For many Australias, loyalty is a value they hold dear, especially towards financial institutions.

Customers, regardless of age, expect the same in return—a relationship built on trust, transparency, and mutual respect.

That's why this customer's story struck a chord with many, especially those with long-standing businesses with their banks.


Brooke, a young mother on maternity leave, had been receiving regular paychecks from her partner, a United Kingdom native who had turned into an Australian citizen.

The couple had been diligently managing their finances with the bank.

However, they were left in a state of disbelief after receiving a phone call that would shake both of them.


They were informed that almost all of their family's accounts would be closed by 31 May, without any given explanation.

Brooke and her partner suddenly faced an unexpected and distressing situation.

They could not fathom why their accounts, shared accounts, and credit cards were being targeted for closure.

The only account left untouched was their car loan, which continued accruing interest.


Brooke's partner initially suspected it was a scam and contacted the bank for clarification.

'This was out of the blue,' Brooke shared.

'My partner called them thinking it was a scam, but they told him it was real, and they gave no reason why.'

The accounts were also blocked within days, which left Brooke and her partner unable to purchase anything.

Brooke's partner tried to appeal the bank's sudden blocking.

'He called them back and they released the block, but said they weren't obliged to tell us why the accounts were being closed,' they followed up.

The couple received a letter which listed their affected accounts.

However, Commonwealth Bank still did not explain their situation.


The lack of transparency left Brooke and her family scrambling to switch banks and reorganise all their direct debit payments.

The incident raised essential questions about customer rights and the banks' obligations towards their users.

According to the Banking Code Compliance Committee, Australian banks reserve the right to close a customer's account, as this is typically outlined in their terms and conditions.

Reasons for account closure could range from dormant accounts to legal concerns such as suspected fraudulent activity or money laundering.

The committee recommended that banks should provide a list of reasons and notify customers directly when closing accounts.

However, the above-mentioned is not a requirement.

Customers who believe that their accounts have been closed in error may consult the Australian Financial Complaints Authority (AFCA).


AFCA acknowledged that while it is helpful for a financial firm to explain an account closure, there can be valid reasons for withholding this information.

In such cases, AFCA may still find the financial firm's actions reasonable.

In response to the incident, a Commonwealth Bank spokesperson stated that decisions to close accounts are made on a case-by-case basis.

'We consider a number of factors before taking the careful decision to close a customer's account, and we ensure we inform the customer of that closure decision,' a Commonwealth Bank spokesperson said in a statement.

'While we appreciate some customers want more information in relation to account closure decisions, there are limitations on what can be shared, which include our regulatory and legal obligations.'

Brooke's story should serve as a reminder that even loyalty could be overshadowed by financial institutions' opaque policies.

It underscored the importance of understanding a bank's terms and conditions and knowing everyone's rights as consumers.

It's a good idea to keep a close eye on bank accounts and to maintain open communication with banks to avoid any unwelcome surprises.
Have you ever experienced a sudden account closure from a banking institution? How did you feel about it? Share your experiences and thoughts about Brooke's situation with us in the comments section below.