Tags: Financial advice. Finance. Money. Councillor. Bribie Island
UNAUTHORISED AND MISTAKEN BANK TRANSACTIONS
Author: Peter Dallimore is a volunteer Financial Counsellor at the Bribie Island Neighbourhood Centre
The ever-increasing availability of electronic funds transfer devices make it easier to spend money and easier for fraudsters to access your accounts and make unauthorised transactions. It’s also easy to make a mistake when entering transaction details in a withdrawal or funds transfer form. Keeping a regular check on transactions is essential to alert you to a problem so you can act and keep in control.
The sooner you report a problem the more likely you are to get your money back. You should be able to get your money back if it is clear that you haven’t contributed to the loss and your payment service provider has signed on to the ePayments code which is a voluntary code of conduct regulating electronic transactions.
Transactions falling into the money back category include where a forged, expired, faulty or cancelled PIN/ password or card was used, the transaction was fraudulently made by an employee of your financial institution or merchant, a merchant incorrectly debited your account more than once or that someone else used your PIN or password without your consent. Before you report an unauthorised or mistaken transaction, check if your payment service provider has signed up to the ePayments Code via www.asic.gov.au.
If they subscribe to the Code, they must have processes in place to return your money, in the circumstances outlined above. If they are not a subscriber, you should still raise your concerns with them. Contact your payment provider as soon as you become aware of a problem. Explain the problem to them, note the day/time of your call, obtain a reference number for the call and confirm the details in writing. Where it appears that there has been fraudulent activity taking place you may need to put a “stop” on your account to prevent further transactions.
There is less chance of getting your money back from an unauthorised transaction if you acted fraudulently, didn’t keep your PIN or password secret, unreasonably delayed telling your financial institution that your card was lost or stolen or that someone else may know your PIN or password or you accidentally left your card in an ATM.
However, even in these circumstances, the amount you are liable for is subject to certain caps. Similar to an unauthorised transaction if you have made a mistaken payment the sooner you contact your payment provider the better. If you put in the wrong BSB or account number, or chose the wrong payee, you are likely to get your money back if you contact your account institution within 10 business days and the money is still in the recipient’s account.
Your account institution will need to be satisfied that the mistake is genuine. It will be a slower process if you report the problem after 10 business days, but you should still get your money back if the money is still in the recipient’s account. If it is more than 7 months, and the money is still in the recipient’s account, then the recipient has to consent to the return of your funds before you can get your money back. And so the world of electronic banking offers many benefits in terms of convenience but it requires constant vigilance to ensure that your money is not being misused or misdirected.
Check out moneysmart.gov.au for more information on how to stay in control.
Peter Dallimore can be contacted via email at [email protected] or you can make an appointment to see him by calling 3408 8440. The Financial Counselling service is free. Other free Neighbourhood Centre services include family counselling and courses for parenting, anger management, personal empowerment for women and depression and anxiety courses.
A small Emergency Relief Program, a Debt Relief Service and Neighbourhood Harvest (free food once a week) are also provided. In addition the Centre hosts outreach services including Centrelink, Job Search, hearing services and supports some great initiatives including Tax Help and Broadband for seniors. A small onsite Bargain Shop has super low prices. The Neighbourhood Centre is located at 9 Verdoni St Bellara.
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