COMMONWEALTH Bank of Australia will refund $7.6 million to thousands of customers who were slugged with unfair fees on one of the bank's products.
According to a statement by the Australian Securities and Investments Commission, CBA has agreed to repay 8400 customers after failing to properly administer the bank's AgriAdvantage Plus package over a number of years.
CBA is not the first major Australian bank to run into trouble over charging incorrect fees on one of its products.
ANZ in April issued a statement that it will pay 8,500 customers who purchased a bundled financing planning product, Prime Access, approximately $30 million in compensation.
In July, National Australia Bank said it would repay 62,000 customers of its wealth division $25 million after short-changing its clients.
CBA's AgriAdvantage problems come as the bank works through its compensation program for clients of its financial planning arms.
So far, only 19 customers of the 8835 who have requested their files be reviewed have been compensated by CBA for receiving poor financial advice.
The bank has also compensated 1100 customers that were victims of rogue planners, paying out $52 million as a result of their claims.
According to ASIC, CBA has advised the regulator of "its intention to undertake an investigation, engage an independent expert to review its remediation process to ensure an accurate calculation of refunds, and refund all affected customers".
ASIC did not include any details of how long it would take CBA's AgriAdvantage customers to receive compensation from the bank.
"Where errors occur, it is important that they be rectified promptly and appropriately. That includes restoring consumers to the position they should have been had the breach not occurred," ASIC deputy chairman Peter Kell said.
