Banks forced to take action on high-fee accounts
More than a million people have already been moved to low-fee accounts, saving an expected $50 million in annual fees, according the the Australian Securities and Investments Commission's (ASIC) Better and Beyond report released on Tuesday.
The review follows the Better Banking for Indigenous Consumers report, released in July 2024, which revealed at least two million low-income Australians, who relied on Centrelink payments, had bank accounts charging high fees.
There were 21 banks included in the latest report, which found even larger numbers of low-income Australians paying too much.
"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," commissioner Alan Kirkland said.
Since July 2024, the four banks involved in the initial report- ANZ, Bendigo Bank, Westpac and the Commonwealth Bank (including Bankwest) have paid more than $33 million in refunds to the customers identified.
Three-of-those-four banks have committed to refunds to a broader group of low-income customers who have been in high-fee accounts.
The Commonwealth Bank and Bankwest have indicated they don't intend making payments to customers outside the initial cohort, ASIC's report said.
Several other banks have also reviewed the impact of high-fee accounts on low-income customers and have committed to remediation.
A further $60 million will be refunded to more than 770,000 customers as a result.
ASIC Chair Joe Longo said, while banks had made improvements during the commission's surveillance, there was still 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," he said.
"Banks need to truly hear the messages in this report - read it, review it, and ask themselves some difficult questions about what led to this situation."
Nine banks had made it easier to access low-fee accounts, while another seven had improved processes for moving customers to those types of accounts.
Six more banks were now collecting data to identify First Nations customers, following a recommendations from the commission's initial review.
"Our intervention has forced many banks to take action, but more needs to be done to ensure financially vulnerable consumers are not put in this position again," Mr Kirkland said.
"We encourage consumers to challenge their banks to ensure that they are in the best account for their needs.
"More importantly, we encourage banks to do more to proactively identify low- income customers and move them to low-fee accounts."
Banks will refund more than $93 million to low-income customers who were charged high fees on their accounts.
More than a million people have already been moved to low-fee accounts, saving an expected $50 million in annual fees, according the the Australian Securities and Investments Commission's (ASIC) Better and Beyond report released on Tuesday.
The review follows the Better Banking for Indigenous Consumers report, released in July 2024, which revealed at least two million low-income Australians, who relied on Centrelink payments, had bank accounts charging high fees.
There were 21 banks included in the latest report, which found even larger numbers of low-income Australians paying too much.
"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," commissioner Alan Kirkland said.
Since July 2024, the four banks involved in the initial report- ANZ, Bendigo Bank, Westpac and the Commonwealth Bank (including Bankwest) have paid more than $33 million in refunds to the customers identified.
Three-of-those-four banks have committed to refunds to a broader group of low-income customers who have been in high-fee accounts.
The Commonwealth Bank and Bankwest have indicated they don't intend making payments to customers outside the initial cohort, ASIC's report said.
Several other banks have also reviewed the impact of high-fee accounts on low-income customers and have committed to remediation.
A further $60 million will be refunded to more than 770,000 customers as a result.
ASIC Chair Joe Longo said, while banks had made improvements during the commission's surveillance, there was still 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," he said.
"Banks need to truly hear the messages in this report - read it, review it, and ask themselves some difficult questions about what led to this situation."
Nine banks had made it easier to access low-fee accounts, while another seven had improved processes for moving customers to those types of accounts.
Six more banks were now collecting data to identify First Nations customers, following a recommendations from the commission's initial review.
"Our intervention has forced many banks to take action, but more needs to be done to ensure financially vulnerable consumers are not put in this position again," Mr Kirkland said.
"We encourage consumers to challenge their banks to ensure that they are in the best account for their needs.
"More importantly, we encourage banks to do more to proactively identify low- income customers and move them to low-fee accounts."
Banks will refund more than $93 million to low-income customers who were charged high fees on their accounts.
