People in Australia are urging Commonwealth Bank of Australia (CommBank) to return around 270 million dollars they believe were unjustly charged in fees.
Commonwealth Bank Under Fire for Refusing to Refund Excessive Fees
The Commonwealth Bank (CBA) is facing mounting pressure to refund over $270 million in excessive fees charged to low-income customers, following a petition launched by consumer advocacy group CHOICE. The bank has been criticized for its slow response and inadequate support for affected customers, despite calls from the Australian Securities and Investments Commission (ASIC) and other banks committing to refunding over $93 million collectively.
CBA's refusal to refund the full amount has been a point of contention, with financial counselling Australia and CHOICE highlighting the bank's "glaring standout" status in this regard. The bank, as Australia's largest and most profitable, is expected to take a more proactive approach in supporting its low-income customers.
The rising public pressure is evident in the nearly 20,000 signatures the petition has gathered in just over a week. The community's outrage is palpable, with people affected by the fees, CBA customers, and financial counsellors all voicing their support.
CBA has announced it will make some "goodwill payments," but maintains that the fees charged were properly disclosed to customers. However, ASIC Commissioner Alan Kirkland has stated that the fees charged were not acceptable for low-income customers, and CHOICE deputy director of campaigns, Andy Kelly, has expressed that the bank should be able to refund customers from their profits.
CHOICE, a consumer advocacy group operating for over 60 years, does not take ads or sponsorship, ensuring their advice is free from self-interest. Members of CHOICE receive access to expert reviews, independent product testing, and advice, helping them make informed decisions. The CHOICE Community forum is a place for consumers to engage with each other and the organization, sharing their thoughts and asking questions.
In February, CBA celebrated a $5.1 billion half-year profit, raising questions about why the bank is reluctant to refund the excessive fees. CBA's slow response and refusal to fully refund the fees have led to a public backlash, with many people tired of banks treating customers poorly.
As the petition continues to gather momentum, CBA will need to address these concerns and take action to support its low-income customers and regain the trust of the community.
- CHOICE, a long-standing consumer advocacy group, has initiated a petition against the Commonwealth Bank (CBA) due to its refusal to refund excessive fees, causing mounting pressure on the bank.
- ASIC Commissioner Alan Kirkland has criticized the fees charged by CBA, stating that they are not acceptable for low-income customers, aligning with CHOICE deputy director of campaigns, Andy Kelly's view that the bank should refund customers from their profits.
- Amidst the general-news of CBA's reluctance to refund the excess fees and the subsequent public outcry, some major campaigns in the realm of politics and business are advocating for reform, aiming to ensure that banking practices prioritize fairness and protect low-income customers.
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