In a world where every penny counts, especially for those who have bid farewell to the workforce, the news of additional fees can be particularly disheartening.

It's no secret that Australians over 60 are often on fixed incomes, making budgeting an essential part of everyday life.

So, when the Commonwealth Bank (CBA) announced a recent change, it's no surprise that it was met with a public outcry.

The $3 fee, which was set to be charged for withdrawing cash over the counter at a branch, post office, or over the phone from January 6, quickly became a hot topic of debate.

The backlash was swift and fierce, with customers and the federal government alike urging the bank to reconsider its decision.

In a time when the cost of living is already squeezing budgets, an additional fee seemed like a step too far for many.

Commonwealth Bank faced backlash over a new $3 cash withdrawal fee. Credit: Facebook / Commonwealth Bank

In response to the backlash, CBA stated that it will ‘change its approach’.

The CBA's Retail Banking Services Group Executive Angus Sullivan admitted that the bank had ‘done a poor job’ of communicating the change to customers.

‘We are particularly conscious of the impact any change to planned fees and charges can have at this time of year, especially given the cost of living pressures our customers face,’ he said.

Mr Sullivan then went on to explain, ‘For our complete access customers—which is roughly 10 per cent of our 10 million odd customers—there are approximately 90 per cent of our complete access customers for whom the change that we announced yesterday would put them in a better or equal position to today.’

‘The changes taking place are such that the approximately 90 per cent of customers we intend to move, and who we expect will be better off or the same, will be moved to the lower monthly fee account.’

‘If those customers don't want to move, they can contact us to discuss their options. For the remaining customers, we are changing our approach, and we are pausing the migration,’ he added.

Mr Sullivan stated that the bank will reach out to customers over the next six months to discuss the best products for their needs.

‘The changes outlined above do not affect approximately 9 million CommBank customers who are not on the Complete Access product,’ he pointed out.

During a press conference, Treasurer Jim Chalmers mentioned that he met with the bank's Chief Executive, Matt Comyn, on Wednesday, December 4, to indicate that the changes were ‘unacceptable’.

‘The changes were not acceptable or appropriate, we made our views very clear,’ he remarked.

Treasurer Chalmers stated that he and Mr Comyn had a ‘constructive’ conversation aimed at ensuring vulnerable customers would not be adversely affected.

‘They will have another look at those changes to make sure that people are not worse off,’ he shared.

‘We are talking and lots of instances about some of the most vulnerable people in the banking system.’

‘I welcome the change of heart,’ Treasurer Chalmers added.

The recent backlash over the Commonwealth Bank's new cash withdrawal fee has highlighted growing concerns about how banks handle customer charges.

This issue brings to light broader questions about the fairness and transparency of banking practices.

In a related development, an Australian Securities and Investments Commission (ASIC) investigation has uncovered widespread overcharges by several banks, revealing a troubling pattern of financial misconduct that affects many Australians.

Key Takeaways

• Commonwealth Bank (CBA) faced backlash over the introduction of a $3 cash withdrawal fee for certain transactions.
• Following criticism and a conversation with the Treasurer, CBA announced it would ‘change its approach’ and ‘pause’ the planned changes.
• CBA's Retail Banking Services Group Executive Angus Sullivan admitted the bank did ‘a poor job’ of communicating the changes and is conscious of the impact on customers, especially with the current cost of living pressures.
• The bank will review the new fee structure and contact customers over the next six months to discuss the most suitable product for their needs, while the Treasurer welcomed CBA's re-evaluation to ensure vulnerable customers aren't adversely affected.

Members, have you been affected by bank fee changes in the past? How do you manage your banking to avoid unnecessary charges? Share your experiences and tips in the comments below. Let's help each other stay informed and protect our hard-earned savings from being eroded by fees.

 

[Mika in the van]

Bugger that for a joke - I would be walking really really fast and making a big hullabaloo in the local medial while I was at it - how dare they?

No need to be a smart arse. If you can‘t say something nice then say nothing at all.