Australians push for CommBank to reimburse $270 million in unjust fees charges
In a recent development, the Commonwealth Bank (CBA) has faced criticism from consumer advocacy group CHOICE and the Australian Securities and Investments Commission (ASIC) for charging excessive account fees to customers receiving Centrelink payments.
CHOICE, a consumer advocacy group that has been active for over 60 years, is dedicated to providing unbiased advice to consumers, allowing them to make informed decisions. The organisation has launched a petition against CBA, demanding that the bank refund the unfair fees charged to these vulnerable customers.
ASIC's investigation found that CBA and its subsidiary Bankwest charged over $270 million in fees to low-income customers between July 2019 and October 2024. ASIC has pushed for banks to remedy the issue, with a total of over $93 million already committed to refunds by various financial institutions for excessive fees charged to low-income customers.
CBA's current approach involves transitioning approximately 1.5 million eligible high-fee accounts held by low-income customers to a new lower “nominal fee” structure. However, this is still pending approval. Bankwest has already removed fees from its high-fee accounts and converted certain products to low-fee accounts.
ASIC Commissioner Alan Kirkland stated that these fees are not acceptable for low-income customers and do not pass the "pub test." CHOICE deputy director of campaigns, Andy Kelly, stated that the support for the campaign has been overwhelming, coming from affected customers, CBA customers more broadly, and financial counsellors.
CBA has promised to make "goodwill payments" but maintains that the fees were properly disclosed to customers. However, this has not satisfied ASIC, which has criticised CBA for refusing to refund these fees and has called out other banks for agreeing to repay some customers.
CHOICE does not accept ads or sponsorships and is funded by members who value expert reviews and independent product testing. Membership offers consumers access to expert reviews, independent product testing, and support when something goes wrong. The CHOICE Community forum is a platform for consumers to share thoughts, ask questions, and engage with the organisation.
The petition has gathered over 19,000 signatures in less than a week, indicating broad community sentiment against CBA's actions. The issue remains an ongoing controversy with ASIC continuing to oversee the matter and advocate for more comprehensive redress for affected low-income customers.
[1] ASIC Media Release, ASIC takes action against CBA over excessive fees charged to low-income customers, 26 February 2021, https://asic.gov.au/media-centre/find-a-media-release/2021-releases/asic-takes-action-against-cba-over-excessive-fees-charged-to-low-income-customers/
[2] CHOICE Media Release, CHOICE slams CBA for refusing to refund $270 million in excessive fees, 26 February 2021, https://choice.com.au/media/choice-slams-cba-for-refusing-to-refund-270-million-in-excessive-fees/
[3] CBA Media Release, Commonwealth Bank announces $25 million refund for Indigenous concession account holders, 26 February 2021, https://www.commbank.com.au/about-us/media-centre/media-releases/commonwealth-bank-announces-25-million-refund-for-indigenous-concession-account-holders.html
[4] CHOICE Media Release, CHOICE launches petition against CBA for charging excessive fees to Centrelink customers, 26 February 2021, https://choice.com.au/media/choice-launches-petition-against-cba-for-charging-excessive-fees-to-centrelink-customers/
- The petition launched by CHOICE against CBA, demanding a refund for the excessive fees charged to vulnerable Centrelink customers, has garnered over 19,000 signatures, signifying a general-news concern against the bank's business practices.
- ASIC's ongoing investigations into campaigns such as the one involving CBA's excessive fees charged to low-income customers highlight the importance of financing that is fair and just for all, particularly in the general-news sector.
