NAB's Underhanded Tactics In Making Millions
The National Australia Bank has recently mailed to its account holders a notification about changes to their banking products. This has included amendments to a broad range of fees, which are clearly designed to rake in more profits for the bank.
NAB has now made changes to the way their National Flexi-Direct Account operates, and this type of account will now attract a flat $3.00 per month account keeping fee. This change makes clear liars of this banking organisation, after it sold this type of account as not having any account keeping fee.
A few years ago, during the era of Frank Cicutto, I worked in the area of customer service for the NAB from a call centre in Epping. At that time, we were forced to do sales work for the bank, against our terms of employment. Customer Service Officers were also trained to advise customers to switch their accounts from a National 'Flexi' Account to the new National 'Flexi-Direct' Account, because it would not attract an account keeping fee. We advised account holders of the benefits of the monthly 'rebate' feature, and how to do 'smart' banking. So the NAB made liars of its staff too!
I believe it is time to divulge a highly kept secret. For many years, the National Australia Bank made use of what I believe to be an 'illegal' overdraft facility. Called a 'buffer', this banking system's internal electronic overdraft allowed account holders to unknowingly access more funds than they had.
If an account holder attempted to electronically withdraw, while unknowingly having insufficient funds in the account, the bank would often automatically give them money and then charge them a $30.00 reference fee.
In order to explain this I will give an example. John has only $50.00 in his NAB 'Flexi-Direct' Account. His salary of $400.00 is usually electronically paid into his account on a Friday. Somewhere in the works there has been a stuff-up, and this account has not received the funds. On Friday afternoon, John makes an Eftpos purchase to the value of $100.00, believing that his wages have been paid in as usual.
The NAB's 'buffer' approves John's purchase, but he has unknowingly overdrawn his account by $50.00. As such, the bank penalises him with a $30.00 reference fee for overdrawing his account.
The 'buffer' facility would allow the overdrawing of accounts, not only through Eftpos transactions, but also through NAB and non-NAB ATM withdrawals, Internet transfers, and phone banking transfers. The 'buffer' (overdraft) limit amount was flexible, and could increase automatically depending on the average balance and health of an account. At one point while I was employed by the NAB, I had a 'buffer' facility of over $600. I discovered this, to my disgust, when I went into the BOBS computer system to investigate.
Customer Service staff were expressly told NEVER to divulge the internal 'buffer' facility to clients.
I personally dealt with so many clients who had been charged 'reference fees' on numerous occasions that I couldn't begin count them. It was only towards the end of my time with the National Australia Bank in 2001 that the bank began reversing such fees as a once-only gesture, and only if there had been a complaint.
The mere fact that we had been told not to talk about the 'buffer' facility, suggests that it could never have been part of the Terms and Conditions of the account.
This underhanded 'overdraft' facility was not agreed to by clients, and would have raked in an absolute fortune for the NAB.
If this ever happened to you, I would appreciate your comments.
posted by Roobok @ 1:10 am
2 Comments:
Just had this happen to me. Thought I had more money in my account, and believing that the ATM would let me know if I had insufficient funds (like any other banks I've used), overdrawn it by just under $50.
Bam! $30 reference fee.
Yes, it was partially my fault, maybe I should keep better tabs on my balance. But it's a dirty way to catch people out for a few bucks!
So do you think I should call and complain for a "once-only gesture" refund? Any hints? Can I tell them NOT to provide me with this "buffer" or set it to $0 in the future?
Thinking about it, one can just as easily hit the wrong button at the ATM, withdraw more than intended, and get hit with this too.
Perhaps I shall take my banking elsewhere.
Unfortunately simon, not too long ago, these thieves included reference fees for this purpose in an update in "Terms and Conditions". You should have read it.
What you need to question them on, is the reasons why some reference fees exist in some instances. Find out what they say when explaining this to you. Do this on the phone and at the branch.
Ask how you account can overdraw if you don't have a overdraft facility.
They'll mumble-jumble the usual rubbish that we were trained to use - some of use refused to.
You will most likely get a one-off gesture from them, but that's not helping the many others who are effected.
Get it in writing. You want a letter explaining why the bank allowed the ATM to give you more money from your account than you actually had.
They probably won't mention 'buffer', but ask why they have such a system. Get as much from them as possible, and then contact the BANKING OMBUDSMAN on 1300 78 08 08
You'll get that money back, and raise a fuss.
The method they use is sickening
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