As many would be aware, commissioner the Honourable Kenneth Madison Hayne AC QC
conducted a Royal Commission into Misconduct in the Banking, Superannuation and Financial
Services Industry. Many issues have been identified and as a result, organisations have needed
to facilitate changes. In some organisations these changes have been small and in for some,
recommended changes have been significant. In some instances, ASIC proceedings have taken
As of December 2020, ASIC commenced proceedings against the Commonwealth Bank of
Australia (CBA). The allegations against the CBA were that the organisation had stated that they
would charge customers a certain interest rate, sent account statements stating the interest
rate charged and then due to a system error, more than 2,200 customers were charged a higher
interest rate on their overdraft accounts. These extra charges are alleged to have overcharged
interest in excess of $2.9 million (ASIC, 2020).
ASIC alleges that the CBA attempted to fix the issue manually but were unsuccessful and as a
result have continued to overcharge customers. ASIC alleges that the CBA have violated
financially services laws on 12,119 occasions (ASIC, 2020).
• CBA’s management of two financial
products; Simple Business and Business
Overdrafts between December 2011 and
March 2018 are the financial products
that these proceedings will address.
• CBA have set up a program which has
compensated 2,269 customers affected
by this issue. CBA have refunded 3.74
million dollars and their remediation has
• The CBA have been previously penalised
by ASIC for $5 million dollars in relation
to their AgriAdvatnage Plus package.
Image via CBA: