The chief executive of Commonwealth Bank Australia (CBA), Mat Comyn, has defended the bank's practice of charging fees to low-income customers, arguing that reimbursing the funds would be an 'appropriation' of shareholder money. During a parliamentary committee hearing in Canberra, Comyn stated that the fees were charged in accordance with the bank's terms and conditions and were not improper.
The Australian Securities and Investments Commission (ASIC) found in July that CBA and its subsidiary Bankwest charged approximately $270 million in fees to about 2.2 million low-income customers over five years. These fees included account-keeping, dishonour, and overdraw charges. CBA reported a record cash profit of $10.3 billion in its most recent financial year.
Comyn rejected ASIC's characterisation that every dollar of the charges was excessive. 'They were charged in accordance with the terms and conditions. (There was) nothing improper about those charges,' he said. He added that the money belongs to shareholders, not the bank, and that handing it back would be effectively taking property from owners.
In contrast, Westpac has committed to fully refund nearly $10 million in fees to low-income customers. Westpac CEO Anthony Miller told the committee that the bank would automatically migrate eligible customers to low-fee accounts and refund the full amount by March next year.
Choice policy head Morgan Campbell criticised Comyn's stance, saying he had 'got it backwards.' Campbell argued that the money should never have been taken from low-income customers and that other banks have already issued refunds. 'It's time for Commbank to stop making excuses and put this right,' he said.
