ASIC sues Commonwealth Bank over alleged CommBiz fee overcharging of business customers

Consensus Summary

The Australian Securities and Investments Commission (ASIC) has launched civil penalty proceedings against Commonwealth Bank (CBA) over allegations that the bank misled tens of thousands of business customers by charging undisclosed fees for direct debit and direct credit payments through its CommBiz service. According to both ABC and 7NEWS, ASIC claims that between November 2020 and May 31, 2025, about 42,000 customers were overcharged approximately $8.5 million due to misleading terms and conditions that failed to disclose all applicable fees. The practice allegedly began when CommBiz launched in December 2006, meaning customers were affected for nearly two decades.

The overcharging stemmed from CBA’s failure to clearly disclose fees for movements of money into or out of a customer’s account, in addition to the fees they were told they would pay. ASIC alleges that customers were charged extra fees for transactions they believed were already covered, such as payments to employees or withdrawals from their own accounts. Both outlets highlight that CBA received customer complaints as early as 2015, and an internal audit in 2016 identified the issue but did not prompt immediate corrective action, suggesting governance failings within the bank.

ASIC Commissioner Alan Kirkland emphasized the severity of the allegations, stating that small businesses—many of whom were affected—should not have to scrutinize every transaction to ensure they were charged correctly. CBA has acknowledged some of the allegations but will defend others, stating it cooperated fully with ASIC’s investigation. The bank also noted that it had self-identified the issue and completed remediation for affected customers, covering the period from December 1, 2006, to the present. This remediation resulted in over $26.4 million being paid to approximately 93,000 customers, including 40,000 small businesses, according to ABC.

While both sources agree on the core allegations and timeline, there are differences in emphasis. ABC provides specific examples, such as a business being charged 12 fees for paying 10 employees, including two undisclosed fees. It also notes that CBA temporarily ceased charging the relevant fees in June 2025 and waived them entirely from February 2026. In contrast, 7NEWS focuses more on the legal proceedings and CBA’s response, including the median and mean remediation payments as of October 20, 2026, which were approximately $85 and $442, respectively. The latter source also highlights that ASIC will seek pecuniary penalties and adverse publicity orders.

The unresolved aspect of the case, as noted by ABC, is that the court has not yet scheduled a case management hearing. Meanwhile, CBA continues to engage with ASIC to resolve the proceedings, though it disputes some of the allegations’ framing. The legal action serves as a warning to other banks about the consequences of failing to disclose fees accurately, with ASIC stressing that such practices will attract regulatory attention.