The Federal Court of Australia has approved a $50 million settlement of a class action brought against Commonwealth Bank of Australia (CBA) over consumer credit insurance (CCI). 

The lawsuit, brought by law firm Slater and Gordon, related to CCI for credit cards and personal loans sold between 2010 and March 7 2018. 

In November, CBA said that following court ordered mediation, the settlement had been reached, also resolving proceedings against Colonial Mutual Life Assurance Society and AIA Australia. CBA says the defendants “make no admissions of liability”. 

Group members will now be able to register for the settlement distribution scheme. 

Slater & Gordon has previously said class action settlements of over $126 million have been agreed over the sale of CCI, and up to 1 million customers are likely to receive compensation. 

In an ANZ class action, a $47 million settlement was reached, with Slater & Gordon listing insurers as OnePath Life, OnePath General Insurance, Zurich and QBE. A Westpac settlement of $29 million lists insurers as Westpac Life Insurance and Westpac General Insurance. 

The law firm launched the three actions in 2020 over cases where customers were sold insurance when they may have been ineligible, unemployed or had pre-existing health conditions or disabilities. Some never provided consent, were not informed the insurance was optional or that they would have to pay, the law firm says. 

Another case, against National Australia Bank and MLC over CCI policies, reached a $49.5 million settlement in November 2019.