Total
0
Shares
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • 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.

BOQ by the numbers
More From The Market Herald

" Forrest rejects “Wait Awhile” state as home for hydrogen project

Fortescue Metals Group (FMG) Chairman Andrew Forrest said Western Australian was the first choice for the Fortescue Futures Initiative (FFI) hydrogen project, but

" Qantas (ASX:QAN) brings forward international flights to Nov 1

Qantas (QAN) will begin international flights two weeks earlier than planned, on November 1, 2021, after the Federal and New South Wales governments
Insurance Australia Group (IAG) - MD and CEO, Nick Hawkins

" ASIC sues Insurance Australian Group (ASX:IAG) for misleading discounts

Insurance Australia Group (IAG) shares are sinking today after the corporate watchdog announced civil action against an IAG subsidiary for failing to honour

" Rio Tinto (ASX:RIO) cuts 2021 iron ore shipments over “tight labour market”

Rio Tinto (RIO) has cut its expected iron ore shipments for 2021 as Western Australia’s constricted labour force delays the completion of two