Royal commission to open with consumer finance case studies
The first round of public hearings for the Royal Commission into misconduct in the banking, superannuation and other financial services will feature a series of case studies on consumer lending.The commission has nominated the topics to be covered as: "aspects of the treatment of consumers by banking and financial services providers in connection with a number of credit products, including residential mortgages, car finance and credit cards". The first round of hearings will also consider "the arrangements and practices of banking and financial services providers and their intermediaries"."A number of consumers will give evidence of their particular experiences during the hearings. The entities that are the subject of consumer evidence will be informed by the Commission. A representative of a consumer advocacy group will also give evidence," the Commission said.Specific angles that this first round of hearings will cover are:• Residential mortgages: looking at the fraudulent loan applications through the NAB Introducer Program; fraudulent brokers and broker arrangements at Aussie Home Loans; and accreditation of brokers and broker arrangement by CBA. • Car finance practices: with the two groups in the firing line being Westpac and St George, and ANZ and Esanda.• Credit cards: notably unsuitable credit card limit increases from Westpac; and Citi's imposition of international transaction fees.• Add-on insurance products: aspects of credit insurance charges in connection with home loans, personal loans and credit cards by CBA will be aired.• Credit Offers, such as unsuitable pre-approved overdraft offers from ANZ.In addition, ANZ's account administration errors, and CBA's allegedly unsuitable overdraft facilities and the failure of its automated systems will also be topics for airing. "Further topics may be included and the list above will be updated accordingly before the hearings commence," the Commission stated.These hearings will take place in Melbourne from 13 March to Friday 23 March.