ACCC Condones Commonwealth Bank’s Actions Despite Warnings it Could Disadvantage Consumers

Commonwealth Bank
The Commonwealth Bank has been accused of using its market dominance to try and reduce competition in the $700 billion home lending market.

In a move condoned by the Australian Competition and Consumer Commission, the CBA has told 8000 mortgage brokers they won’t be able to offer the bank’s home loans in future, if they fail to write enough business for them.

In a letter sent from the CBA to Queensland mortgage broker Wayne Ormond last month, the bank insists each of his company’s mortgage brokers must now submit four home loans per quarter. Mr Ormond’s company, Refund Home Loans employed 270 brokers, meaning the bank expected about 4,320 applications per year.

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