The Australian banking royal commission revealed that customers are not always treated honestly in home loans and car loans. The commission opened an inquiry and will inspect various credit products as well as credit cards agreements.
The royal commission holds initial public hearing on different cases related with misleading banking practices on home and car loans.
“The commission will hear evidence of events involving certain financial services entities in the context of home lending that suggest that consumers have not always enjoyed the right to be treated honestly and fairly when it comes to home loans”, said the senior counsel assisting the commission, Rowena Orr SC. “Some of these events may have involved breaches of the law, while others may have involved departures from community standards and expectations”, added she.
The Australian banking royal commission will inspect different practices in home loans, auto title loans, as well as credit cards, where according to the commissioners the customers are mislead and unfaithful treated with the agreements.
The 75-million-dollar inquiry has so far received more than 385 submissions from the public.
“Some of Australia’s big banks will fail to meet a deadline for the royal commission tomorrow because of the vast amount of material about possible misconduct that they have to get through”, said the commissioner Kenneth Hayne QC.
However, the banking royal commission warned that during the process they are not able to inspect every case of misconduct in the financial services sector and treat each of the submissions separately. However, the commissioners promised to do their best to examine the practices of financial and credit institutions.
The Nationals senator John Williams hopes that victims may have signed as a result of a settlement over a dispute with a financial institution would be waived by authorities. If not, he believed there should be a Senate inquiry running parallel to the royal commission. There people can give information covered by parliamentary privilege which would then be fed back to the banking royal commission.