Our investigation

Before August 2023, the bank had no reason to suspect Jacques was suffering from cognitive impairment. The transactions, having all been carried out at ATMs, offered no opportunity for staff to interact with him and thus detect signs of incapacity or undue influence.  

Banks are not required to routinely review customers’ accounts for changes in banking habits. Nor are they required to question a transaction unless there are grounds for suspicion. In Jacques’ case, there were no such grounds. The few visits he made in person to branches during this time raised no possibility of financial abuse. From 1 August 2023, however, the bank knew about his vulnerability to financial abuse and ought to have taken steps to ensure it did not continue. We found the bank was required to compensate for losses incurred from this date onwards – a total of $700.  

Outcome

The bank offered Rhianna $700, along with $400 for inconvenience suffered as a result of complaint-handling delays. Rhianna accepted the offer.