Major Australian banks are set to return over $93 million to low-income customers who have been subject to exorbitant fees. This decision follows a thorough investigation by the Australian Securities and Investments Commission (ASIC). Today, ASIC announced that approximately 770,000 eligible low-income customers will receive a combined refund of $60 million due to their entitlement to lower banking fees.
This initiative forms part of ASIC’s ongoing efforts to ensure that banks reimburse account fees charged to individuals reliant on Centrelink benefits and other government concessions. Investigations have revealed that banks have been charging high fees to those who can least afford it, highlighting the need for banks to reassess their pricing structures.
ASIC Chair Joe Longo acknowledged that while banks have made progress, there remains significant work to do in this area. He remarked that such actions should not require ASIC’s intervention to prompt banks to return $93 million or to fundamentally review their processes to align with public expectations. Previous ASIC reports recorded that many low-income Australians, particularly those relying on Centrelink payments, were trapped in accounts with excessive fees.
The latest report extends the investigation to a larger number of banks, revealing an even greater number of low-income Australians facing unfair fees, especially among First Nations communities. ASIC Commissioner Alan Kirkland indicated that the cumulative value of bank refunds has nearly tripled to $93 million. Additionally, over a million customers have switched to low-fee accounts, projecting future savings of around $50 million annually.
The review process unveiled varied products and practices across the 21 banks assessed, highlighting distinct responses to the situation. Notably, three out of the four banks from ASIC’s initial report—ANZ, Westpac, and Bendigo and Adelaide Bank—have committed to expanding their refund policies to cover a wider range of low-income customers previously burdened by high fees.
Following the recent review, more than 920,000 low-income Australians will be due for refunds exceeding $93 million, illustrating the critical impact of ASIC’s monitoring and enforcement efforts on bank fee structures.