Australia's corporate regulator ASIC is suing Commonwealth Bank (CBA), alleging that about 42,000 CommBiz business customers were overcharged about A$8.5 million in fees they were never told about between November 2020 and May 2025. ASIC says the bank charged an extra, undisclosed fee each time money moved into or out of a customer's own account to fund a direct debit or direct credit. CBA says it found the problem itself, has already paid more than A$26.4 million back to about 93,000 customers, and will defend parts of the case in the Federal Court.[1][2][3]
 | |
| Bank | Commonwealth Bank of Australia (CBA) |
|---|---|
| Regulator | Australian Securities and Investments Commission (ASIC) |
| Court | Federal Court of Australia |
| Product | CommBiz, CBA's online banking platform for businesses |
| Fees in question | Undisclosed "contra leg" fees on direct debits and direct credits |
| Fee amount | 25 cents plus GST each (CBA) |
| Alleged overcharging | About A$8.5 million, about 42,000 customers, Nov 2020 to May 2025 |
| Alleged duration | About 19 years, since CommBiz launched in 2006 |
| Already repaid | More than A$26.4 million to about 93,000 customers |
| ASIC is seeking | Declarations, penalties, adverse publicity orders, costs |
| Announced | November 12, 2026 (AEDT) |
What ASIC says CBA did
CommBiz is the online banking platform Commonwealth Bank offers its business customers. Businesses use it for things like paying wages by direct credit or collecting money from their own customers by direct debit.[1]
According to ASIC, the CommBiz terms and conditions told customers they would pay a fee for each payment to or from a third party's account. What the terms did not clearly say, the regulator alleges, is that CBA also charged a second fee for the matching movement of money into or out of the customer's own CommBiz account. ASIC calls these "contra leg" fees.[1][2][4]
ASIC gave a simple example. A small business paying the fortnightly wages of 10 employees from two CommBiz accounts was charged 12 fees: 10 for the payments to staff, plus two undisclosed fees for the money taken out of its own two accounts.[1][4]
Each extra fee was tiny. CBA told the ASX the fee at the centre of the case was 25 cents plus GST.[3][4] The problem, as ASIC tells it, was scale and time. For the period it is suing over, November 2020 to May 31, 2025, the regulator alleges about 42,000 CommBiz customers were overcharged about A$8.5 million in total.[1][2][3]
How long it went on: 19 years and an internal audit
The legal case covers less than five years, but ASIC alleges the misleading terms had been in place since CommBiz launched in 2006, which means business customers were overcharged for around 19 years.[1][2]
The regulator also alleges CBA received customer complaints about the fees from at least 2015, and that a 2016 internal audit identified overcharging of direct debit fees and required corrective action. ASIC says governance failings meant the misleading statements were still not found and fixed, and that the bank failed to act "efficiently, honestly and fairly", which is a core obligation for licensed financial firms in Australia.[1][2][4]
"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.[1][2][4] He also said: "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."[1][3]
What CBA says
CBA responded in a statement to the ASX on Thursday morning. It said it charged the fee consistently over time and that the issue came from changes to its terms and conditions that were "intended to simplify them" but "did not accurately reflect the fee charging method".[2][4]
The bank said it "self-identified this matter, reported it to ASIC, and has cooperated fully with ASIC throughout its investigation". It apologised to affected customers but said it "does not accept the way that some allegations have been formulated" and expects to "defend certain aspects of the claim, or otherwise continue to engage with ASIC to efficiently resolve the proceedings".[2][3][4]
That last line matters. It leaves room for a settlement, as happened with Macquarie earlier this week, but for now CBA is not admitting the case as ASIC has framed it.
Refunds: who has already been paid back
This is the part most business owners will care about, and the money has largely already moved. ASIC says CBA has completed a remediation program covering December 1, 2006 to the present, for both past and current CommBiz customers. It has paid more than A$26.4 million to about 93,000 CommBiz customers, including around 40,000 small businesses.[1][2][3]
CBA says that, up to October 20, the median payment was about A$85 and the mean (average) payment was about A$442, including interest.[2][3][4] The gap between those two numbers tells you most businesses got a small amount, while a smaller group of heavy direct debit users got much larger payments.
