CBA Resolution

Commonwealth Bank statement: Storm Financial class action Sydney: 2 July, 2010: 

"Commonwealth Bank of Australia (the Bank) today described the commencement of a class action by Levitt Robinson Solicitors as disappointing and says..."it potentially denies people covered by the class action a certain and more timely resolution. They further state that... "today’s announcement by Levitt Robinson presents two very stark alternatives. The Commonwealth Bank Storm Resolution Scheme, in place since June 2009, offers a fast, fair and certain outcome. Litigation, on the other hand, offers no certainty of a better result through the action undertaken by Levitt Robinson,” a CBA Bank spokesperson said. “ 

So far, the Bank’s Resolution Scheme has delivered fair and timely outcomes for more than 1,000 customers and provided certainty and finality. 

“Under the Resolution Scheme, the Bank has paid the legal costs for its customers to be represented by more than 40 independent law firms. Only one firm, Levitt Robinson, has taken the litigation route.

“The Resolution Scheme, which the Bank had tested for fairness by an independent legal panel, was established to provide assurance that ‘where we have done wrong, we will put it right’. The Bank remains firmly committed to this principle.”

The Bank says the class action is premature considering that Levitt Robinson has not pursued all the opportunities available under the Scheme. The Bank will contest the claim in full and regrets that customers who pursue this litigation face considerable uncertainty." [End of statement][

Don't you love these banks! One minute they are robbing you blind and the next they are playing Santa Claus! What a load of crap! The truth of the matter is that the CBA isn't capable of lying straight in bed!  See my attached letter to Mr. French of the CBA in which I tell him as much. 

In essence the CBA resolution scheme is no more than a cover-up put forward by the CBA in an attempt to mollify ASIC and the Parliamentary Joint-Committee. It is heavily weighted in favour of the CBA and does little to compensate fully those that agreed to be part of this scheme. 

The situation for those that fall under this scheme is not good! Slater & Gordon, who were engaged by CBA's Storm customers to represent them in this matter, caved in when the big boys appeared. They accepted too readily the CBA's contention that  Storm Financial was permitted to act as our agent in all matters relating to bank loans. 

With the money in their pockets, Slater & Gordon are now off chasing more ambulances whilst the victims of the CBA sit wondering why they were forced to accept a lousy deal when they did nothing wrong?