Following a review by the Australian Securities and Investments Commission (ASIC), four Australian banks will return a total of 28 million AUD (approximately 18.95 million USD) to low-income customers who were kept in high-fee accounts despite being eligible for lower-fee products.
A report released on Monday indicates that ANZ, Commonwealth Bank of Australia, Bendigo and Adelaide Bank, and Westpac collectively charged at least 2 million customers high fees in high-fee accounts.
In July 2023, ASIC wrote to these banks, requiring them to improve their processes and refund past fees incurred by low-income customers in high-fee accounts.
ASIC Commissioner Alan Kirkland stated: "Banks were aware that many low-income customers were in unsuitable high-fee accounts, but only took action following ASIC's intervention."
According to the Australian Banking Code of Practice, customers receiving certain government benefits are entitled to low-fee accounts. However, the report found that many of these customers remained in high-fee accounts, affecting their savings.
A spokesperson for Bendigo and Adelaide Bank noted: "We acknowledge there is still more work to be done. We will continue to take additional measures and seek new ways to improve customer outcomes."
The report also mentioned that, following the review, these banks have moved over 200,000 customers to low-fee accounts, saving them approximately 10.7 million AUD annually.
