Commonwealth Bank Awarded for Fee Practices
Commonwealth Bank received a “special award” at Choice’s 2025 Shonkey Awards, specifically for its poor treatment of low-income customers. According to a consumer advocate, Australia’s largest bank has imposed around $270 million in unjust fees on this demographic.
Ashley de Silva, the CEO of Choice, remarked that CBA was notably singled out this year, especially after ASIC took action against several major banks for charging excessive fees to low-income clients.
Many affected customers were actually eligible for low-cost accounts, which should have been granted automatically. While other significant banks offered refunds, “CBA initially refused” to do the same.
Currently, CBA has stated that it will handle refunds on a case-by-case basis, but Choice noted, “we do not know how many of those customers have received refunds or how much of that $270 million will be returned to them.”
A spokesperson for CBA shared that in July, the bank pledged to provide goodwill adjustments to customers who faced unusually high fees. They also mentioned that for eligible customers, certain fees like overdraft and monthly account fees have been waived. In light of ASIC’s Better Banking for Indigenous Consumers report, CBA reportedly issued about $25 million in goodwill to roughly 87,000 accounts.
This is actually the fourth time CBA has been criticized in Choice’s awards, which spotlight Australia’s least favorable products and services, making the bank the “most awarded” organization in the event’s two-decade history.
Safety Concerns with Temu Products
In a separate matter, in 2024, Choice evaluated 15 children’s products sold by Temu that used button batteries and found that all of them failed to meet Australian safety standards. While Temu has reportedly ceased selling these products, de Silva noted that incidents involving harmful items purchased through Temu have emerged before.
One significant example involved an eight-year-old girl in Queensland who suffered burns to 13% of her body when her Temu hoodie caught fire. The hoodie was later deemed noncompliant with essential safety standards and taken off the shelves, though de Silva highlighted it took four months for this to happen, which seemed excessive.
Additionally, de Silva pointed out Temu’s failure to adhere to Australia’s voluntary safety commitments, which online marketplaces like Amazon and eBay have trialed.
A representative for Temu countered, declaring that consumer safety is their priority and outlining their substantial investments into compliance measures, including rigorous seller vetting and continuous monitoring. The spokesperson mentioned that in light of the incident cited by Choice, all affected items were promptly removed, and monitoring in high-risk categories has been intensified.
HCF Policy Changes
HCF, the largest not-for-profit health fund in Australia, has received a Shonky award for allegedly “secretly” canceling policies and introducing more expensive alternatives with similar benefits. In late February, the organization stopped offering Premium Gold insurance to new members and replaced it with a “nearly identical” policy, Optimal Gold, which comes with a 34.6% price hike.
De Silva called this an industry-wide issue, noting that this instance was among the worst. Although insurers require government approval for premium increases, this move could bypass that necessity.
In response, an HCF spokesperson claimed that changes to their gold policy were aimed at ensuring accessibility and fairness. They asserted that these adjustments only affect new sales and comply with industry standards. Existing Premium Gold policyholders who joined before February 2025 were reportedly not impacted by the changes.
HCF committed to adjusting to any forthcoming regulatory changes and pointed out that challenges in sustaining Gold Hospital offerings stem from rising costs associated with intricate insurance claims, particularly within the mental health landscape.
Widespread Issues in Energy Retail
Choice criticized the entire energy retail sector for employing “sneaky pricing tactics” that confuse consumers. De Silva highlighted that this issue is prevalent, with 84% of Australian households expressing concerns about their energy expenses.
He emphasized that energy retailers have a responsibility to inform their customers proactively about potentially better plans, often noting them on the bills. However, the problem often arises when a more favorable deal carries the same name as the existing plan, making it difficult for consumers to spot the differences without further research.
Choice estimates that Australian energy customers could collectively save up to $65 million annually if retailers had clarified that newer plans, despite having the same name, offered reduced prices.
Since launching in 2006, the Shonkey Awards have shamed various entities, including supermarkets profiting amidst the cost-of-living crisis and airlines steering people away from eligible refunds.
De Silva concluded, “For over 20 years, we keep uncovering major wins for consumers through the Shonkys. There are always new examples each year.”
