CBA to refund $7.6 million to customers

The Commonwealth Bank of Australia (CBA) will refund around 8,400 customers approximately $7.6 million after it failed to apply fee waivers and ongoing benefits to AgriAdvantage Plus package holders over a number of years.

The CBA reported this matter to regulator ASIC under its breach reporting obligations.

The AgriAdvantage Plus package, launched in 2005 but no longer available to new customers, applied to a range of products including lending facilities, business overdrafts, savings and transaction accounts.

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There were a range of interest rate and fee concessions on eligible products like discounted lending rates, preferential savings rates, and fee waivers.

CBA discovered the error and reported it to ASIC in 2014.

CBA advised ASIC 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.

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"Identifying and reporting breaches is a key obligation for financial services licensees. Where errors occur, it is important that they be rectified promptly and appropriately," ASIC deputy chairman Peter Kell said.

"That includes restoring consumers to the position they should have been had the breach not occurred."

CBA has commenced making contact with all affected customers.