You have 0 free articles left this month.

Lawyers Weekly - legal news for Australian lawyers

Powered by MOMENTUM MEDIA
lawyers weekly logo
Advertisement
SME Law

Federal Court class action launched against CBA

Shine Lawyers has commenced proceedings in the Federal Court against major bank CBA’s CommInsure policy on behalf of “tens of thousands” of affected consumers.

August 26, 2020 By Naomi Neilson
Federal Court class action launched against CBA
expand image

Customers who were sold overpriced insurance policies based on the bad advice from financial planners have launched a class action against CommInsure, with assistance from class actions firm Shine Lawyers that lodged the action with the Federal Court. 

 
 

The firm is alleging that Commonwealth Bank’s (CBA) licensed financial planners had failed to inform their clients they could obtain “substantially similar or better” insurance policies with much lower premiums from alternative insurers. 

Class actions practice leader Craig Allsopp said: “Instead of putting their clients’ best interests first, planners were incentivised by commissions and other benefits to funnel people into expensive CommInsure policies. 

“Customers trusted their advisers to make the best decisions for them but were let down and, in some cases, have lost thousands of dollars.” 

If the class action is successful, Mr Allsopp said the amount each group member would receive in damages would depend on the premiums they have paid for their insurance for the period that they held the policy. 

Mr Allsopp said it was “far too difficult and expensive” to launch individual legal claims against “big corporations with deep pockets”, so this case will give affected customers “a fighting chance to claw back the money they’re owed with the strength in numbers”.

Naomi Neilson

Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly. 

You can email Naomi at: This email address is being protected from spambots. You need JavaScript enabled to view it.

You need to be a member to post comments. Become a member today
Got a tip for us?
If you have any news tips or stories to share, feel free to send them our way.
Momentum Media Logo
Most Innovative Company