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CBA to refund $12 million after pleading guilty for hawking life insurance policies

The Commonwealth Bank will refund $12 million to around 30,000 customers who were caught up in an illegal CommInsure scheme.

The CBA is pleading guilty to selling life insurance to customers through unsolicited phone calls in late 2014.

The bank faces potential fines of up to about $1.85 million.

ASIC Deputy Chairman Dan Crennan tells Ross Greenwood the charges are being heard under the old legislation.

“If that was to take place today, the total penalty would be just shy of $11 million.

“In certain circumstances, the people being sold these products don’t want, need or understand them.”

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Image: Getty/Robert Cianflone