had been charged for advice they never received.
Commonwealth Bank is Australia's biggest lender by market capitalization. A spokesperson for the bank didn't immediately respond to a request for comment on the issue of billing dead clients.
A Royal Commission is Australia's highest form of public inquiry. It was ordered by Prime Minister Malcolm Turnbull at the end of last year in a bid to restore public confidence in the country's financial sector.
It comes on the back of several big scandals in the industry, including alleged interest rate-rigging and money laundering. The commission is due to submit its findings to the government in February 2019.
Related: Wells Fargo timeline: Bank's 17-month nightmare
Commonwealth Bank isn't the only the lender that's been accused of behaving badly in recent months.
Only last month, Bank of America Merrill Lynch (BAC) admitted to "systematically misleading clients" for five years about how orders were handled for millions of stock trades.
And for the past 18 months, Wells Fargo (WFC) has been dogged by a scandal related to millions of fake customer accounts that were used to juice the bank's books.
Latest Stories
-
The power of the private courtyard: How regalia is redefining resort-style living in Accra
3 minutes -
Beyond roads and bridges: Understanding the true role of your MP
4 minutes -
UK says Russia ran submarine operation over cables and pipelines
5 minutes -
NPRA recovers GH¢27m in 2025, 30% of defaulted pension contributions
8 minutes -
Accra: Police probe dead body retrieved from Nkrumah Circle drain
9 minutes -
Power fluctuations slash Ashanti region water production by 959,000 cubic metres in March
13 minutes -
Beyond the festivities: Gomoa must turn visibility into development
21 minutes -
DVLA clarifies it is not responsible for Toyota Voxy commercial operations
23 minutes -
Calls for Ofori-Atta’s return a non-issue if trial proceeds in absentia – Pius Hadzide
25 minutes -
France names Ghana first beneficiary of newly established National Health Compact
31 minutes -
US Immigration, extradition outcomes likely to influence each other in Ofori-Atta case – Amanda Clinton
34 minutes -
29-year-old woman rescued after hiding in drain to escape attackers
47 minutes -
Gramps Morgan names Ghanaian business leader Monalisa Effah as Ghana-Jamaica Homecoming Ambassador
1 hour -
CAF President urges faith in African football despite AFCON 2025 issues
2 hours -
AFCON U-17: Black Starlets’ aim is to win trophy – Head Coach Prosper Ogum
2 hours