Westpac says considering regulator claims in junk insurance sale proceedings – About Your Online Magazine


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April 8 (Reuters)Australia’s Westpac Banking Corp WBC.AX said on Thursday that it is considering claims in lawsuits launched by the corporate regulator over the sale of “junk insurance” to consumers.

The Australian Securities and Investments Commission initiated investigations into the matter in 2019, claiming that many creditors had sold consumer credit insurance to customers who did not agree to buy the policies. (https://bit.ly/3usVkFB)

Australia and New Zealand Banking Group ANZ.AX and National Australia Bank NAB.AX they have also been the target of lawsuits and regulatory oversight over similar practices.

The regulator is seeking, among other things, unspecified monetary penalties related to the sale to about 384 customers from April 7, 2015 to July 28, 2015, Westpac said.

The country’s second largest lender added that it has not sold consumer credit insurance products since 2019.

(Reporting by Shruti Sonal in Bengaluru; Editing by Ramakrishnan M.)

((Shruti.Sonal@thomsonreuters.com; Twitter: @ shrutisonal26;))

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Paula Fonseca