More than a million people have already been moved to low-fee accounts, saving an expected $50 million in annual fees, according the the Australian Securities and Investments Commission's (ASIC) Better and Beyond report released on Tuesday.
The review follows the Better Banking for Indigenous Consumers report, released in July 2024, which revealed at least two million low-income Australians, who relied on Centrelink payments, had bank accounts charging high fees.
There were 21 banks included in the latest report, which found even larger numbers of low-income Australians paying too much.
"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," commissioner Alan Kirkland said.
Since July 2024, the four banks involved in the initial report- ANZ, Bendigo Bank, Westpac and the Commonwealth Bank (including Bankwest) have paid more than $33 million in refunds to the customers identified.
Three-of-those-four banks have committed to refunds to a broader group of low-income customers who have been in high-fee accounts.
The Commonwealth Bank and Bankwest have indicated they don't intend making payments to customers outside the initial cohort, ASIC's report said.
Several other banks have also reviewed the impact of high-fee accounts on low-income customers and have committed to remediation.
A further $60 million will be refunded to more than 770,000 customers as a result.
ASIC Chair Joe Longo said, while banks had made improvements during the commission's surveillance, there was still 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," he said.
"Banks need to truly hear the messages in this report - read it, review it, and ask themselves some difficult questions about what led to this situation."
Nine banks had made it easier to access low-fee accounts, while another seven had improved processes for moving customers to those types of accounts.
Six more banks were now collecting data to identify First Nations customers, following a recommendations from the commission's initial review.
"Our intervention has forced many banks to take action, but more needs to be done to ensure financially vulnerable consumers are not put in this position again," Mr Kirkland said.
"We encourage consumers to challenge their banks to ensure that they are in the best account for their needs.
"More importantly, we encourage banks to do more to proactively identify low- income customers and move them to low-fee accounts."
Banks will refund more than $93 million to low-income customers who were charged high fees on their accounts.
More than a million people have already been moved to low-fee accounts, saving an expected $50 million in annual fees, according the the Australian Securities and Investments Commission's (ASIC) Better and Beyond report released on Tuesday.
The review follows the Better Banking for Indigenous Consumers report, released in July 2024, which revealed at least two million low-income Australians, who relied on Centrelink payments, had bank accounts charging high fees.
There were 21 banks included in the latest report, which found even larger numbers of low-income Australians paying too much.
"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," commissioner Alan Kirkland said.
Since July 2024, the four banks involved in the initial report- ANZ, Bendigo Bank, Westpac and the Commonwealth Bank (including Bankwest) have paid more than $33 million in refunds to the customers identified.
Three-of-those-four banks have committed to refunds to a broader group of low-income customers who have been in high-fee accounts.
The Commonwealth Bank and Bankwest have indicated they don't intend making payments to customers outside the initial cohort, ASIC's report said.
Several other banks have also reviewed the impact of high-fee accounts on low-income customers and have committed to remediation.
A further $60 million will be refunded to more than 770,000 customers as a result.
ASIC Chair Joe Longo said, while banks had made improvements during the commission's surveillance, there was still 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," he said.
"Banks need to truly hear the messages in this report - read it, review it, and ask themselves some difficult questions about what led to this situation."
Nine banks had made it easier to access low-fee accounts, while another seven had improved processes for moving customers to those types of accounts.
Six more banks were now collecting data to identify First Nations customers, following a recommendations from the commission's initial review.
"Our intervention has forced many banks to take action, but more needs to be done to ensure financially vulnerable consumers are not put in this position again," Mr Kirkland said.
"We encourage consumers to challenge their banks to ensure that they are in the best account for their needs.
"More importantly, we encourage banks to do more to proactively identify low- income customers and move them to low-fee accounts."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
AU Financial Review
5 minutes ago
- AU Financial Review
ASIC test is weak excuse for big super's underinvestment in innovation
Australia's superannuation funds are among the world's largest and most powerful institutional investors. With more than $4 trillion under management, they are stewards of the financial future for tens of millions of Australians who are increasingly vocal about their role in managing climate risk. Many funds have declared climate change the most significant long-term threat to portfolio performance. But their capital allocations tell a different story. Specifically, their exposure to deep tech climate firms — where the breakthroughs needed to decarbonise hard-to-abate sectors are being developed — remains negligible.
