Sydney, Australia – Over $93 Million in Refunds Promised to Low-Income Customers After ASIC Review Australian banks have committed to refunding more than $93 million to over 920,000 low-income customers following a review by the Australian Securities and Investments Commission (ASIC) into high bank fees.
The commitment is part of a broader review into financial harm incurred through dishonour, overdraw, and account-keeping fees on transaction accounts.
This follows a previous report by ASIC into excessive fees charged to low-income First Nations customers, which led to refunds of over $33 million to more than 150,000 customers.
ASIC’s latest review found that banks will refund an additional $60 million to more than 770,000 customers across the country.
Four banks – ANZ, Bendigo Bank, Commonwealth Bank of Australia, and Westpac – have committed to paying back more than $93 million in total refunds to over 920,000 low-income customers.
ASIC Chair Joe Longo said that despite improvements made by banks, there is still more work to be done.
“It should not take an ASIC review to force $93 million in refunds or make banks assess their processes to ensure the trust and expectations placed in them are justified,” Mr. Longo said.
ASIC Commissioner Alan Kirkland noted that the review revealed a “much wider problem” affecting customers nationwide, beyond the initial focus on low-income First Nations customers.
“What started as an initiative focused on addressing avoidable bank fees for low-income customers in regional and remote locations, particularly First Nations consumers, revealed a much wider problem affecting customers nationwide,” Mr. Kirkland said.
In response to the review, banks have taken various steps to improve customer access to low-fee accounts.
Three of the four participating banks – ANZ, Bendigo Bank, and Westpac – have committed to migrating over 815,000 low-income customers from high to low-fee accounts.
Seven additional banks have reviewed and improved their migration processes, while nine banks have made it easier to access low-fee accounts.
Consumers are encouraged to challenge their banks to ensure they are in the best account for their needs, and banks are urged to proactively identify low-income customers and move them to low-fee accounts.
For more information, customers can contact their banks directly or visit the ASIC website.