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AMP dragged to court again: 1,500 Aussies charged $600k

·2-min read
The AMP building in Sydney and Australian money fanned out.
AMP is being dragged to court again after allegedly charging thousands of Aussies fees for no service (Source: Getty)

Embattled AMP is being dragged back to court for allegedly wrongfully charging 1,500 Aussies fees for no service, according to ASIC.

ASIC said AMP wrongfully received around $600,000 in advice fees from corporate superannuation accounts, despite those customers not having access to advice services.

ASIC further alleges that from July 2015 to April 2019, AMP continued to take fees from customers accounts even after being informed they had left their company’s default super account.

Additionally, ASIC said AMP failed to ensure it had proper systems in place to make sure it didn't wrongfully charge customers and did not act efficiently, fairly and honestly.

Previous charges against AMP

This action follows proceedings commenced by ASIC against a number of AMP companies alleging that they had charged life insurance premiums and advice fees to more than 2,000 customers despite being notified of their death.

ASIC alleged that the AMP companies received over $500,000 in insurance premiums from the superannuation accounts of dead customers.

Additionally, AMP was accused of receiving over $100,000 in advice fees from dead customer accounts.

“ASIC commenced this proceeding because licenced financial services companies need to have robust compliance systems to ensure they meet their legal obligations to customers,” ASIC said in a statement at the time.

“Customers, and their beneficiaries, should have confidence that they will be correctly and lawfully charged for any financial services or products.”

Following the Royal Commission AMP has so far paid back around 200,000 customers a total of $153 million for fees for no service offences.

Throughout 2019, AMP conducted a full remediation program covering all affected superannuation accounts in which more than $900,000 was repaid to affected customers for wrongfully charging advice fees to over 2,500 superannuation accounts.

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