Top bank accused of overcharging businesses millions
Tens of thousands of business owners have been slugged with millions in hidden fees by the nation’s biggest bank, ASIC alleges.
Thousands of business clients of Australia’s biggest bank were allegedly overcharged millions through secret fees.
The Australian Securities and Investments Commission commenced civil penalty proceedings against Commonwealth Bank of Australia on Thursday.
The regulator alleged about 42,000 customers with CommBiz were overcharged $8.5 million through fees they were not told about.
CommBiz is the bank’s online platform for business clients and the allegations involve fees charged between November 2020 and May 2025.
ASIC alleged the platform’s terms and conditions misled by failing to accurately disclose all the fees customers would face.
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The fees related to direct debit and credit payments.
The bank informed customers they would be charged a fee for payments involving a third-party account.
But ASIC alleged the bank also charged an additional, undisclosed fee for the related movement of funds in or out of the customer’s CommBiz account.
“For example, a small business paying the fortnightly wages of 10 employees from two CommBiz accounts was charged 12 fees: 10 for the payments to its employees and another two undisclosed fees for the money being withdrawn from its own accounts,” the regulator said in a statement.
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ASIC commissioner Alan Kirkland said the bank had failed to nail the basics.
“We allege Commonwealth Bank broke a basic promise to its business customers, many of them small businesses, that the fees it told them they would pay were the fees they would actually be charged,” he said.
“Small businesses are busy enough. They should not have to scrutinise every transaction to make sure that their bank is charging them the right fees.”
ASIC alleged misleading terms and conditions were in place for 19 years, since the launch of CommBiz in 2006.
The regulator further alleged the bank received customer complaints over the fees from at least 2015.
An internal audit in 2016 identified overcharging of direct debit fees as well, ASIC said.
Allegedly misleading statements were not identified and corrected, and the bank allegedly failed to act efficiently, honestly and fairly, the watchdog added.
ASIC is seeking declarations, pecuniary penalties, adverse publicity orders, ancillary orders and costs but the matter is not yet listed for case management.
The bank previously completed a remediation program covering the period from December 1, 2006, to present for past and current CommBiz customers.
The action resulted in more than $26.4 million in remediation payments to approximately 93,000 customers, including about 40,000 small businesses.
Commonwealth Bank did not immediately respond to a request for comment.
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