As many as two million Australians could soon be or are already seeing extra money in their bank accounts following an investigation from ASIC.
The corporate watchdog released a report in July that found that ANZ, Bendigo and Adelaide Bank, Commonwealth Bank and Westpac kept millions of Aussies who were on low incomes in high-fee accounts.
These included many that relied on Centrelink payments just to get through the week.
The two million Aussies impacted, including many First Nations customers, will be refunded a total of $28million altogether, according to the Better banking for Indigenous Consumers report.
Some Aussies have already reported seeing the money turn up in their accounts.
One CBA customer shared his surprise on social media at seeing $105 pop up in his account.
I got this too. They paid me $777.64… I have no idea whats going on, said another.
I just got paid $475.49? Im also confused but happy lol, one CBA customer said.
The corporate watchdog released a report in July that found that ANZ, Bendigo and Adelaide Bank, Commonwealth Bank and Westpac kept millions of Aussies who were on low incomes in high-fee accounts (stock image of CBA ATM in Brisbane)
ASIC Commissioner Alan Kirkland earlier said the banks had caused financial stress for many Aussies who were already struggling to make ends meet.
Banks knew that many of these customers on low-incomes were in inappropriate high-fee accounts, and it has taken ASICs intervention to force them to act, Commissioner Kirkland said.
Before our review, most banks only provided their customers with difficult opt-in processes for switching to low-fee banking options, including forcing some consumers to travel hundreds of kilometres to their nearest bank branch.
So far, more than 200,000 customers have been moved into low-fee accounts, which is expected to save them $10million in future yearly savings.
The customers will receive their money back over the next 12 to 18 months.
Banks need to ensure they have systems and processes in place so customers on low incomes can easily transition to low-fee accounts, regardless of their location.
We expect all banks – not just those we reviewed for this report – to consider these findings, improve the accessibility and distribution of low-fee accounts and commit adequate resourcing to specialist First Nations services, he said.
One of the worst examples of fee harm was an ANZ low-income customer who was charged $3,606 in dishonour fees, but it was Commonwealth Bank that had the most high-fee accounts held by the low-income customers in the study.
A disability support pensioner from regional NSW was charged more than $2,280 in dishonour fees in one year
In the Alice Springs region, which has one of the largest postcodes by area and is one of the most disadvantaged in Australia, low-income customers were more likely to be charged excessive fees than in any other locality.
A total of 3,054 low-income Alice Springs customers of the four banks in the study were collectively charged more than $200,000 in fees, mostly overdraw ($115,325) and dishonour fees ($37,674).
A disability support pensioner from regional NSW was charged more than $2,280 in dishonour fees in one year, while a person on a Centrelink carers payment was charged $1,772 in account-keeping fees.