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ABC News
4 days ago
- Business
- ABC News
Banks to refund $60m of 'excessive' fees but CommBank withholds $270m
Thousands of Australians wrongly slugged more than $60 million in excessive bank fees could soon get a refund, but the national corporate regulator says Commonwealth Bank customers may not receive a cent. The Australian Securities and Investments Commission (ASIC) today revealed it had put banks on notice for incorrectly charging low-income earners who receive Centrelink payments, such as JobSeeker and Age and Disability Support payments. While the watchdog said a review of 21 banks found 800,000 customers were eligible for refunds, millions of Australians could be impacted. It comes one year after the corporate watchdog found four of the country's banks, which had a significant number of First Nations customers, had caused "financial distress". Susan Potts lives in Broome, 2,200 kilometres north of Perth, and was recently refunded ten years of fees charged by the Commonwealth Bank. She said she was only made aware of the charges after Kimberley financial counsellor Alan Gray spotted the fees in her bank statements while investigating an unrelated scam. "They were taking [fees] all these years and we're only on low income, all on disability, so it's a bit unfair," Ms Potts said. "It's just nice this is coming to the surface. We've been taken advantage of for the last 10 years." Mr Gray applied for Ms Potts' refund in May but said he was unsuccessful until the bank "did a U-turn". "I am absolutely furious with Commonwealth Bank," he said. "This is the richest bank in Australia profiting from the poorest people on the continent. ASIC's first report revealed the Commonwealth Bank, Westpac, Bendigo Bank and the ANZ knowingly kept more than 150,000 Indigenous customers in high-fee accounts despite qualifying for an account with minimal charges. That report led to a promise of $33 million in refunds. The latest ASIC report stated ANZ would commit to return $47.9 million, Westpac promised more than $9.9 million, while eligible Bendigo Bank customers will receive a share of $155,000. But the corporate regulator said Commonwealth Bank — including subsidiary Bankwest — would not refund the $270 million it had charged low-income customers between July 2019 and October 2024. Instead the bank said it would move 1.5 million eligible customers to a yet-to-be-approved 'new nominal fee account'. "That will address problems going forward for those people, but what it doesn't do is set things right for the fees they've been charged in the past," ASIC commissioner Alan Kirkland said. It is a similar story in other regional and remote communities. In Djarindjin, almost 200 kilometres away from the nearest bank branch, residents said there was confusion over who was entitled for a refund. Nyikina woman and Commonwealth Bank customer Audrey Shadforth said she only found out about the initial refunds through word-of-mouth. "I remember one of my family members got some money back," she said. When the ABC met with Ms Shadforth she had just received a letter confirming she would be repaid $400. Djarindjin mother and Bardi-Jawi woman Jenaya Cox said she did not know if she was eligible. "It would help me out with the bills I need to pay," she said. "I have a daughter now so it's a bit hard." Djarindjin financial counsellor Veronica Johnson said many of her remote clients had already been subject to financial abuse in the past. "I believe some people got paid, other people didn't. "It's just a little bit of a shemozzle in relation to people being given a fair go." ASIC's report found some banks had made progress to "better understand First Nations customers". Some institutions increased the number of interpreters on designated customer care helplines, while others had offered cultural awareness training to staff. But both financial counsellors agreed banks should do more. "It doesn't matter how many times a financial counsellor tells the big banks there is no street delivery of mail in the outback — they never, ever get the message," Mr Gray said. "I feel a lot more could be done to communicate in a fair and equitable way so people can understand what is going on," Ms Johnson said. The ABC contacted ANZ, Westpac, Bendigo Bank and the Commonwealth Bank for comment. Westpac and Bendigo Bank did not provide an official comment. An ANZ spokesperson said it had made "a number of changes" since ASIC's first report and "taken a deliberate decision to expand its remediation payments, leading to a larger cohort of customers refunded in fees and interest". The spokesperson said an "expansive approach to remediation is the right thing to do." A Commonwealth Bank spokesperson said it had already made repayments of $25 million in relation to ASIC's first report on "a goodwill basis". However, in relation to the $270 million ASIC's latest report cites should be refunded, the spokesperson said the fees "were disclosed to customers and were charged in accordance with their terms and conditions". "Where customers have incurred unusually high fees we consider goodwill adjustments where appropriate while continuing to provide access to lower-fee options," the spokesperson said.
Press and Journal
24-04-2025
- Automotive
- Press and Journal
Inverurie driving instructor lifts lid on reasons behind six-month wait for tests
An Inverurie driving instructor has seen learner drivers travel from London to the north-east to sit their tests as the UK grapples with a test backlog affecting local people in Aberdeenshire. Inverurie and District Driving School Association says practical tests are not available in the area with learners facing waits of up to six months. Among its 27 instructors, the organisation estimates 135 learners are waiting to book their practical test as the crisis deepens. Alan Gray, chair of the association, told the P&J that until recently tests were still 'quite easily' available at test centres in Aberdeen. But he warned this led to learner drivers coming to the region from other parts of the UK to get a slot, including as far afield as London. Average waits in Scotland at the end of March were 20.5 weeks compared to 22.4 weeks in England. Mr Gray, who has worked as a driving instructor for the past nine years, said pressure include a backlog in tests as a result of the Covid pandemic and recruitment challenges among external examiners. Meanwhile, he said the industry is dealing with problems caused by test-buying 'bots' who purchase the tests in bulk. 'They will grab all the tests that are available', he said. 'It's immoral but not illegal. A £62 test will then be sold off for up to £500. 'There should be a system where companies cannot go out and sell them.' On Wednesday, UK government Transport Secretary Heidi Alexander told MPs her department aimed to end the backlog across the country by summer next year. The Labour politician plans to ask people in other DVSA roles who are qualified, but no longer examine, to temporarily 'return to the frontline', while also reintroducing overtime pay incentives for everyone delivering driving tests. She also intends to accelerate a consultation to investigate the potential abuse of the driving test booking system and prevents bots from accessing tests. Mr Gray, who runs AG Driving Academy, says he would support changes being introduced to make sure companies cannot sell on these tests. He also thinks there is an argument for learner drivers to have to sit their tests in the geographical area in which they live. Mr Gray says he hears all the time that young adults are keen to gain their 'freedom' by driving. He warned the delays could hold back learner drivers looking to pursue particular education or work opportunities. Gordon and Buchan MP Harriet Cross wrote to the Driver and Vehicle Standards Agency (DVSA) after being contacted by Inverurie drivers. She said: 'These driving test delays are having real-life implications for thousands of people who need a licence to get to education or work.' The DVSA does not run, approve or endorse any cancellation finder apps or services. They say any tests booked outside of the official DVSA booking site could be a scam. Pauline Reeves, DVSA's director of driver services, said since December they have made 'significant progress' on implementing their plan to reduce waiting times. However, she acknowledged customers are 'not seeing the immediate effects'. Ms Reeves said the further action announced on Wednesday will help 'accelerate those measures'.
