Commonwealth Bank releases $2.2m on expired travel money cards

ALREADY flush with an $8 billion profit, the Commonwealth Bank had been planning to keep $2 million of customers’ money. But then ASIC stepped in.

Bank releases travel card money

UNDER heat from the corporate cops, the Commnowealth Bank has agreed to release $2.2 million that 45,000 customers had left on expired travel money cards.

The money was going to be forfeited to the bank, which made an $8.6 billion profit in 2013-14. Now it can be reclaimed and in the future, money will not be forfeited.

The average amount on the expired cards was less than $50.

But one consumer would have lost $18,000 were it not for the intervention of the Australian Securities and Investments Commission.

Corporate cop ... ASIC Deputy Chairman Peter Kell.

ASIC is looking at 13 travel cards from nine issuers — mainly banks — to ensure consumers are not being diddled.

Travel money cards allow users to transfer funds into one or more currencies for use overseas.

ASIC deputy chairman Peter Kell said: “’Consumers should make sure they understand the fees and charges that apply to their reloadable cards. Withdrawing funds as soon as the card is no longer needed is one way to avoid paying these fees.

“ASIC is reviewing the operation of other travel cards in the market, with a particular focus on identifying any unfair contract terms or deficient disclosures. We will take action where appropriate,” Mr Kell said.

ASIC advised consumers who think they may have left funds on a CBA Travel Money Card can contact the CBA for further information about reclaiming their funds.

Originally published as Commonwealth Bank releases $2.2m on expired travel money cards