Commonwealth Bank and Westpac retain $15 legacy overlimit fees for customers opened before mid-2012
Australia's major banks are charging long-term customers $15 overlimit fees despite federal law banning such charges for accounts established after June 2012. Both institutions confirm the fees apply by default to pre-existing account holders unless opted out.
Commonwealth Bank and Westpac remain using a legal loophole to charge overlimit fees to customers with credit card accounts opened before mid-2012. The Gillard government reforms prohibited banks from charging these fees for any new account opened after June 2012, yet the major lenders have not removed them from existing portfolios. A Commonwealth Bank spokesman confirmed a legacy fee of $15 applies by default if an older account holder exceeds their agreed limit. He added that customers can opt out of the feature at any time. A Westpac spokeswoman confirmed they continue charging overlimit fees to accounts established prior to June 2012. Both banks announced recent overhauls to their credit card programs ahead of looming Reserve Bank changes, including a ban on card surcharges and caps on interchange fees. The Reserve Bank plan also includes regulations that would limit the interchange fees that fund reward perks, but current institutions maintain the legacy charges on long-term clients unless they actively remove the option.
