In a revelation that has shocked the banking community, ANZ, one of Australia's Big Four banks, has been caught in a serious breach of trust and ethics.

The bank has been sanctioned for charging fees to the estates of deceased clients, a practice that is as insensitive as it is alarming.

This distressing news serves as a stark reminder of the importance of vigilance in managing the financial affairs of our loved ones, even after they have passed away.

The Banking Code Compliance Committee (BCCC), an independent body overseeing banks' adherence to the Banking Code of Practice, has publicly named and shamed ANZ for this violation.

The bank was found to have failed to cease charging fees or to refund those already charged to customers' estates post-mortem.

The BCCC named and shamed ANZ for charging dead clients. Credit: Shutterstock

Furthermore, ANZ’s failed response to requests for information from representatives of the deceased, which should be addressed within 14 days as per regulatory requirements, added to the gravity of the situation.

ANZ first identified the issue in 2022, yet it took the bank over a year to implement solutions and another year to kickstart its ongoing customer remediation program.

Ian Govey, the chair of the BCCC, expressed deep concern over the deficiencies in ANZ's compliance frameworks.

‘The significance of the deficiencies in ANZ’s compliance frameworks was deeply concerning,’ Govey said.

‘Its non-compliance warranted such a sanction.’

In response to the backlash, ANZ's Service Operations Manager, Dan O’Neil, acknowledged that the bank had failed to provide the compassionate and timely support that customers and their families ‘rightly’ expect.

‘We know we have not always met the expectations of our customers and their families at a difficult time in their lives,’ he said in a statement on Tuesday, 2 July.


‘For this, we are sorry and we are committed to continuing to make changes to better support our customers.’

While ANZ has since reimbursed many affected estates, the BCCC criticised the bank for not acting swiftly enough.

It's worth noting that another unnamed bank was also found to have charged fees to deceased estates but was spared public censure due to its reasonable timeframe in resolving the issue.

The committee is currently investigating a third bank for similar misconduct.

Key Takeaways

• ANZ has been sanctioned for charging fees to the estates of deceased clients, which is a serious breach of banking regulations.
• The Banking Code Compliance Committee investigated the issue and has publicly named ANZ for not acting swiftly to stop charging fees or refund those charges after the death of clients.
• ANZ acknowledged the problem, apologised for not meeting expectations, and is committed to making changes to better support customers and their families.
• Another bank was found to have charged fees to deceased estates but was not publicly named after resolving the issue quickly, and a third bank is currently under investigation.

Have you or someone you know experienced similar issues with a bank regarding handling a deceased loved one's estate? Share your experiences and any advice you might have in the comments below.

 

[Kman]

BCCC fine ANZ for that and make it extremely hefty, and have them pay it to the families of the deceased they were doing it too.

 

[Rosmal]

Just another greedy big bank robbing the dead

 

[DLHM]

It took over 10 years for me to have BoQ to stop sending quarterly bank statements to my diseased husband (28 cents credit). I lost count of how many times I’d sent copies of his death certificate before they finally got the message. But I had no correspondence from them to acknowledge their mistake.

 

[Annna]

ANZ customers let ANZ know of its inappropriate conduct.

Check out other banks and choose one that provides answers acceptable to you, then leave ANZ.

I did, no more standing in lines for 30+ minutes and being coerced into using a 'handy' ATM instead of using a teller (and thereby enabling ANZ to orchestrate the reduction of customers using branches statistics).

 

[Clancieblue]

It took over 10 years for me to have BoQ to stop sending quarterly bank statements to my diseased husband (28 cents credit). I lost count of how many times I’d sent copies of his death certificate before they finally got the message. But I had no correspondence from them to acknowledge their mistake.

Wow, I have 8yrs to go, they just don't get that it hurts every time you get a letter addressed to a deceased person.

 

[Rob44]

The ANZ. I have yet to receive paper statements for the last few months despite several times reminding the useless mongrels that that is what I want. The local branch in a busy shopping centre has had its staff cut considerably. And of course, as with all of Australia's lousy banking industry they are stopping issuing cheque books. All because service costs them money. despite their billion dollar quarterly profits. The only service provided by Australia's banks is doing unto their customers what a male donkey does unto a female donkey.

 

[Towing]

Banks are not permitted to make any release of funds until Govt. Probate is granted. That can take several weeks. In SA the department that accepts Probate applications is only open for a short time each day. Some days there is literally a queue and they still close at a certain time regardless. If you put anything wrong on it, they don't tell you what the error is they simply reject it. It is worth the expense of getting a professional to do that even if you are the executor and do all the other requirements............I heard about a lady whose husband passed away. His very expensive almost brand new large work vehicle could not be sold until probate was granted - in that particular case close to 3 months. A self employed person with a wife and young children.

 

[Ebby]

Thats an eyeopener! l have been with ANZ for years and have had no trouble with them. They even said they would pay for my husbands funeral when he passed two years ago

 

[Viellarde]

Thats an eyeopener! l have been with ANZ for years and have had no trouble with them. They even said they would pay for my husbands funeral when he passed two years ago

HIS bank account paid for his funeral. Banks release funds to the relevant party to cover funeral expenses. Of course one needs to present quote etc.

 

[Ebby]

HIS bank account paid for his funeral. Banks release funds to the relevant party to cover funeral expenses. Of course one needs to present quote etc.

OK but they didn't pay for it as it had already been paid

 

[MariaG]

It's like vultures circling.
I have no words.

 

[Jenny Spellacy]

Do any intelligent Australian trust any bank? I'm a member of a credit Union and, sadly, they are heading the same way.

 

[Greentrees]

Do any intelligent Australian trust any bank? I'm a member of a credit Union and, sadly, they are heading the same way.

Not just the banks. My mother was called for jury duty two years after her death!