A Current Affair host Allison Langdon has attacked the Commonwealth Bank for not fully eliminating its controversial $3 withdrawal fee, which already applies to potentially millions of customers.
The bank announced it would temporarily halt the fee after copping severe criticism from customers and political leaders, however Langdon pointed out that was not the same as scrapping it.
The Commonwealth Bank had initially planned to move customers from their Complete Access Account to a Smart Access Account which included a $3 fee when withdrawing cash from a branch, post office or their phone from January 6.
After intense blowback, the bank said the change would be delayed by six months for customers who are ‘worse off with the new fee’.
‘Kudos to CommBank for listening, however it’s not scrapping the fee altogether, it’s just pausing the charges until it figures out another solution,’ Langdon said.
According to the bank’s terms and conditions, the $3 fee already applies to those on the Smart Access account, just not those about to be transferred from the old account, and that won’t change.
Daily Mail Australia estimates millions of Australians have a ‘Smart Access’ account.
Ally Langdon (pictured) said the ‘damage’ from Commonwealth Bank’s now-cancelled cash withdrawal fee was already done and ‘they have no-one to blame but themselves’
‘How can a bank that raked in $9.8billion last financial year justify charging customers to access their own money? It can’t,’ Langdon told her viewers.
‘Once upon a time loyalty was rewarded, not anymore.
‘The damage from this just adds to the overall mistrust of banks and they have no-one to blame but themselves.’
Langdon grilled CommBank group executive of retail banking services Angus Sullivan about the withdrawal fee on Tuesday night.
‘It doesn’t sit well with families who are struggling as our banks make billions,’ she said.
‘What a way to say Merry Christmas and thank you for your loyalty.’
But Mr Sullivan hit back arguing the new fee was a ‘very modest cost’.
‘The reality is that handling cash is expensive,’ he said, despite the estimated $350 million cost being a small fraction of the bank’s revenue and massive profits.
He also insisted that the change was only ‘relevant to about 10 per cent of CBA’s customer base’.
‘And for our Complete Access customers, approximately 90 per cent of them will be either better off, or have a neutral outcome.’
Langdon lashed out at the executive in response.
In defence of the new fee, Angus Sullivan (right) told Ally Langdon (left) that handling cash was ‘expensive’
‘I don’t know if the majority of Australians feel the same way that their bank is supporting them,’ she said.
‘You know what would be welcomed? An interest rate cut. That would get you off the naughty list.’
Mr Sullivan laughed off that suggestion.
‘That’s not in my purview to make happen,’ he said.
‘But I appreciate customers are doing it tough at the moment. I certainly hope that we can explain these changes in a way that makes our customers feel that we have put them in our mind.’
Viewers were outraged to see Mr Sullivan argue the fee was necessary for Commonwealth Bank’s operations.
‘What a pathetic response… just be upfront and honest. It’s about profits,’ one said.
‘I will be closing my 35 year account with you tomorrow and withdrawing the $365,000 in cash,’ another wrote.
The Albanese government had also weighed in on the matter slamming the decision by the bank to introduce the fee.
‘It doesn’t seem fair or appropriate and this is a huge bank making huge profits. Come on, guys,’ housing minister Clare O’Neil told Sunrise.
‘It’s Christmas. We don’t need this right now. This is not something the bank should be doing and we’re asking them to reconsider.’
Mr Sullivan in a statement on Wednesday the change had been ‘poorly communicated’ with the bank’s customers.
‘The changes taking place are such that the approximately 90 percent of customers we intend to move, and who we expect will be better off or the same, will be moved to the lower monthly fee account,’ he said.
‘If those customers don’t want to move, they can contact us to discuss their options. For the remaining customers we are changing our approach and we are pausing the migration. Instead, we will contact these customers over the next six months to communicate about suitable product options.
‘The changes outlined above do not affect approximately nine-million CommBank customers who are not on the Complete Access product.
‘Commonwealth Bank maintains the largest branch network. Each of our branches has fee free ATMs and we have a moratorium on regional branch closures until at least the end of 2026.’
