Banking Giant Defends Controversial Fees as Shareholder Property
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 constitute an appropriation of shareholder money.
Commonwealth Bank's Mat Comyn made the controversial remarks during a parliamentary committee hearing in Canberra, where he mounted a fierce defence of charging fees according to the bank's terms and conditions.
Regulator Uncovers $270 Million in Excessive Charges
The Australian Securities and Investments Commission revealed in July that CBA and its subsidiary Bankwest had charged approximately $270 million in fees to about 2.2 million low-income customers over five years.
These charges included account-keeping, dishonour and overdraw fees that the regulator deemed excessive. The disclosure comes as the Commonwealth Bank reported a record cash profit of $10.3 billion in the most recent financial year.
While defending the fees, Comyn acknowledged the public perception, stating: "If I was you ... I'd be looking at me and thinking, 'Well you work for a financial institution, your institution makes lots of money, why don't you just give that money back?'"
Contrasting Approaches Among Banking Peers
In stark contrast to CBA's position, Westpac's CEO Anthony Miller told the same parliamentary committee that his bank was fully refunding nearly $10 million in fees charged to low-income customers.
"We have agreed to refund those fees," Miller confirmed. "We are now proceeding through the cohort identified by Asic in July 2024."
The Westpac boss detailed that the bank would automatically migrate current and future eligible customers into special low-fee accounts, with customers needing to opt out rather than opt in. Miller committed to completing all refunds by March next year.
Consumer Advocates Condemn CBA's Position
Morgan Campbell, head of policy at consumer group Choice, delivered a scathing response to Comyn's shareholder money argument.
"He's got it backwards," Campbell stated. "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 emphasised that "his shareholders should never have had it in the first place" and called on Commonwealth Bank to follow other institutions in issuing bulk refunds to affected customers.
Despite his defiant stance, Comyn did leave open the possibility of making some payments as a "goodwill gesture" while maintaining that the fees identified by Asic were not unlawful.
The contrasting approaches between Australia's two major banking institutions have highlighted significant differences in corporate responsibility and customer treatment philosophies within the financial sector.
