CommBank facing suit over $8.5m in small business fees
Max Aldred |
Thousands of clients of Australia’s biggest bank were overcharged millions of dollars in secret fees according to corporate watchdog allegations.
The Australian Securities and Investments Commission began civil penalty proceedings against Commonwealth Bank of Australia on Thursday over what it called systemic unlawful overcharging.
About 42,000 customers between 2020 and 2025 allegedly paid undisclosed fees each time money moved in or out of their CommBiz accounts – amounting to $8.5 million.
The fees were improperly disclosed in the terms and conditions, ASIC alleged.
The issue allegedly dated back to 2006 when CommBiz was launched.
Commonwealth Bank stopped charging the fees in June 2025 and changed its terms.
The bank accepted it did not get everything right for customers, but disputed how some allegations were formulated.
Commonwealth Bank will dispute certain aspects of the claim, or otherwise continue attempting to resolve proceedings with ASIC, a statement to the ASX revealed.
The bank had failed to nail the basics, ASIC commissioner Alan Kirkland 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,” he said.
Those businesses are especially reliant on clear banking services, Council of Small Business Organisations Australia chief executive Skye Cappuccio said.
“With small businesses already managing significant cost pressures, transparency and fairness in banking services are particularly important,” she said.
CommBiz is the bank’s online platform for business clients and the allegations specifically involved fees charged between 2020 and 2025.
ASIC alleged the payments may have amounted to “double charging” and a senior manager raised the fear in 2024, according to a court document.
The regulator explained the alleged fees were charged additionally to direct debit and credit fees.
“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accounts was charged 12 fees: 10 for the payments to its employees and another two undisclosed fees for the money being withdrawn from its own accounts,” the regulator said in a statement.
ASIC 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 about 93,000 customers, including 40,000 small businesses.
Commonwealth Bank in its statement to the ASX said it self-identified the alleged issue, reported it to ASIC and has co-operated “fully”.
“CBA has taken additional rectification steps to reduce the risk of similar incidents,” the statement read.
“As at October 20, 2026, the median payment made to affected CommBiz customers was approximately $85, and the mean payment was approximately $442, inclusive of interest.”
AAP