Credit union to reimburse $ 4,000 after caregiver steals money


A credit union was ordered to reimburse a disabled woman for $ 4,000 after her caregiver stole $ 10,000 from her bank account.

A charity that helped the woman with her finances complained to FSCL on her behalf.

FSCL is a dispute resolution service that helps clients who cannot resolve their complaints with a financial service provider. It does not identify the complainants, or the organizations they are complaining about, but indicates that the woman did her banking with a credit union.

Her account had a “two sign” process in which a senior charity employee signed a withdrawal slip and the woman countersigned it at the credit union to get her money.

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But her caregiver, who accompanied her to the branch to withdraw her money, changed the withdrawal slips and used fraudulent transfer slips to transfer her money to a separate account, from which she could withdraw money. money from an ATM using the woman’s eftpos card.

It was when a teller noticed that the withdrawal slip had been tampered with that the credit union let senior management at the charity know that something was wrong.

After the breach was discovered and the case was referred to the police, the charity filed a complaint with FSCL, saying the credit union should have done more to prevent fraudulent withdrawals.

The charity said it was clear that the slips had been changed and that there should have been a withdrawal limit of $ 100 on his account and that transfers to the ATM account should not have been allowed at all.

The credit union argued that it was not responsible because it was enough to have the woman sign the slip in front of a cashier.

FSCL said it should have been obvious more money was being withdrawn from ATMs.


FSCL said it should have been obvious more money was being withdrawn from ATMs.

He said the woman’s charity or family should have noticed the withdrawals.

He said FSCL should not investigate because the caregiver may be asked to reimburse the woman as part of the police investigation.

But FSCL chief executive Susan Taylor said her organization looked into the matter and found that while the charity did not explicitly ask for a limit on what can be withdrawn, the credit union relaxed the “two to sign” measure by allowing withdrawal. slip to be signed by a single signatory off-site. It helped that fraud could take place.

FSCL also felt that the cashier staff should have noticed the withdrawal slips which had been obviously tampered with and that the number of ATM withdrawals was much higher than normal.

FSCL asked the credit union to repay 40 percent of the amount stolen. He accepted.

Taylor said it was a reminder that financial services companies should be very careful with vulnerable customers.

“FSCL focuses on supporting vulnerable consumers and for this reason we have updated our Vulnerable Consumer Policy. This includes mechanisms to prioritize complaints that present vulnerabilities. Our translation service is available to help those for whom language may be a barrier and we make sure we connect with community organizations, so people are aware of our services, ”Taylor said.

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