Australians Call for Refund of $270 Million in Allegedly Unfair Bank Charges from CommBank
Commonwealth Bank Under Pressure to Refund Excessive Fees to Low-Income Customers
After over 60 years of advocating for Australian consumers, CHOICE is stepping up its campaign against the Commonwealth Bank (CBA) over excessive fees charged to low-income customers. The petition, launched by CHOICE, has gathered over 19,000 signatures in just over a week, calling on CBA to refund the unfair fees.
The issue at hand revolves around hundreds of millions in excessive account fees that CBA charged to low-income customers between 2019 and 2024. The fees, primarily for account keeping, overdraw charges, and dishonour fees, have been a subject of scrutiny by the Australian Securities and Investments Commission (ASIC).
ASIC's investigation found that these fees particularly affected low-income Australians, including many First Nations customers relying on Centrelink payments. Following ASIC's reviews into excessive fees on transaction accounts, four major banks, including CBA, pledged a total of over $93 million in refunds. However, consumer advocates, including CHOICE, note that while this is a positive step, gaps remain, and CBA is a "glaring standout" for not adequately addressing the issue.
CBA has stated it will make some "goodwill payments" but insists the fees charged were properly disclosed to customers. However, ASIC Commissioner Alan Kirkland says the fees are not acceptable in the community or in the eyes of ASIC for people on low incomes to be charged fees that are not right for them.
CHOICE, an organization that provides access to expert reviews, independent product testing, and unbiased advice, has been at the forefront of this campaign. With no self-interest behind its advice, CHOICE helps consumers make informed decisions. CHOICE membership guarantees support when something goes wrong or a business treats a consumer unfairly.
The petition can be signed at [our website/CommBankFees] or using the form below. CHOICE membership ensures that consumers know what is safe for them and their families. The organization does not take ads or sponsorship, ensuring its advice remains impartial and trustworthy.
As the pressure mounts, CBA has yet to commit to refunding the full $270 million in excessive fees. The refusal or delay in refunding the full amount appears related to CBA's limited acknowledgment of the scale of overcharging, coupled with consumer advocates’ criticism of their insufficient response compared to other banks, despite ASIC’s recommendations and public calls for more comprehensive redress.
- CHOICE's persistent campaign against Commonwealth Bank (CBA) continues, urging the bank to refund the remaining $270 million in excessive fees, particularly relevant to low-income customers, in line with ASIC's recommendations and general-news reports.
- Amidst increasing pressure, the finance sector of the business world closely watches the unfolding situation between CHOICE and the Commonwealth Bank, with the organization's relentless activism and impartial approach serving as a beacon for consumer rights within the wider general-news landscape.
