- The financial watchdog, ASIC, has launched proceedings against Bank of Queensland and Bendigo and Adelaide Bank
- ASIC claims both banks issued unfair contract terms to small business owners between 2016 and 2019
- Bendigo Bank’s share price is down 0.79 per cent today, currently sitting at $10.62 apiece
- BOQ’s share price is down 1.43 per cent today, currently sitting at $8.94 apiece
The Australian Securities and Investments Commission (ASIC) has launched legal proceedings against Bank of Queensland and Bendigo and Adelaide Bank.
The financial watchdog claims both banks have issued unfair contract terms which negatively impact small businesses.
A “significant imbalance in the parties’ rights and obligations” under small business contracts issued by BOQ and Bendigo Banks is being alleged by ASIC.
Additionally, the corporate regulator is arguing the two banks terms would cause “detriment” to small businesses if relied on, and were unnecessary to protect the banks’ interests.
Proceedings will investigate contracts issued by BOQ and Bendigo Bank between 2016 and June 2019.
Bendigo Bank said the identified unfair contract terms were updated in July this year, following earlier recommendations by ASIC.
In a statement released to shareholders, Bendigo Bank said it is working with ASIC to reach a “mutually agreed outcome.”
BOQ told shareholders it will compensate any small business customers who it identifies as being affected.
Bendigo Bank has taken a 0.79 per cent hit to its share price today, following the allegations. Shares in the company are currently worth $10.62 each.
BOQ’s share price is suffering in the same way, down 1.43 per cent today, currently sitting at $8.94 apiece.
Both share price updates are as of AEST 11:50 am.