Commonwealth Bank to refund $2.2 million in travel money cash after ASIC raises concerns

THE Commonwealth Bank of Australia has agreed to refund $2.2 million in unclaimed cash on expired travel money cards of 45,000 customers.

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THE Commonwealth Bank of Australia has agreed to refund $2.2 million in unclaimed cash on expired travel money cards.

The Australian Securities and Investments Commission says the bank has agreed to change the cards after it raised concerns about them.

The changes will affect 45,000 customers.

Before the changes, funds left on the bank’s travel money cards for 12 months after they expired could be forfeited to the CBA. Now, those funds will not be forfeited. Instead, the CBA will hold them for three years and, if they remain unclaimed, treat them as protected unclaimed money which ASIC is responsible for.

“This will allow consumers to retrieve the money at any time in the future,” ASIC said in a statement on Wednesday.

The CBA’s cards are one of 13 travel card products from nine issuers that ASIC is reviewing.

In many cases, other card issuers charged fees which whittled away balances over time, the corporate regulator said.

“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,” deputy chairman Peter Kell said. The growing travel card market is an alternative to paying high ATM and transaction fees overseas.

Originally published as Commonwealth Bank to refund $2.2 million in travel money cash after ASIC raises concerns