Australia’s Banking Sector inquiry uncovers massive fraud as banks collect fees from dead customers
A national inquiry into misconduct within Australia’s banking system has revealed profit-driven mismanagement that has destroyed customer trust. Some of Australia’s most powerful banks were found guilty for making families homeless and charging fees to customers who did not receive the services they provided. Infringing investment advice could lead to clients losing hundreds of millions.
Banks charge fees for services that are not provided on Shelter Humanity
The Royal Commission of Australia, Australia’s highest level of public inquiry, spent one year investigating misconduct claims against several of Australia’s largest banks, including CBA, the nation’s largest lender. Australia’s ABC reported that the problems in the local banking sector have been ongoing for more than a decade.
The Commissioner Kenneth Hayne made 76 recommendations in his report, which was fully supported by the government. Unscrupulous financial sectors are now at risk of being eliminated by the legislature. Many institutions could be facing criminal charges for charging fees but no service.
Australian Banks fraudulently collect fees from deceased customers
The report reveals the details of how Australia’s four “Big Four” banks – CBA (Westpac), ANZ, ANZ, and NAB – cheated customers out to get A$178 million (US$126 millions) in financial services they did not offer. The banks went even further and charged customers who had already died. Wealth managers and major banks collectively will need to pay A$850 million (US $603 millions) in compensation.