The Age
an hour ago
- The Age
WA news LIVE: Man pulled from burning house in Mirrabooka
Latest posts Latest posts 9.41am Police pull man from burning house in Mirrabooka A man in his 60s has been pulled from his burning house in Mirrabooka after emergency services were called to the blaze in the early hours of Thursday. Police and firefighters rushed to the scene at Otago Mews about 1am this morning, with several police being the first to arrive. They soon learned a person was still inside the home, and smashed a window to get inside. 'The officers were able to find the man inside the burning home and extricate him from the premises,' a WA Police spokeswoman said. The man was taken to Fiona Stanley Hospital for treatment of significant smoke inhalation, among other injuries. The officers who saved him also suffered smoke inhalation, and one was also taken to hospital for treatment, the spokeswoman said. Firefighters managed to extinguish the blaze, but the home was badly damaged. 9.41am Across Australia and around the world Here's what's making headlines elsewhere today: White House special envoy Steve Witkoff met Russian President Vladimir Putin in Moscow hours ago, in an almost three-hour meeting that canvassed Donald Trump's threat to intensify sanctions and tariffs on Russia if an urgent move towards a ceasefire with Ukraine wasn't achieved. Trump described the meeting as 'highly productive', noting that 'great progress was made' towards ending Russia's war in Ukraine. A proposal that would see all Australians receive $3300 a year in exchange for accepting a higher and broader GST has been proposed ahead of this month's economic reform roundtable. The plan would lift the GST to 15 per cent and extend the tax on food, education, health and childcare services, and water and sewerage, with proponents arguing it would boost the budget by $28 billion a year and drive up national living standards. , days after the Indian government warned against new trade penalties. The move is designed to penalise India for its purchasing of Russian oil, as Trump continues work to negotiate an end to Russia's war in Ukraine.
Sydney Morning Herald
an hour ago
- Sydney Morning Herald
WA news LIVE: Man pulled from burning house in Mirrabooka
Latest posts Latest posts 9.41am Police pull man from burning house in Mirrabooka A man in his 60s has been pulled from his burning house in Mirrabooka after emergency services were called to the blaze in the early hours of Thursday. Police and firefighters rushed to the scene at Otago Mews about 1am this morning, with several police being the first to arrive. They soon learned a person was still inside the home, and smashed a window to get inside. 'The officers were able to find the man inside the burning home and extricate him from the premises,' a WA Police spokeswoman said. The man was taken to Fiona Stanley Hospital for treatment of significant smoke inhalation, among other injuries. The officers who saved him also suffered smoke inhalation, and one was also taken to hospital for treatment, the spokeswoman said. Firefighters managed to extinguish the blaze, but the home was badly damaged. 9.41am Across Australia and around the world Here's what's making headlines elsewhere today: White House special envoy Steve Witkoff met Russian President Vladimir Putin in Moscow hours ago, in an almost three-hour meeting that canvassed Donald Trump's threat to intensify sanctions and tariffs on Russia if an urgent move towards a ceasefire with Ukraine wasn't achieved. Trump described the meeting as 'highly productive', noting that 'great progress was made' towards ending Russia's war in Ukraine. A proposal that would see all Australians receive $3300 a year in exchange for accepting a higher and broader GST has been proposed ahead of this month's economic reform roundtable. The plan would lift the GST to 15 per cent and extend the tax on food, education, health and childcare services, and water and sewerage, with proponents arguing it would boost the budget by $28 billion a year and drive up national living standards. , days after the Indian government warned against new trade penalties. The move is designed to penalise India for its purchasing of Russian oil, as Trump continues work to negotiate an end to Russia's war in Ukraine.
