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The Commonwealth Bank is set to face more legal action for its conduct, this time over overcharging interest rates.

The financial regulator ASIC today launched legal action in the Federal Court, claiming the CBA failed to rectify an error which saw more than 2,000 customers charged "substantially higher" interest rates on business overdraft accounts between December 2011 and March 2018.

It is alleged the error resulted in the bank's customers paying approximately 34 per cent on overdraft accounts compared to the advertised 16 per cent, resulting in more than $2.9 million in overpayments. 

The error was one of many that were uncovered during the Banking Royal Commision.

In a statement, the Commonwealth Bank announced that it did not intend to fight the charges, stating that it "has cooperated fully with ASIC's investigation". 

Since the error was uncovered, the bank says it has refunded more than $3.7 million in overpayments.

It is not the first time ASIC has taken action against Australia's largest bank, with the regulator fining the CBA $5 million for its failures with an agricultural business service.

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