Australian Banks to Refund $60 Million in Excessive Fees, CommBank Holds Back $270 Million

Thousands of Australians were wrongly charged over $60 million in excessive bank fees. The Australian Securities and Investments Commission (ASIC) found that 800,000 customers are eligible for refunds due to incorrect charges on low-income earners receiving Centrelink payments. However, millions of Australians could be affected.

ASIC commissioner Alan Kirkland urged banks to refund excessive fees. The Commonwealth Bank, Westpac, Bendigo Bank, and ANZ were identified for causing financial distress to customers, particularly Indigenous customers.

The Commonwealth Bank refused to refund $270 million charged to low-income customers between July 2019 and October 2024. Instead, they plan to move eligible customers to a new nominal fee account.

Residents in remote Indigenous communities, such as Djarindjin, faced confusion over refund eligibility. Financial counsellors highlighted the need for better communication and support for affected customers.

ASIC's report showed some progress in understanding First Nations customers, but more efforts are needed. Financial counsellors emphasized the importance of fair communication and support for affected individuals.

ANZ, Westpac, Bendigo Bank, and Commonwealth Bank responded to the findings, with ANZ expanding remediation payments and Commonwealth Bank making goodwill adjustments for unusually high fees.

According to the source: Australian Broadcasting Corporation.