Bank at fault for payments to fraudster…

The Banking Ombudsman has found a bank partly responsible when its client made international payments to a fraudster. 

The customer had organised a payment overseas, but then changed her mind and her file was noted for possible fraud issues and that the customer may have been subjected to a scam.

The customer then used money which she borrowed from the bank to purchase a car to send overseas to the fraudster. 

The Ombudsman found that the bank should have challenged the payment overseas with the car loan money and should have raised the issue with the customer because of the flag on her file about the likely scam.

The Ombudsman recommended that the bank pay half of the losses plus $5,000 compensation for the stress and inconvenience suffered by the customer.  The customer accepted that in satisfaction of her claim.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.