Urgent 2025 ASIC Refund: 7 Banks Paying Low Income Fees

Urgent News for Australian Bank Customers

Attention Australian consumers, especially those with low incomes or small account balances. In 2025, a significant remediation program mandated by the Australian Securities and Investments Commission (ASIC) is taking full effect. Seven major Australian banks are being compelled to refund millions of dollars in unfairly charged fees. This isn't a scam or a giveaway; it's money you may be rightfully owed.

If you've ever been charged account-keeping fees on a low-balance account or suspect you were sold unnecessary add-on insurance, you need to read this guide. We'll break down exactly what this urgent 2025 ASIC refund is, which banks are involved, and most importantly, how you can check your eligibility and claim your money back.

What is the 2025 ASIC Remediation Program?

The Australian Securities and Investments Commission (ASIC) is the country's corporate, markets, and financial services regulator. One of its key roles is to protect consumers from misconduct by financial institutions. When ASIC finds that banks have engaged in widespread misconduct, such as charging fees for no service or selling inappropriate products, it can force them to undertake a 'remediation' program.

This 2025 initiative is the culmination of several years of investigations into two main areas:

• Unfair Account Fees: Many banks had policies to waive monthly or annual account-keeping fees for customers who maintained a certain minimum balance or deposited a certain amount each month. However, investigations found that these waivers were not always applied correctly, particularly affecting low-income individuals, students, and pensioners whose balances often fluctuated.
• Junk Add-On Insurance: This refers to consumer credit insurance (CCI) and other similar products sold alongside personal loans, car loans, and credit cards. ASIC found that these products were often sold to people who were ineligible to claim, didn't need the product, or were unaware they had even purchased it.

The result is a large-scale refund program where banks must proactively identify and repay affected customers, with interest. It's a critical step toward correcting past wrongs and ensuring a fairer banking system for everyone.

Are You Eligible for a Refund? Key Criteria

While each bank's program has specific details, you may be eligible for a refund if you meet the general criteria below. Check if any of these situations apply to you:

• You held a transaction or savings account with one of the listed banks, typically between 2010 and 2019.
• You were a low-income earner, a student, or a pensioner during this period.
• You were charged account-keeping fees despite being eligible for a waiver (e.g., your account balance temporarily dipped below the required threshold).
• You took out a personal loan, car loan, or credit card and were sold add-on insurance (CCI).
• You believe you were sold an insurance policy that was of little or no value to you.

If you tick one or more of these boxes, it is crucial that you investigate further. Many customers are being contacted directly, but due to changes in address or contact details, you may need to be proactive.

The 7 Banks Paying Low-Income Fee Refunds

While many institutions have had remediation programs, these seven banks are a key focus for the 2025 refunds related to unfair fees and junk insurance affecting everyday Australians.

Commonwealth Bank of Australia (CBA)

CBA's remediation program covers incorrectly charged account fees and the mis-selling of CCI. Many customers who were eligible for fee waivers on transaction accounts but were still charged are being identified and refunded.

Westpac Banking Corporation

Westpac, along with its subsidiaries like St. George, Bank of Melbourne, and BankSA, is refunding customers for a range of issues, including junk insurance sold through their car loan and credit card divisions. They are also addressing instances of incorrect fee charging on everyday bank accounts.

National Australia Bank (NAB)

NAB's program is extensive, focusing heavily on CCI refunds. They identified significant issues where customers were sold insurance policies they were unlikely to ever be able to claim on. They are also refunding account fees that were applied in error.

Australia and New Zealand Banking Group (ANZ)

ANZ has a large-scale remediation program underway for both junk CCI and what they termed 'lack of value' insurance products. They are also part of the fee-waiver remediation, repaying customers who should not have been charged monthly account fees.

Bendigo and Adelaide Bank

While a regional player, Bendigo Bank has also been identified for its role in selling CCI that offered little to no value to its customers. Their remediation program is focused on ensuring customers who purchased these policies alongside loans are compensated.

Suncorp Bank

Suncorp's focus has been on its insurance products, particularly add-on insurance sold with car loans. ASIC found that many customers were either unaware they had bought the insurance or it was not suitable for their needs. Suncorp is in the process of refunding these premiums plus interest.

Bank of Queensland (BOQ)

BOQ, along with its subsidiaries, is also participating in the remediation efforts. Their program is centered on refunding premiums for CCI and other personal insurance where the value proposition for the customer was questionable or non-existent.

Comparison of Bank Refund Programs

How to Claim Your ASIC Refund: A Step-by-Step Guide

Getting your money back is often easier than you think. Follow these steps to ensure you don't miss out.

Step 1: Check Your Mail and Email

The banks are required to make a genuine effort to contact affected customers. Scour your recent and old mail, as well as your email inbox (including the spam folder), for any official correspondence from your bank regarding a 'remediation payment' or 'refund'.

Step 2: Gather Your Documentation

If you believe you're eligible but haven't been contacted, it's time to be proactive. Gather any relevant documents you can find, such as old bank statements, loan agreements, or account summaries from the eligibility periods mentioned above.

Step 3: Contact Your Bank Directly

Use the bank's official contact number or visit their website to find information about their 'remediation program'. Do NOT use phone numbers from suspicious emails. When you call, state that you are inquiring about a potential refund for unfairly charged fees or mis-sold insurance as part of the ASIC-mandated remediation. They have dedicated teams to handle these inquiries.

Step 4: Escalate if Necessary

If you are not satisfied with your bank's response, you have the right to lodge a complaint with the Australian Financial Complaints Authority (AFCA). This is a free and independent dispute resolution service that can help resolve issues between consumers and financial firms.

Important: Beware of Refund Scams!

Whenever large sums of money are being returned to the public, scammers will try to take advantage. Remember these crucial points to stay safe:

• No Upfront Fees: A real bank or ASIC will NEVER ask you to pay a fee to receive your refund.
• No Password Requests: They will NEVER ask for your PIN, online banking passwords, or to transfer money from your account.
• Verify the Source: If you receive an email or text, do not click any links. Instead, go directly to the bank's official website or call their publicly listed phone number to verify the communication.
• ASIC Doesn't Pay: ASIC oversees the process, but the banks make the payments. Be wary of anyone claiming to be from ASIC and offering to process your payment for you.

Don't Miss Out on Your Money

The 2025 ASIC refund program is a vital measure to return hard-earned money to the pockets of Australian consumers who were wronged. For low-income individuals, in particular, these refunds can make a significant difference. Don't assume you aren't eligible. Take a few minutes to review your history with the seven banks listed, check your old correspondence, and if in doubt, make the call. It's your money, and it's time to claim it back.