Despite posting billions of dollars in profit, the Commonwealth Bank is holding out against paying 270 million dollars in refunds to low-income earners incorrectly charged excessive bank fees. Other banks have agreed to refund 60 million dollars in fees charged to people on low-income government benefits after an investigation by the corporate watchdog.
00:00Niggina woman Susan Potts is among thousands of Australians refunded money after being wrongfully charged 10 years of bank fees.
00:10The Broome resident had a high fee account instead of a low fee account for people on government assistance.
00:17We've been taken advantage of for the last 10 whatever years and there's something is going to be done about it.
00:26The corporate watchdog ASIC last year recommended $33 million be repaid to Indigenous customers by the Commonwealth, ANZ, Westpac and Bendigo banks.
00:36Now it's revealed other low income customers could see a further $60 million.
00:41ANZ, Westpac, Bendigo and several smaller banks have agreed to pay.
00:45But the Commonwealth Bank including Bankwest is holding back $270 million despite recording multi-billion dollar profits.
00:55We are going to monitor the action that all banks including CBA take in response to this report and if we see continued problems we may take further action.
01:05ASIC sees about 1 million customers have already been moved to low fee accounts.
01:10While some refunds will be paid automatically, people should contact their bank to find out if they're eligible.
01:17But that's easier said than done for people in remote locations.
01:20Badijawi woman Bernadette Angus doesn't know if she'll see a cent.
01:25It'll make a lot of difference because that's the thing that we're looking for and hoping to help us out.
01:32Our clients don't have street delivery of mail, they don't have a home computer, they don't have a desk and a chair, they don't have a home internet connection and they have no way of storing documents.
01:42And the banks need to wake up.
01:44The ABC asked the Commonwealth Bank about the $270 million in fees the bank charged between 2019 and 2024.
01:53In a statement, the bank said the fees were charged in accordance with terms and conditions but it would consider goodwill adjustments where appropriate.
