CBA Stands Firm Against $270 Million Refund for Low-Income Customers, Drawing ASIC Scrutiny
This report generated with Google Gemini AI and fact checked by Editorial staff
SYDNEY, NSW – July 30, 2025
The Commonwealth Bank of Australia (CBA) is facing strong criticism from consumer advocates and the financial regulator after refusing to refund an estimated $270 million in “excessive” fees charged to its low-income customers. This stance comes in the wake of a recent report from the Australian Securities and Investments Commission (ASIC), which highlighted widespread fee harm across the banking sector, particularly affecting financially vulnerable Australians.
While other major banks, including ANZ and Westpac, have committed to further refunds totalling tens of millions of dollars, CBA and its subsidiary Bankwest have indicated they do not intend to make additional payments beyond the $25 million already provided as “goodwill” to approximately 87,000 Indigenous concession customer accounts.
ASIC’s latest report, “Better and beyond: Expanding better banking outcomes to more low-income Australians” (Report 811), revealed that a “much wider problem” exists beyond the initial focus on First Nations customers. The report found that many low-income Australians, including those relying on Centrelink payments, were kept in high-fee transaction accounts despite being eligible for lower-fee alternatives.
CBA has defended its position, stating that the $270 million in fees, incurred between July 2019 and October 2024 by an estimated 2.2 million low-income customers, were “disclosed to customers and were charged in accordance with their terms and conditions.” The bank argues that these customers benefited from informal overdraw facilities attached to their high-fee accounts, providing financial autonomy and flexibility.
However, consumer groups have slammed CBA’s refusal as “appalling,” especially given the bank’s substantial profits. Bettina Cooper, Senior Financial Counselling and Strategy Lead at Mob Strong Debt Help, expressed strong disappointment, stating, “CBA knows it has unfairly pocketed $270 million in fees and seems comfortable keeping it while other banks have willingly returned it.”
ASIC Chair Joe Longo reiterated the regulator’s stance, emphasizing that “it should not take an ASIC review to force $93 million in refunds or make banks assess their processes to ensure the trust and expectations placed in them are justified.”
ASIC’s intervention has already led to over $93 million in total refunds to more than 920,000 low-income customers across the industry, with over one million customers now migrated to low-fee accounts, saving them an estimated $50 million in future yearly fees.
CBA has announced plans to transition its 1.5 million eligible high-fee accounts held by low-income customers to a new “nominal fee” account, which will feature a small monthly fee to support universal services like branches and ATMs. This new account aims to provide informal overdraft facilities without dishonour or overdraw fees, though interest may be charged on overdrawn amounts.
Despite these future changes, the current refusal to reimburse past excessive fees remains a significant point of contention. ASIC has stated it will continue to monitor banks’ responses and may take enforcement action if ongoing problems are identified. Consumer advocates are urging financially vulnerable customers to proactively contact their banks to inquire about their eligibility for refunds or to switch to more appropriate low-fee accounts.
