Following pressure from regulators, Commonwealth Bank of Australia (ASX:CBA) will repay $68 million to low-income customers who were charged unusually high fees for services such as dishonoured payments and overdrafts.
The bank announced that the repayments, described as "goodwill adjustments," will be made in early February, with eligible customers contacted directly—no action is required on their part.
The move follows a critical July report by the Australian Securities and Investments Commission into the impact of bank fees on recipients of government concession payments.
This investigation built on a July 2024 ASIC report highlighting the effect of banking fees on low-income First Nations customers, which prompted CBA to repay $25 million, alongside smaller repayments by Bendigo Bank, Westpac, and ANZ.
ASIC commissioner Alan Kirkland said Australian banks had now committed to refunding a total of $160 million to low-income customers nationwide.
"While this is a good outcome, it should not have taken multiple ASIC reviews and widespread criticism to compel banks to act in the best interests of their most disadvantaged customers," he said.
CBA noted that it regularly informs eligible concession customers about its low-fee Streamline Basic account, but some customers opt for accounts with additional features that may incur extra fees.
"Customers are informed of their options, and the terms and conditions of accounts are provided prior to account selection and opening," the bank said.