On the Record - Response to 4 Corners

Ms Kate Wild
Researcher
Four Corners
ABC Television
Sydney NSW

 

27 March 2008

Dear Ms Wild

Thank you for your enquiry:

In regard to the question raised by your reporter, the Commonwealth Bank provides the following response:

The Commonwealth Bank became aware of a small number of personal loans that were approved in late 2004 and 2005 to a specific sector of the community where disposable income levels were low. Subsequently, some of these customers found difficulty in repaying the loans.

Any instances of this kind are always of concern to the Bank and an internal investigation was undertaken.

As a result, a new affordability policy was introduced and remains in place today. The Bank continues to work closely and co-operatively with consumer groups to ensure that any customers that were granted loans under the "old" policy and who subsequently fell into difficulty, were contacted by the Bank's hardship unit. In all cases a solution has been found appropriate to each customer's individual circumstances.

Yours sincerely

Bryan Fitzgerald
General Manager, Media