The Commonwealth Bank says it will refund its customers who were charged fees for no service, after coming under fire at the banking royal commission earlier this year.
CBA said, in a statement, it would pay back any “unauthorised advice fees” it charged to dead customers (with interest) in the past seven years.
The bank has audited 142,000 accounts, and so far identified 12 deceased estates being charged unauthorised fees between April and June 2018.
As part of its “remediation program”, CBA will also scrap “certain fees on legacy wealth products” from January 2019 (worth about $25 million annually) and rebate all grandfathered commissions to Commonwealth Financial Planning customers (valued at $20 million per year).
“The changes announced today continue the process of reform underway in our wealth management businesses and form part of our response to specific issues identified this year through the royal commission,” CBA Wealth Management chief operating officer Michael Venter said.
“Charging unauthorised advice fees to deceased estates is unacceptable.”
More to come.