'It's so frustrating': Bank freezes pensioner's bank account over 'ridiculous' mistake
- Replies 17
Navigating the complexities of modern banking can be a daunting task, especially for senior community members who are not as familiar with technology.
While convenient for many, online banking could sometimes lead to unforeseen complications and situations.
This was the case for one pensioner whose experience with a digital bank could be a cautionary tale for all of us.
Janet Benton, a 74-year-old pensioner, found herself in a dire situation after Ubank, a National Australian Bank (NAB subsidiary), froze her newly-opened high-interest savings account.
The freeze occurred a week after the Brisbane local transferred her remaining superannuation of $20,000 into the account.
According to the bank, the account got frozen due to 'some concerns about who was accessing Janet's accounts'.
The freeze left Ms Benton, who suffers from anxiety, out of pocket for her rent, medical bills, or even necessities like food.
Her daughter and carer, Catherine Cush, was suspected by the bank of potential fraud or elder abuse, which triggered the suspension.
'It's so frustrating, it's ridiculous,' Ms Cush said.
'I don't know how a bank could do this. I thought maybe they suspect elder abuse, but how are they protecting the elderly by denying them access to money? We had little to no food; we exhausted the charities.'
Despite completing identity checks twice, Ubank refused to unfreeze Ms Benton's account.
'We highlighted the need to access funds for essentials and urgent vet care required for her cat. We called Ubank every day only to be refused any transfers to the complaint team,' Ms Cush added.
Later on, Ms Benton turned to the Australian Financial Complaints Authority (AFCA) for help.
To compensate, Ubank offered $150 for a medical scan but still kept Ms Benton's account frozen.
Later on, Ubank gave a 'goodwill offer' of $250 as a 'full and final' response to the mum and daughter's AFCA complaint.
In a letter sent to Ms Benton and Ms Cush, Ubank acknowledged the mum's concern regarding her bank account.
'Though we stand by the actions taken by Ubank being necessary, we appreciate that in doing so, it has placed financial inconvenience on Ms Benton,' the letter read.
According to Ubank policies, the named account holder should be the only one who can access their banking services.
'This approach applies to all customers and does not accommodate for personal agreements between account holders and trusted family members, meaning that where Ubank suspects an individual other than the named account holder is accessing the banking, we must take action to protect the accounts and funds,' the bank explained further.
After weeks of frustration, Ms Benton requested to close her Ubank account and transfer the funds to an ANZ account.
While Ubank believed that their actions were appropriate, Ms Cush found the resolution 'disgusting'.
'There comes a time where this is almost a criminal matter,' Ms Cush lamented.
'If someone robbed my mum of $18,000 in her purse, they would be arrested. But because it's a bank, it's okay.'
While the funds were successfully transferred to her ANZ account, Ms Benton received an additional $500 from Ubank as a 'fair resolution'.
It's crucial to be aware of online banking apps' terms and conditions and to take proactive steps to ensure that your financial affairs are in order.
Janet Benton's ordeal was a reminder that while banks play a crucial role in keeping finances safe, they should also exercise their responsibilities with empathy and care.
Have you or someone you know faced similar banking issues? Share your stories with us in the comments below, and let's navigate the digital world safely together.
While convenient for many, online banking could sometimes lead to unforeseen complications and situations.
This was the case for one pensioner whose experience with a digital bank could be a cautionary tale for all of us.
Janet Benton, a 74-year-old pensioner, found herself in a dire situation after Ubank, a National Australian Bank (NAB subsidiary), froze her newly-opened high-interest savings account.
The freeze occurred a week after the Brisbane local transferred her remaining superannuation of $20,000 into the account.
According to the bank, the account got frozen due to 'some concerns about who was accessing Janet's accounts'.
The freeze left Ms Benton, who suffers from anxiety, out of pocket for her rent, medical bills, or even necessities like food.
New Ubank account customers were qualified for a high interest rate of 5.5% per annum for their savings accounts. Image Credit: Ubank
Her daughter and carer, Catherine Cush, was suspected by the bank of potential fraud or elder abuse, which triggered the suspension.
'It's so frustrating, it's ridiculous,' Ms Cush said.
'I don't know how a bank could do this. I thought maybe they suspect elder abuse, but how are they protecting the elderly by denying them access to money? We had little to no food; we exhausted the charities.'
Despite completing identity checks twice, Ubank refused to unfreeze Ms Benton's account.
'We highlighted the need to access funds for essentials and urgent vet care required for her cat. We called Ubank every day only to be refused any transfers to the complaint team,' Ms Cush added.
Later on, Ms Benton turned to the Australian Financial Complaints Authority (AFCA) for help.
To compensate, Ubank offered $150 for a medical scan but still kept Ms Benton's account frozen.
Later on, Ubank gave a 'goodwill offer' of $250 as a 'full and final' response to the mum and daughter's AFCA complaint.
In a letter sent to Ms Benton and Ms Cush, Ubank acknowledged the mum's concern regarding her bank account.
'Though we stand by the actions taken by Ubank being necessary, we appreciate that in doing so, it has placed financial inconvenience on Ms Benton,' the letter read.
According to Ubank policies, the named account holder should be the only one who can access their banking services.
'This approach applies to all customers and does not accommodate for personal agreements between account holders and trusted family members, meaning that where Ubank suspects an individual other than the named account holder is accessing the banking, we must take action to protect the accounts and funds,' the bank explained further.
After weeks of frustration, Ms Benton requested to close her Ubank account and transfer the funds to an ANZ account.
While Ubank believed that their actions were appropriate, Ms Cush found the resolution 'disgusting'.
'There comes a time where this is almost a criminal matter,' Ms Cush lamented.
'If someone robbed my mum of $18,000 in her purse, they would be arrested. But because it's a bank, it's okay.'
While the funds were successfully transferred to her ANZ account, Ms Benton received an additional $500 from Ubank as a 'fair resolution'.
It's crucial to be aware of online banking apps' terms and conditions and to take proactive steps to ensure that your financial affairs are in order.
Janet Benton's ordeal was a reminder that while banks play a crucial role in keeping finances safe, they should also exercise their responsibilities with empathy and care.
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