Major Australian Banks to Compensate Millions Over Unjust Fees
Major Australian Banks to Compensate Millions Over Unjust Fees
1
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
In an unexpected windfall for numerous Australians, several leading banks are set to return millions of dollars after imposing unjust fees on their customers.
This comes in response to an investigative report conducted by the Australian Securities and Investments Commission (ASIC).
The investigation has illuminated that approximately two million Australians, including a significant number from lower income brackets, such as those receiving Centrelink payments, have been subjected to unnecessary high-fee banking products offered by major players including Commonwealth Bank, Westpac, Bendigo and Adelaide Bank, and ANZ.
As a resolution, these banks are required to issue repayments totaling $28 million, identified in the "Better Banking for Indigenous Consumers" analysis by ASIC. Notably, the subject of overcharging primarily affected customers already struggling financially, complicating their situations further.
Based on the original story by NewsWire, several customers have taken to social platforms expressing both confusion and relief upon realizing unexpected deposits. One Commonwealth Bank customer exclaimed about an unexpected deposit of $475.49, while another announced receiving $777.64 without prior knowledge of the reimbursement.
ASIC Commissioner Alan Kirkland criticized the affected banks’ earlier practices which required disadvantaged clients to navigate convoluted mechanisms for relocating to more appropriate account types. These often included ‘opt-in’ hurdles, not easily accessible to all customers, sometimes necessitating prolonged travel to complete required formalities.
In response to ASIC’s ultimatum, mentioned in the original report by NewsWire and witnessed by millions, these financial giants have begun transitioning over 200,000 patrons into lower-fee accounts. Consequently, customers are projected to collectively save around $10.7 million annually going forward.
This decisive movement by ASIC underscores the necessity for banks to streamline services, enabling customers-from all demographic spheres-to access fiscally sensible and customer-friendly banking solutions. The institution of this correction provides a much-needed safety net for economically vulnerable individuals across the region.
The refund process commenced and will persist over an 18-month interval, ensuring every affected consumer receives their due reimbursement efficiently. Customers are urged to monitor their accounts over this period to confirm received payments.
This financial rectification serves as a potent reminder of the importance of regulatory oversight in protecting consumer interests, particularly as the banking landscape evolves amid technological advancements and economic fluctuations.
Published:Friday, 4th Oct 2024 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
In a significant move to address the rising cost of living and intergenerational inequality, the Australian government has enacted legislation reducing student loans by 20%. This policy change, effective from June 1, 2025, results in over A$16 billion in debt relief for approximately 3 million Australians. For graduates with an average loan balance of A$27,600, this equates to a reduction of A$5,520. - read more
In a landmark ruling, Australia's Federal Court has imposed a A$20 million fine on RAMS Financial Group, a subsidiary of Westpac, for serious misconduct in its home loan practices. Between June 2019 and April 2023, RAMS engaged in activities such as using falsified payslips to approve loans, dealing with unlicensed mortgage referrers, and failing to maintain proper oversight. - read more
In its third-quarter update for 2025, ANZ Group, Australia's fourth-largest bank by market value, reported a significant rise in customer deposits and net loans and advances. Customer deposits increased by A$19 billion, while net loans and advances saw a 2% uptick. This growth is attributed to the expansion of the bank's home lending business within the domestic retail division. - read more
In today's financial climate, many Australians find themselves exploring options to manage and optimise their financial commitments. One option gaining popularity is loan refinancing. But what exactly is loan refinancing, and how can it benefit you, especially without negatively impacting your credit score? - read more
Welcome to our ultimate guide on maintaining a healthy credit score. Whether you're just starting your credit journey or you're an experienced borrower, understanding how to keep your score high is crucial. - read more
Financial hardship occurs when an individual is unable to meet their financial obligations due to a variety of circumstances. This could stem from a loss of income, unexpected expenses, or rising living costs that outweigh financial resources. - read more
Need Help Finding a Loan?
Find out now if you qualify and compare
rates, offers and options from multiple lenders - without a credit check!
All finance quotes are provided free (via our secure server) and without obligation. We respect
your
privacy.
Knowledgebase
Jumbo Loan: A mortgage loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA).
