The chief executive of Australia's largest bank has sparked outrage by suggesting that repaying hundreds of millions in 'excessive fees' to low-income customers would amount to taking money from shareholders.
Banking giant defends controversial fees
During a parliamentary committee hearing in Canberra, Commonwealth Bank CEO Mat Comyn mounted a fierce defence of the bank's decision to retain approximately $270 million in fees charged to about 2.2 million low-income customers over five years.
The Australian Securities and Investments Commission identified these charges - including account-keeping, dishonour and overdraw fees - as excessive in July 2024.
Comyn acknowledged the public perception that the bank, which reported a record cash profit of $10.3 billion in the most recent financial year, should simply return the money. However, he insisted the fees were charged according to the bank's terms and conditions and weren't improper.
Shareholder interests versus customer rights
The banking executive delivered his most controversial statement when he described potential refunds as an 'appropriation of their property' referring to shareholders.
'It's not merely a question of just handing the money over,' Comyn told Labor MP Ed Husic. 'It's, of course, not my or our money. It's the money of our owners.'
While Comyn maintained the fees weren't unlawful, he did suggest the bank might make some 'goodwill' payments to certain customers.
Consumer advocates fire back
Morgan Campbell, head of policy at consumer group Choice, immediately challenged Comyn's position, stating the CEO had 'got it backwards'.
'Before this money was in the pockets of Commbank shareholders, it was in the bank accounts of Australians on low incomes, and it should never have been taken out,' Campbell asserted.
'His shareholders should never have had it in the first place. The other banks issued bulk refunds to at least some of their customers months ago. It's time for Commbank to stop making excuses and put this right.'
Contrasting approaches among major banks
While Commonwealth Bank resists full refunds, Westpac has taken a different approach. Westpac CEO Anthony Miller told the same parliamentary committee that his bank would fully refund nearly $10 million in fees charged to low-income customers.
'We have agreed to refund those fees,' Miller confirmed, adding that the process would be completed by March next year.
Westpac will also automatically migrate eligible customers to special low-fee accounts, requiring people to opt out rather than forcing them to navigate complex banking systems to access fairer terms.
The stark contrast between Australia's two banking giants highlights the ongoing debate about corporate responsibility and consumer protection in the financial services sector, particularly concerning vulnerable customers.
