Ross Greenwood: Like pennies from heaven, the Commonwealth Bank today said it will give dead customers their money back…not that they’ll appreciate it.
Gerard Brody, CEO Consumer action Law Centre: The Banks reputation is out of this world.
Greenwood: It follows revelations in the Royal Commission, that Commonwealth advisers continued to charge fees…long after they knew the clients had died.
Michael Hodge QC, Counsel Assisting Royal Commission: One client dies in 2007, contact made with deceased wife in 2013 but no action taken.
Greenwood: Now the Commonwealth and other banks are overhauling their advice businesses.
The ANZ yesterday said it will repay an extra $374 million to refund customers who pid fees but no advice.
Today, the Commonwealth said it will give back $20 million a year to 50,000 customers in fees paid to financial advisers that shouldn’t have been – so-called “grandfathered commissions”.
Daniel Brammall, President Independent Financial Advisers Association: I think everyone has now been taken back by just how far the rabbit hole goes.
Greenwood: The Commonwealth admits its so-far handed back $270 million to customers who were provided poor quality advice or who were charged fees but given no service.
Brody: Its welcome news for long-suffering customers who have been gouged and ripped off.
Greenwood: Today the Commonwealth’s wealth managment chief operating officer said “charging unauthorised fees to deceased estates is unacceptable.” And for that he, and the bank, receive a gold medal is stating the bleeding obvious.
Not that the dead customers will get any satisfaction.
Ross Greenwood, Nine New.
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