Three of Australia’s big four banks have settled class action lawsuits following an action brought by Slater & Gordon over the sale of credit insurance products.
The lawsuit was filed against Commonwealth Bank of Australia (CBA.AX), Westpac Banking Corp (WBC.AX), and Australia and New Zealand Banking Group (ANZ.AX) on behalf of around one million customers of the banks
The settlement amount was A$126 million.
The lawsuit alleged the entities and associated parties made customers believe their policy payments were “compulsory or provided value to them”, as well as claiming the bank customers were misled or were deceptive in conduct over selling or issuing policies with no value, the law firm said.
CBA, which is Australia’s biggest lender, said the settlement involves other defendants including Colonial Mutual Life Assurance Society (CMLA) and AIA Australia Ltd, who would together pay A$50 million to their customers if court approves the sum.