Financial Services Royal Commission and consumer lending

The first round of public hearings of the Financial Services Royal Commission from Tuesday 13 March to Friday 23 March will deal with consumer lending including residential mortgages, car finance and credit cards. It will also consider the arrangements and practices of banking and financial services providers and their intermediaries.

The Commission has announced it intends to deal with consumer lending by reference to the case studies set out below.

It is likely to refer to its recent background paper on mortgage broking.

  Topic Case Studies
1. Residential Mortgages
  • NAB Introducer Program and fraudulent loan applications
  • Aussie Home Loans fraudulent brokers and broker arrangements
  • CBA accreditation of brokers and broker arrangements
2. Car Finance
  • Westpac/St George car finance practices
  • ANZ/Esanda car finance practices
3. Credit Cards
  • Westpac unsuitable credit card limit increases
  • Citi imposition of international transaction fees
4. Add-On Insurance Products
  • CBA credit insurance in connection with home loans, personal loans and credit cards
5. Credit Offers
  • ANZ unsuitable pre-approved overdraft offers
6. Account Administration
  • ANZ account administration errors
  • CBA unsuitable overdraft facilities and failure of automated systems
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