Commonwealth Bank, Westpac, Bendigo and Adelaide Bank and ANZ to refund customers after overcharging

Millions of Aussies will get money deposited back into their account after it was found major banks overcharged.

Up to two million Australians will be refunded money into their bank accounts following an investigation from the Australian Securities and Investments Commission (ASIC).

The investigation found Commonwealth Bank, Westpac, Bendigo and Adelaide Bank and ANZ kept millions of customers who were on low incomes, including those on Centrelink payments, in high-fee accounts.

The two million customers will be refunded $28 million altogether, according to the Better Banking for Indigenous Consumers report.

The corporate watchdog found banks were keeping Aussies on low incomes in high-fee accounts. Picture: NewsWire / John Appleyard

Some people have reported already seeing the money drop into their account.

“I just got paid $475.49? I’m also confused but happy lol,” one Commonwealth Bank customer said on social media.

“I got this too. They paid me $777.64… I have no idea what’s going on,” another customer replied.

Earlier, ASIC Commissioner Alan Kirkland said some banks had caused financial stress to Aussies already on low incomes.

“Banks knew that many of these customers on low-incomes were in inappropriate high-fee accounts, and it has taken ASIC’s intervention to force them to act,” Mr Kirkland said.

“Before our review, most banks only provided their customers with difficult ‘opt-in’ processes for switching to low-fee banking options, including forcing some consumers to travel hundreds of kilometres to their nearest bank branch.

The corporate watchdog found banks were keeping Aussies on low incomes in high-fee accounts. Picture: Getty

“Banks need to ensure they have systems and processes in place so customers on low incomes can easily transition to low-fee accounts, regardless of their location.”

The banks listed in the report have since moved more than 200,000 customers into low-fee accounts.It’s understood this action has saved customers an estimated $10.7 million in future yearly savings.

Money will be deposited back into bank accounts over the next 18 months.

- With NCA Newswire

Originally published as Commonwealth Bank, Westpac, Bendigo and Adelaide Bank and ANZ to refund customers after overcharging