CommBank reversed its refusal and will refund $68m in fees to low-income customers
Five months after refusing to refund any of $270m in wrongly charged fees, Commonwealth Bank agreed to pay $68m back to concession customers.
What was changed
In July 2025 the Australian Securities and Investments Commission put Commonwealth Bank on notice after a review of 21 banks found low-income earners receiving Centrelink payments had been incorrectly charged excessive fees through accrued account-keeping, dishonour and overdraw charges. At CommBank the wrongly charged total was $270 million, accumulated between July 2019 and October 2024.
ANZ, Westpac and Bendigo Bank committed to almost $60 million in combined refunds, but Commonwealth Bank refused, withholding the full $270 million. For months the bank publicly said it had done nothing wrong and should not have to refund a cent, according to West Australian financial counsellor Alan Gray, who represents First Nations clients in the Kimberley.
In December 2025 the bank reversed course, announcing it would refund 'relevant concession customers who have incurred unusually high fees' a total of $68 million, beginning in February. The promise brings its total 'goodwill payments' to $93 million, including $25 million returned under an earlier ASIC report into high fees for First Nations customers.
Why it worked
ASIC's report made the incorrect charges undeniable, isolating CommBank as the only major bank still refusing refunds.
The $60 million committed by ANZ, Westpac and Bendigo left CommBank visibly outside the industry's position.
Financial counsellors' public campaigning kept the withheld $270 million a live reputational story.
ASIC's stated preference to resolve this 'not through litigation or formal action' signalled the alternative was court.
What can be applied
Delaying a remedy you will eventually pay multiplies the trust cost: refunding a quarter of $270m after months of public denial left even the regulator welcoming the change but disappointed.
Aftermath
Payments begin in February, with the bank contacting eligible customers; ASIC commissioner Alan Kirkland welcomed the change but said it was 'disappointing' many people charged excessive fees may not receive a cent, and the watchdog will continue monitoring the commitment. Gray called the partial refund 'a logical and ethical contradiction' and urged customers to contact financial counsellors rather than wait.