The corporate watchdog has initiated civil penalty proceedings in the Federal Court against the nation’s largest bank, alleging that tens of thousands of business clients were subjected to undisclosed fees over several years according to ABC News & Headlines – Australian Broadcasting Corporation.
The Australian Securities and Investments Commission filed the lawsuit against the Commonwealth Bank of Australia, stating that approximately 42,000 users of the CommBiz platform were overcharged roughly $8.5 million between November 2020 and May 2025.
According to the regulatory body, the online banking platform’s terms and conditions failed to accurately disclose charges associated with direct debit and direct credit payments.
While account holders were informed of fees linked to third-party transactions, the watchdog states that an additional, unannounced fee of 25 cents plus GST was levied for internal money movements into or out of a client’s CommBiz account. For instance, a small business covering fortnightly wages for 10 employees across two accounts reportedly incurred 12 separate charges instead of 10.
“Small businesses are busy enough. They should not have to scrutinise every transaction to make sure that their bank is charging them the right fees,” ASIC commissioner Alan Kirkland said.
“We allege Commonwealth Bank broke a basic promise to its business customers, many of them small businesses, that the fees it told them they would pay were the fees they would actually be charged.” Alan Kirkland
said ASIC commissioner Alan Kirkland, as reported by The Canberra Times.
COMMONWEALTH BANK ACKNOWLEDGES THE ASIC PROCEEDINGS OVER COMMBIZ CUSTOMERS AND PLANS TO DEFEND PARTS OF THE CLAIM, SOURCES SAY, SAYING IT COMPLETED CUSTOMER REMEDIATION IN FY2026 AND SELF-IDENTIFIED AND REPORTED THE MATTER TO ASIC, COOPERATING FULLY WITH ITS INVESTIGATION
The dispute spans nearly two decades. The regulatory authority claims the problematic terms and conditions originated with the launch of CommBiz in 2006. The agency asserts that the institution received client complaints regarding the charges beginning in at least 2015, and that an internal audit in 2016 flagged direct debit overcharging while calling for corrective measures.
“What makes this particularly concerning is how long the alleged conduct went on, despite customer complaints to Commonwealth Bank pointing to a problem years earlier,” ASIC commissioner Alan Kirkland said. The Federal Court has not yet scheduled a case management hearing for the matter.
The financial institution temporarily suspended the relevant charges in June 2025 and subsequently updated its platform terms in August 2025, followed by waiving the contra leg fees for direct payments starting in February 2026.
Prior to the lawsuit, the bank completed a remediation program covering the period from December 2006 onward, distributing more than $26.4 million to approximately 93,000 customers, which included about 40,000 small businesses. Data shows that as of October 20, 2026, the median payout to affected accounts was approximately $85, while the mean payment reached approximately $442, including interest.
In a statement issued to the ASX, the bank maintained that it self-identified the issue, reported it to the regulator, and cooperated fully while implementing rectification steps to prevent similar incidents.
While expressing an apology to affected clients and acknowledging that it did not get things right, the institution stated it does not accept the formulation of certain allegations and expects to defend specific aspects of the claim or continue discussions to resolve the proceedings.
