Delays in updating mandate caused some stress but no financial loss

Categories:

Delays, Advice & information, Bank accounts,

Summary:

Ricky asked the bank to close his mother Karla’s personal and trust accounts. Karla had been diagnosed with dementia. Ricky and his brother Oliver were appointed trustees of the family trust, but Oliver lived overseas and needed to become a customer before the bank could update the trust account mandate. Ricky said this process was confusing and inconsistent and resulted in needless delays, which caused distress for his mother and the wider family. He asked for compensation for stress, inconvenience, and legal costs.

Published:

April 2026

Our investigation

Ricky first contacted the bank in early June 2025. It told him Oliver would have to become a customer of the bank before it could update the trust mandate. In the following weeks, Ricky received inconsistent information from different bank teams about how Oliver could complete this process. The bank clarified its requirements in mid-July.

The bank did not initially know that Karla had dementia. When told, it asked whether Karla could confirm Ricky’s power of attorney or whether a medical certificate could be provided instead. This was an appropriate step to protect vulnerable customers.

We did not find the delays in completing Oliver’s paperwork resulted in any financial loss. The trust’s term deposits did not mature until afterwards, and Ricky chose to leave them in place. We found the bank gave inconsistent information that caused Ricky some stress and inconvenience, and we recommended the bank pay him $500 in compensation.