'Shame': Pressure mounts on CBA to repay $270m in fees

A new petition is calling on the Commonwealth Bank to refund excessive fees charged to low-income Australians

The Commonwealth Bank (CBA) is facing growing public backlash over its refusal to repay $270 million in fees it charged to low-income customers between 2019 and 2024.

The fees included account-keeping, dishonour and overdraw charges - often applied to people receiving Centrelink payments or other government assistance.

An investigation by the corporate regulator ASIC found CBA had charged these fees to around 2.2 million low-income customers not covered by an earlier refund program.

Unlike other banks the regulator investigated, CBA says it does not intend to repay these customers.

What are the CBA fees and why are customers upset?

The fees in question were charged on high-fee transaction accounts, even though many of the affected customers were eligible for low- or no-fee alternatives.

Under the Banking Code of Practice, banks are required to identify low-income customers and promote basic, low-to-no fee accounts.

Consumer watchdog Choice has launched a petition calling on Australia's largest bank to refund the money.

"We're absolutely appalled by CBA's decision not to refund customers living on low incomes, while other major banks have committed to provide refunds to some customers," says Andy Kelly, Choice's deputy director of campaigns.

"These are some of the most vulnerable people and the least able to afford to line the bank's pockets. People are rightly outraged by yet another bank scandal that CBA is refusing to make right."

What was ASIC's banking fees investigation about?

2024: Initial refunds after Indigenous banking report

The controversy began in July 2024, when ASIC released Report 785: Better Banking for Indigenous Consumers.

It focused on four banks:

• Bendigo and Adelaide Bank
• ANZ
• Westpac (including its subsidiaries St George, BankSA and Bank of Melbourne)
• CBA (including Bankwest)

The report found First Nations customers on low incomes were being charged excessive fees on everyday accounts, even though they were eligible for cheaper options.

In response, the banks promised $28 million and move over 200,000 customers to low-fee accounts.

2025: Wider banking review reveals bigger problem

ASIC then expanded the review, publishing a second report in July 2025 called Better and Beyond. This time it looked at 21 banks and found a widespread pattern of low-income customers being left in the wrong accounts.

"Our latest work has seen the total amount of bank refunds increase to $93 million, and over one million customers moved into low-fee accounts, saving them an expected $50 million in future yearly fees," says ASIC Commissioner Alan Kirkland.

The new report revealed that four banks had repaid $33 million from the first investigation. This included $25 million from CBA to 90,000 First Nations concession account holders for fees incurred from July 2019.

However, the bank called it "goodwill payments" rather than an act of remediation for any wrongdoing.

After the 2025 Better and Beyond report, most banks agreed to collectively repay a further $60 million to over 770,000 customers and move 820,000 customers to low-fee accounts.

The report said the refunds have provided "tangible benefits" to people who were reliant on government concession payments.

For example, Charlotte an ANZ customer on a JobSeeker payment from the Mandurah region of Western Australia, will be refunded over $5200 by ANZ (equivalent to 13 weeks of JobSeeker payments), including over $4160 in accrued dishonour fees.

But CBA refused to participate in this broader round of remediation.

According to ASIC, CBA disclosed that between July 2019 and October 2024, it charged $270 million in fees to around 2.2 million low-income customers not covered in the 2024 report.

Why hasn't CBA refunded the fees this time?

CBA told ASIC it does not intend to repay the $270 million it charged to 2.2 million low-income customers outside the original Indigenous cohort.

The bank argues that it serves more remote and regional customers than any other financial institution, and that these customers were provided value through the accounts.

"CBA considers that low-income customers benefit from informal overdraw facilities attached to its high-fee accounts, on the basis that these facilities provide customers with financial autonomy and flexibility," it told the regulator.

What do consumer advocates say about CBA's stance?

Consumer groups say CBA is out of step with the rest of the banking industry.

The Australian Banking Association recently reported that transaction account service fees have dropped significantly - from 8% of bank income in 2004 to just 2% in 2024. Banks also saved customers over $500 million last year by proactively moving vulnerable customers to low- or no-fee accounts.

But the Financial Rights Legal Centre points out that CBA remains an "outlier".

"CBA has only committed to migrating people to nominal-fee accounts, but have delayed even this inferior move, waiting to see if the ACCC will force their hand to move low-income customers to a low-fee or no-fee account," the community legal centre said in a statement.

"During this extended wait, CBA have continued to profit from the most vulnerable, collecting account-keeping, dishonour and overdraw fees from vulnerable customers - another move that will bolster their bottom line."

Bettina Cooper, senior financial counselling and strategy lead at Mob Strong Debt Help, a free nationwide counselling service for First Nations people, says the move is appalling.

"CBA is still avoiding transitioning people to an equitable low-fee or no-fee account without fee harm to low-income people including First Nations people, of which a high number historically bank with them," says Cooper.

"Shame CBA, shame!"

Even ASIC's commissioner joined the criticism.

"The CBA's approach stands in stark contrast to those of the other banks, including ANZ, which has offered refunds of around $48 million," Commissioner Kirkland said at a press conference.

"It is very clear what is the right thing for CBA to do by its customers, and they've now got an opportunity to reflect on how they stand relative to other banks and do the right thing."

CBA flags $52 million remediation costs

In a statement to the ASX on August 5, CBA told shareholders it had set aside $52 million for "domestic customer remediation" during the six months to June 30, 2025.

The bank also disclosed:

• $45 million in restructuring costs related to Bankwest becoming a digital-only bank
• $33 million for customer remediation at its New Zealand arm, ASB Bank

It is understood that these remediation costs don't relate to any specific remediation program.

However, CBA did not explain what the $52 million covers.

CBA said these costs would be excluded from its underlying expense numbers to give shareholders a "transparent view" of operational performance.

The bank will release its financial-year results on August 13 and is currently under a media blackout. Because of this, CBA did not provide comment to Money's questions.

How to check if you're owed a refund - and sign the petition

While CBA remains silent, consumer anger is growing - though it is not the first time the bank drew the ire of its customers over fees.

More than 14,000 people have signed Choice's petition calling on CBA CEO Matt Comyn to refund the money.

"We've heard from a number of people who believe they've been charged excessive bank fees despite being on low incomes, and we continue to have people contact us," says Choice's Andy Kelly.

"Approximately 2.2 million people were charged excessive fees by CBA, so if you're on a low income and believe you were affected, we encourage you to call the bank and request a refund."

You can sign the petition at action.choice.com.au.

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