Overdaft - A fraud?


#1

Hi
I have no overdrafts setup. I have money 3 different products in my personal banking - eftpos, savings n Tot money. My direct debit takes place frm say eftpos.

The bank gives me an auto over draft without asking me and also charges me a $10 fee, even though my money is in the connected accounts.

My account number is same and and product numbers are different. I donot have an over draft set up. Still they everytimr take $10 as fee off me everymonth.

Just watching CSI cyber and it clearly showcases how this is a fraudulent activity. Have you faced the same and should i complaint to RBNZ and Commerce comission?


#2

Umm… Watching CSI Cyber? Because everything in that show is 100% fact.


#3

No, but definately concurred what i was going to do. Why would you want to be charged for your own money sitting in the same account even when you have not authorised overdraft.


#4

Depends on what the banks terms and conditions are that you agreed to when you opened the accounts.

I had that happen with ASB bank they would just let the account go into overdraft and I just paid the $10 fee.
I decided to ask the bank for an actual overdraft facility for $100 because the account would only go into overdraft some of the time. The bank agreed, but what a huge shock to now find evidence of the overdraft on my Veda credit report. I cancelled the overdraft and now I back to what it was before and my credit report is no longer updated.
Certainly read your contracts and if they are not acting in accordance with it, the process is to make a complaint to the bank and if they won’t resolve it, then take it to the Banking Obudsman.
I’m taking another case to the Reserve Bank because money that I paid to a bank disappeared. I’m going to ask them to conduct an audit of a credit card account.
Have a look at the commerce commission website and see what they cover.
Organisations get very nasty if the complaints you bring against them have no legal basis or they find you signed a contract or agreement allowing them to take the money. Make sure you provide evidence and reference the correct rules of law that apply to your situation.
The reason we have corporate crime is it costs 1000s to make claims against an organisation. Last year I lost $13000.00 in income just trying to resolve the banks claims against me.
And they are in the wrong.


#5

Yes these terms need to change inaccordance to standarised terms around the world. All banks must not use age old rules just because none has challenged their terms in NZ and reserve bank has not yet cracked down.


#6

There is substantial corporate crime in NZ sadly. Thats due in part to how the banking and financial sectors operate in this country.
Too many people are being screwed, literally.
I have communicated with members of parliament and ministers about the lack of regulation in the debt collection and credit reporting industrys of which there is substantial fraud.
They are aware of what is going on and are turning a blind eye to it.

You are correct in that they have not been challenged.
Someone challenged the financial systems back in 2008 and the financial systems across the world collapsed.
Look what happened when the Brits challenged the EU, Moodys and the other International credit ratings gave the country a negative economic outlook so people would stop investing with them.

The problem you are talking about is just a tiny piece of a huge international problem. That’s been going on for years.
But keep speaking out because if enough of us do so, eventually things will change.
Good Luck


#7

Hmm
Tiny is easier to begin and resolve, hopefully banks take it as a positive customer service to earn trust and attract more new customers.


#8

I believe it will only go into overdraft if a direct debit leaves the account and there aren’t funds available. (I was advised this was the case for auto payments too but changes are being made here) but each account number is individual so it doesn’t matter if you have $20,000 in a savings account and $20 in a cheque (examples).
The fact is if more than $20 has been requested to leave your cheque account and you don’t have the funds in that specific account then it will overdraw and you will be charged fees. It’s perfectly legal as your not ensuring you have the funds in the right places


#9

qYea thats the bloody catch. They are charging us for our money sitting in the bank.

  1. I do not have an over draft sanctioned.
  2. Bounce my payment, if i do not have money
  3. If they want to automate, automate from my other account the payment.

Reserve banks in most countries do not allow what they are doing in Aus and NZ.


#10

So my understanding is you have a payment from one account going to someone and your saying that if the funds aren’t available in the account then they should bounce it and/or take from another account?

If you have set up for a payment to leave a specific account, it will leave the account. If you want it leaving another account, change it to leave a different account.

The fact you don’t have a arranged overdraft set up is irrelevant. Leave enough money in your account for the outgoings to not put you in a negative balance and you won’t be charged fees.

It’s not that hard to understand surely

Again the new automatic payment rules will stop this (if you don’t have the money it simply won’t be sent) If it is a direct debit this will leave anyway and may or may not bounce and if it’s overdrawn by a bit fees will be charged but that’s how banking works. Maybe rearrange the accounts your payments come into or leave from to avoid fees


#11

Just keep your money at home & pay by cash seems to be the ultra easy way according to your management statement.

If i do not have any money in any account. Should they give me an unarranged overdraft and later take me to file a bad credit report? or just bounce the payment?


#12

Uou mean to say thats
how NZ banking works @greenschemes
not in every country. I have used way better high tech systems in so called underdeveloped countries than in NZ and Aus.


#13

But you are in nz remember and as I stated this how banking works in New Zealand


#14

Yea in NZ. I need to make NZ better as its citizen. Its the voice of people which makes a difference. Need you to raise your voice as well. Bank ms are of the people, for the people and will abide by the people.
Thanks


#15

My 15 year old noticed a charge on her account which took her overdrawn. A visa debit transaction had not cleared and caused her to go overdrawn.
I advised her to call the bank and discuss with them. I also asked her to have the CSR remove the shadow limit which will prevent this from happening again.
The great person who she spoke with also refunded the previous 3 charges via her visa debit which had also caused the same issue.
For any account, the shadow limit should go by default unless specified.


#16

What if your daughter did not have the moeny to repay this charge, and the value of item you bought depreciates as soon as it leaves shop.


#17

The good person helped her as they didnot want to lose a potential customer. What does it even mean

'Unarranged over draft’
to a person whom you cannot even give an over draft
for e.g. an international student

If we need it we will arrange it with u. We purporse do not need it ! Then what?? I will form and tell u
oh u no I didnot subscribe for that thing which u call a feature
and I affirm that I do not need that feature !
N fill a form for that… [quote=“munderwood, post:15, topic:5122, full:true”]
My 15 year old noticed a charge on her account which took her overdrawn. A visa debit transaction had not cleared and caused her to go overdrawn.
I advised her to call the bank and discuss with them. I also asked her to have the CSR remove the shadow limit which will prevent this from happening again.
The great person who she spoke with also refunded the previous 3 charges via her visa debit which had also caused the same issue.
For any account, the shadow limit should go by default unless specified.
[/quote]