CommBank releases $2.2 million to 45,000 travel money card customers, after concern from ASIC
Article by Rebeccah Elley
The Australian Securities and Investments Commission has raised concerns about funds from the Commonwealth Bank travel money cards being forfeited after 12 months.
As a result CommBank has released $2.2 million for around 45,000 customers who had money left on expired CBA travel money cards and has also said it will hold expired funds for 3 years. After this period, any unused money on the cards will then be treated as “unclaimed money” and customers will be able to retrieve the money at any time in the future.
ASIC is putting 13 products from nine issuers under the microscope, analysing how consumer funds on expired multi or single currency travel cards are dealt with by card issuers. Mozo advises Aussies to do their home work before signing up with a travel money card by taking the time to search for a competitive travel money deal and avoid hefty fees.
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,” Kell said.