Bank's Fix For Erroneous Charges: Disclose Personal Information To Other Customers!
Taking outsourcing to an extreme, Bank of New Zealand decided that instead of figuring out why one woman's charges ended up on another customer's account, they would just give the customer the woman's name, home address, work address, email address and cellphone number so they could settle things for themselves.
The Carterton man, who asked to remain anonymous, told the Herald that when he and his wife noticed the Auckland purchase they called BNZ to ask what went wrong.
He said he was "astounded" when a staff member denied the bank was responsible and then gave him Mrs Hansford's home address, work address, mobile phone number and private email address so he could sort the situation out himself.
"We were advising them of a fraudulent transaction and they couldn't care less," he said.
"I was incredulous and surprised and wondering why the bank didn't do basic checks like the person's name and address before the transaction. Their basic response was 'tough - if you don't like it - tough'. Which was when we cancelled the account."
Bank of New Zealand offered the woman $2,000 to apologize for sharing her personal information. She turned it down and canceled her account.
Customers' anger as bank passes on personal details [New Zealand Herald]
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Comments:
Congratulations to the woman for turning down the money. Not an easy thing to walk away from
@Megalomania: Seriously - most would have taken the two grand to quiet down. Some would have taken the two grand and THEN cancelled their account a couple of days later.
Might have been nice if she had taken the two grand and given it to a charity instead of turning it down. To each their own. I'm still just amazed she turned it down.
@Julia789: It's 2k NZ Dollars...she didn't need to buy a soda from a vending machine today ;)
I kid, I kid
@JustinAche: Why is that supposed to be funny? Te USD is not what it used to be 2000 NZD is 1,312.50 USD.
For those of you unfamiliar with the USD-NZD exchange rate, as of 26Jul09, the lady in the article turned down $1,312.44 (US.)
@ivanthemute: Nothing to sneeze at in either currency. Though in the U.S. that would've just been rejected because it was their first offer and the threat of a lawsuit would probably push it to $5,000 or maybe $10,000.
The privacy commissioner is quoted in that article saying "The release of personal information by a bank should be a last resort." No, it shouldn't be any kind of resort at all. It could be released to law enforcement if this really was a case of fraud, but to other customers? Gah!
I'm not sure to be pleased or sad that bank-related stupid is apparently not limited to American banks.
Is it just me or has there been a rash of bank error stories coming out of New Zealand lately? Like that guy who pulled out his savings in all $20s and then the guy who fled the country with a $2 mil NZD after an overdraft error?
"A woman who typed in one wrong number from her credit card and mistakenly accessed another customer's account..."
wow. that's disturbing that all it would take is one number off to use someone else's account. I would think this would occur far more often if there was not an automatic check system in place to vet the transaction details. Else anyone could buy whatever they wanted, so long as they never used their own account number.
I looked around the BNZ site and could not find a Privacy Policy posted anywhere on the website, though I found this [www.bnz.co.nz] ironic when coupled with what the woman said:
"Mrs H. said she was eight months' pregnant at the time and had suffered emotional trauma and stress during what should have been a happy time before the birth of her second child.
"If he was a nasty individual he could have been at my front door and he could have been quite angry.""
@doireallyneedausername: The 20s wasn't a bank error, was it?
He was denied the loan, got ticked, and tried to take his money elsewhere, but it (legitimately) ended up back at the same bank, since the bank he took it to sends their cash there.
Maybe I missed part of the story /shrug
@jenjen: Perhaps that's what it implied. Once it goes out of the bank's internal systems (ie, the police) it's technically the release of personal information.
It's entirely possible that they aren't even printing the whole of what the commissioner said. The way the article is written, it makes those sentanced look more like it was bullet point summary of the major quotes.
@doireallynedausername
These are just the ones that float to the surface
Try this [youmustbefromaway.blogspot.com] for size.
Or this [youmustbefromaway.blogspot.com]
And ask me to tell you the story of when I ask them to transfer $10k from an account with $20k to an account with $500.
"So which account do you want it transferred from, then?" was the brainless question.
Given that I don't have (or need) an overdraft facility, you can imagine my WTF look...
It goes on. And on. And on.
@jenjen: She just didn't understand. They basically admitted that they didn't have any security on the accounts, then gave out the other party's account information- "So they could work it out themselves". Sounds like an invite to just help themselves to the difference using the other person's account.
I kid you not when I post that keeping your money in a bank is an open invitation to theft. Your mattress is a much safer place. Banks are no longer what we used to think of banks. They are no more than a used car lot hiring mortgage sales people, who know nothing about banking but who can get you to purchase a loan (which the bank will promptly resell). Their source of income is fees: over draft, insufficient fund fees, maintenance fees, returned check fees, etc. Stay away from banks.
I had submitted a change of address for my bank when I changed PO Boxes. They changed my parents information (different last name, address, and city) as well as mine. When I called the bank to complain that I was receiving someone else's bank statements, they said I would need to contact the other person and have them request an address change. Needless to say, I don't bank there anymore.
I like how the person requests to be anonymous for the story, but in the next line, he give the other persons last name (Mrs Hansford) without no issues.
@bwcbwc: the following line from the story tells me she'll be back for more w/ counsel:
Mrs Hansford said she was eight months' pregnant at the time and had suffered emotional trauma and stress during what should have been a happy time before the birth of her second child.
@Julia789: Absolutely. I would have taken the money and then quietly canceled my account later.
Of course, BNZ probably put fine print on the check stating that by cashing it you agree to a fee-riddled account with them in perpetuity...
@coan_net: Read the original article...Mrs. Hansford was actually interviewed for the story, which makes me think she was okay with her name being printed.
Oh BNZ. Don't you know that when issues of extreme stupidity occur, they will hit the internet and cost you far more in customer loyalty and good will in the long run? THat really should be part of modern CSR training: damage control.
Yes, sometimes the CSR doesn't have the power to fix the problem, but just as I have to consider what pictures I post on facebook since my coworkers can find me, CSR's need to be trained to think about longer-term ramifications of their responses. "Umm...I've never seen this before, let me get my manager" is better than "I can't help you, you'll have to deal with it yourself."
@veg-o-matic: It is possible she refused the money so that if there were damages from the disclosure she would be in a position to sue later. If she accepts the money, that could be considered a tacit acknowledgment of settlement.
Someone needs to be fired and banned from working with confidential data for the remainder of their life.