Why is the refund (A$26.4 million) so much bigger than the alleged overcharging (A$8.5 million)? Because they cover different periods. The A$8.5 million is only the November 2020 to May 2025 window that ASIC has taken to court. The remediation goes all the way back to 2006 and includes interest.[1][3]
CBA temporarily stopped charging the fees in June 2025, changed the CommBiz terms in August 2025, and has waived the contra leg fees since February 2026.[1][2][3]
What CommBiz customers should do
ASIC's advice is short: if you believe you were affected and have not been remediated, contact CBA.[1] You do not need to be part of ASIC's lawsuit to get money back. Refunds come through the bank's own remediation program, not through the court case.
In practice, check for a remediation payment or letter from CBA about CommBiz fees, and look at old statements for direct debit and direct credit batches where you were charged more fees than payments. If CBA's answer does not satisfy you, the Australian Financial Complaints Authority (AFCA) handles disputes with banks for free.
What happens next in court
ASIC is asking the Federal Court for declarations that CBA broke the law, pecuniary (money) penalties, adverse publicity orders, other orders and costs. The court has not yet listed the case for a first case management hearing.[1][2]
No penalty figure has been proposed. That is different from ASIC's case against Macquarie Bank, announced earlier this week, where the bank admitted the conduct and both sides proposed a A$14 million penalty over its savings account "Welcome Rate". Our explainer on that case is here: Macquarie Bank's A$14 million Welcome Rate penalty.[2] The ABC notes this is the second action ASIC has taken against a big bank in as many days.[2]
ASIC says the case fits its standing enforcement priority on systemic failures by large financial institutions and its 2026 priority on misleading pricing, especially during the cost-of-living squeeze.[1]
| Date | Event |
|---|---|
| 2006 | CommBiz launches; ASIC alleges the misleading terms date from here[1] |
| From 2015 | Customer complaints about the fees, ASIC alleges[1] |
| 2016 | Internal audit identifies direct debit overcharging, ASIC alleges[1][2] |
| June 2025 | CBA temporarily stops charging the fees[1] |
| August 2025 | CommBiz terms amended[1] |
| February 2026 | Contra leg fees waived[1] |
| November 11, 2026 | ASIC files in the Federal Court (late afternoon)[2] |
| November 12, 2026 | ASIC announces the case; CBA statement to the ASX[1][3][4] |
Frequently asked questions
Why is ASIC suing Commonwealth Bank?
ASIC alleges CBA's CommBiz terms were misleading because they did not disclose an extra fee charged on the customer's own account for each direct debit and direct credit. It says about 42,000 business customers were overcharged about A$8.5 million between November 2020 and May 2025.[1][2]
How much was the CommBiz fee?
CBA says the fee at the centre of the case was 25 cents plus GST.[3][4]
Will I get a refund from CBA?
CBA has already paid more than A$26.4 million to about 93,000 CommBiz customers. If you think you were affected and were not paid, ASIC says to contact CBA.[1][3]
Does this affect personal CommBank accounts?
No. The case is about CommBiz, CBA's platform for business customers.[1]
Has Commonwealth Bank been fined?
Not yet. ASIC has started civil penalty proceedings, but no penalty has been proposed or ordered, and CBA says it will defend some of the allegations.[1][2]
References
- "26-279MR ASIC sues Commonwealth Bank alleging tens of thousands of business customers overcharged fees". Australian Securities and Investments Commission. November 12, 2026.
- "ASIC accuses Commonwealth Bank of overcharging tens of thousands of business customers". Nassim Khadem, ABC News. November 12, 2026.
- "ASIC sues CBA, alleging the bank overcharged businesses $8.5 million". David Adams, SmartCompany. November 12, 2026.
- "CBA sued for overcharging tens of thousands of businesses". Elias Visontay, The Sydney Morning Herald. November 12, 2026.