2015 - 2016

Payment systems

Telegraphic transfer

Mr E wanted to transfer money from his New Zealand account to his Australian one. This was delayed because his bank initially provided an outdated International Money Transfer form and then contacted Mr E several times to ask additional security questions.  The exchange rate dropped meaning Mr E lost money in the transfer.

Mr E wanted the bank to pay the difference between what he would have received had the bank actioned the transfer when he had first made the request and the amount he ended up with when the transfer went through.

The bank said it was cautious when it received Mr E’s request, which was for a large sum. The request came through an unsecure channel and Mr E had recently updated his contact details on the bank’s system so there was potential for fraud. The bank maintained it needed to take extra steps to verify Mr E’s identity and the authenticity of his transfer request.

We found that had the bank processed the transfer more efficiently, the money would have transferred a day earlier and Mr E would have received an extra $3,000 NZD.  The bank offered $3,500 for the loss suffered as a result of the delay and exchange rate drop, which Mr E accepted.