CommBank won't refund $270 million in excessive fees

The battle lines have been drawn on excessive bank fees charged to battlers. And it looks like neither side - the nation's largest bank in one corner, and consumer group CHOICE in the other, is giving an inch.

CHOICE continues to support low income Australians who've been hit by high bank fees.

Earlier this year, Money reported on a petition launched by CHOICE calling on the Commonwealth Bank to refund excessive fees charged to low income customers (those who rely on Centrelink payments).

It follows two reports from money watchdog ASIC, which found millions of low income earners were being stung by high bank fees.

That's despite banks being required to help these customers access basic, no or low-fee accounts.

Following ASIC's first report, which focused on Indigenous Australians, CommBank handed over around $25 million in "goodwill payments" to approximately 87,000 accounts.

The practice of excessive fees was widespread

A second ASIC review found the practice of hitting low income earners with high fees was not only widespread across a number of banks, it also extended well beyond Indigenous customers.

As a result of the expose, ASIC reported in July 2025 that the banks involved have agreed to refund more than $93 million.

But not the Commonwealth Bank.

The goliath of Australian banking, which reported a record $10.1 billion profit in 2024-25, is refusing to repay the $270 million it pocketed in high fees from low income earners between 2019 and 2024.

The bank's refusal to budge is getting under the skin of plenty of Australians.

A national poll by CHOICE found 9 in 10 (88%) people think the Commonwealth Bank should refund the fees it charged to low-income customers, who were eligible for low or no fee accounts.

CommBank's view - customers knew about the fees

It's not as though CommBank doesn't have the cash to refund the fees.

The bank's latest annual report shows it is sitting on an eye-watering $49.6 billion in notes and coins.

A CBA spokesperson explains the bank's position, saying, "The concession customer group is a diverse cohort, including customers with varying levels of income, savings and home ownership.

"The fees ASIC references were disclosed to customers, incurred based on their individual use of their accounts, and charged in accordance with their terms and conditions."

CommBank adds that it contacts eligible concession customers annually to let them know about the availability of the bank's Streamline Basic account, which charges zero monthly, overdraft or access fees to concession card holders.

From there it's up to each customer to decide if they would like to switch products.

But CHOICE isn't buying it.

What CHOICE says - it doesn't pass the pub test

Morgan Campbell, Head of Policy at CHOICE, says, "Australians know bad bank behaviour when they see it.

"CommBank wasn't the only big bank keeping people in accounts they shouldn't have been in, but they're the only ones who have point blank refused to put it right."

Cambell adds, "These were unfair fees, they should never have been charged. CommBank needs to do the decent thing and refund them. By continuing to dig in, they're thumbing their nose at ASIC, their customers, and public opinion."

Bettina Cooper, Senior Financial Counselling and Strategy Lead at Mob Strong Debt Help, says, "Penny pinching on account fees received from low income people doing it tough in a cost-of-living crisis while making super profits is not great optics. Particularly when your rivals are stepping up and doing the right thing and returning fees, some with interest."

What Australians think - and a lesson to be learned

To date, over 21,000 people have signed the CHOICE petition calling on CommBank CEO Matt Comyn to refund the excessive fees.

If you're interested, you can add your name by heading to the CHOICE website.

CommBank hasn't been entirely inflexible. It has "temporarily paused certain fees" including overdrawn and monthly account keeping fees for eligible concession customers.

The bank's spokesperson adds, "Where we consider customers have incurred unusually high fees, we will consider goodwill adjustments where appropriate."

While CHOICE will continue to champion fair banking for all, there is a clear lesson to be learned from the whole sorry saga.

Always read the fine print of any financial product.

Even something as simple as an everyday bank account can be surprisingly expensive if you aren't 100% clear on what you're signing up for.

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