CBA refunds $7.6m after failing to deliver on lower fees, interest rates
Commonwealth Bank discovered last year it had not fully applied discounted interest rates, preferential savings rates and fee waivers. Picture: Darren England. Source: News Corp Australia
More than 8000 Commonwealth Bank customers will share in $7.6 million in refunds after the bank failed to deliver on a promise of lower fees and interest rates.
The bank discovered last year it had not fully applied discounted interest rates, preferential savings rates and fee waivers in its award-winning AgriAdvantage Plus package over several years. CBA reported the errors to the corporate watchdog at the time, and is now close to finalising refunds to 8400 customers.
“Commonwealth Bank has been individually contacting affected customers to apologise, and is reimbursing outstanding amounts owed plus interest,” the bank said.
The AgriAdvantage Plus package was launched in 2005, but is no longer offered to new customers and will close for existing customers from November 12.
Canstar awarded Commonwealth Bank its Agribusiness Award in June 2014, noting the “various fee and interest rate discounts across a range of lending and deposit products” within the bank’s AgriAdvantage Plus package. The Australian Securities & Investments Commission welcomed CBA’s co-operation in resolving the issue, and its pledge to paying out refunds.
ASIC deputy chairman Peter Kell said it was important that financial services companies promptly rectified errors. “That includes restoring consumers to the position they should have been had the breach not occurred,” he said.
News of the refund comes as CBA continues to work through thousands of customer complaints stemming from the financial advice scandal that stretched from 2003 to 2012.
Source: theaustralian.com.au
AAP