08/10/2014 - 09:43

CBA to return $2.2m to travel card customers

08/10/2014 - 09:43

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The Commonwealth Bank of Australia has agreed to release $2.2 million into the hands of about 45,000 of its customers who had money left on expired CBA travel money cards.

CBA to return $2.2m to travel card customers

The Commonwealth Bank of Australia has agreed to release $2.2 million into the hands of about 45,000 of its customers who had money left on expired CBA travel money cards.

Following concerns expressed by the Australian Securities and Investments Commission, the CBA made changes to its travel cards to prevent consumers from forfeiting any funds left on expired cards.

“Instead, any funds will be held by the CBA for three years and, if they remain unclaimed by consumers, will be treated as unclaimed money,” ASIC said in a statement.

Prior to the amendments, funds left on travel money cards for 12 months after their expiry would be forfeited to the CBA.

ASIC said it was looking at how consumer funds on expired multi or single currency travel cards are dealt with by card issuers.

It is reviewing 13 products from nine issuers.

“Consumers should make sure they understand the fees and charges that apply to their reloadable cards,” ASIC deputy chairman Peter Kell said.

“Withdrawing funds as soon as the card is no longer needed is one way to avoid paying these fees.

“ASIC is reviewing the operation of other travel cards in the market, with a particular focus on identifying any unfair contract terms of deficient disclosures.” 

 

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