The dispute is escalating between the Commonwealth Bank and the federal government as calls grow for the bank to repay up to $270 million in fees collected from financially vulnerable customers. Lawmakers claim the bank is putting shareholders ahead of fairness for disadvantaged Australians, raising wider concerns about accountability within the banking industry.
This issue arises from a recent review by the Australian Securities and Investments Commission. The report found that CBA and other banks charged excessive account-keeping and overdraft fees to low-income customers between 2019 and 2024. While banks such as ANZ and Westpac have issued partial refunds of $48 million and $9.9 million respectively, CBA has made only limited goodwill payments, primarily to Indigenous customers, and continues to oppose wider refunds.
CBA maintains that the fees were legally charged under existing contracts and are necessary to fund banking services nationwide. The bank’s executives argue that these fees help offset the cost of supporting customers who typically bring in less revenue through lending products. However, the bank has said it is reviewing the total it may refund, with internal sources suggesting that tens of millions could still be paid, though this would remain well below ASIC’s $270 million estimate.
Mounting political and public pressure could lead to long-term reform in how banks handle concession accounts. The Australian Competition and Consumer Commission is currently assessing whether to require banks to automatically transfer concession cardholders to low-fee accounts, with a decision expected in January. While CBA supports a voluntary opt-in approach, regulators and government representatives are leaning towards stronger consumer protections.
