The Commonwealth Bank (CBA) has announced that it has decided to end sales of its current Credit Card Plus and Personal Loan Protection consumer credit insurance (CCI) products.
CBA credit insurance in connection with home loans, personal loans and credit cards will be examined in the first round of public hearings by the Financial Services Royal Commission.
CBA is working with ASIC to provide refunds to customers who may have been ineligible to claim some benefits due to their employment status at the time of taking out the policy.
It will contact those customers who could be affected and has set aside approximately $16 million for refunds, including interest, to an estimated 140,000 customers of the PLP and Home Loan Protection (HLP) products. This follows a similar refund program which commenced last year for some CCP customers.
CBA says the changes required to withdraw the product from the market will start immediately and will be completed by 30 June. Existing CCP and PLP customers will continue to be covered under their policies and CBA will continue to offer its HLP product to new and existing customers.