‘Shame’: Pressure mounts on CBA to repay $270m in fees

A new petition is calling on the Commonwealth Bank to refund excessive fees charged to low-income Australians

The Commonwealth Bank (CBA) is facing growing public backlash over its refusal to repay $270 million in fees it charged to low-income customers between 2019 and 2024.

The fees included account-keeping, dishonour and overdraw charges - often applied to people receiving Centrelink payments or other government assistance.

An investigation by the corporate regulator ASIC found CBA had charged these fees to around 2.2 million low-income customers not covered by an earlier refund program.

Unlike other banks the regulator investigated, CBA says it does not intend to repay these customers.

What are the CBA fees and why are customers upset?

The fees in question were charged on high-fee transaction accounts, even though many of the affected customers were eligible for low- or no-fee alternatives.

Under the Banking Code of Practice, banks are required to identify low-income customers and promote basic, low-to-no fee accounts.

Consumer watchdog Choice has launched a petition calling on Australia's largest bank to refund the money.

"We're absolutely appalled by CBA's decision not to refund customers living on low incomes, while other major banks have committed to provide refunds to some customers," says Andy Kelly, Choice's deputy director of campaigns.

"These are some of the most vulnerable people and the least able to afford to line the bank's pockets. People are rightly outraged by yet another bank scandal that CBA is refusing to make right."

What was ASIC's banking fees investigation about?

2024: Initial refunds after Indigenous banking report

The controversy began in July 2024, when ASIC released Report 785: Better Banking for Indigenous Consumers.

It focused on four banks:

• Bendigo and Adelaide Bank
• ANZ
• Westpac (including its subsidiaries St George, BankSA and Bank of Melbourne)
• CBA (including Bankwest)

The report found First Nations customers on low incomes were being charged excessive fees on everyday accounts, even though they were eligible for cheaper options.

In response, the banks promised $28 million and move over 200,000 customers to low-fee accounts.

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