CBA to refund unclaimed funds from expired Travel Money Cards
Commonwealth Bank of Australia (CBA) consumers who have not claimed funds left on expired Travel Money Cards within 12 months of the expiry will no longer forfeit the cash to the bank, following changes to the bank's policy.
The Australian Securities and Investments Commission (ASIC) revealed that the CBA had agreed to release $2.2 million for approximately 45,000 customers who had money left on expired Travel Money Cards issued by the bank, in the wake of concerns about the cards.
Prior to the CBA's changes funds left on CBA Travel Money Cards for 12 months after card expiry could be forfeited to the CBA.
In a statement released today, ASIC said it was reviewing 13 products from nine issuers as part of its broader work in this area.
"ASIC is looking at how consumer funds on expired multi or single currency travel cards are dealt with by card issuers. In many cases, other card issuers charge fees which can whittle away balances over time," the regulator said.
ASIC Deputy Chairman Peter Kell said, "Consumers should make sure they understand the fees and charges that apply to their reloadable cards. 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 or deficient disclosures. We will take action where appropriate."
Consumer who believe they may be entitled to funds on expired travel cards are being encouraged to contact the institution where those funds were last held. Consumers can search for unclaimed money amounts over $500 (money that has been with an institution for more than three years) on ASIC's MoneySmart website.
Consumers who think they may have left funds on a CBA Travel Money Card can contact the CBA for further information about reclaiming their funds.
AUTHOR
Nicholas O'Donoghue
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