Commonwealth Bank ripping me off

LLPH on 01/09/2014 - 21:13

I have a problem with Commonwealth Bank which I hope to get some guidance on what to do.

I have some $$ and waiting to buy a property, not much success as not able to find anything. As advised by CommBank I put my $$ in a Goalsaver account as it has good interest rate. This account has some restrictions though. You must not withdraw any $$ in the whole month and deposit minimum $200 per month to earn a bonus interest which is paid on the 1st of each month. When I first open the goalsaver account at a branch, they helped me setting up an automatic monthly transfer of $200 from my normal savings account into the Goalsaver account so I don't have to worry about it. Over 2 years later, still haven't found any propertty and $$ in this account rises to above $100K, as I put all my savings into it. One day I rang up Commbank to enquire about my credit card limit and during the conversation, a Commbank person advised me that I will not earn any interest of my Goalsaver as it's over $100K, she advised that I should split it into another Goalsaver account, so basically I now have 2 Goalsaver accounts, each has < $100K and should be getting good interest. The Commbank lady said I don't have to do anything, she would set it up and do all the work. I should see the 2nd account linked with all my other accounts (credit card, savings, etc) when I log into netbank. It sounds good and I trust the bank does the right thing.

However last week I prepared my tax and realized that the 2nd goalsaver had not earned any interest for almost a year. This is because the $200 monthly direct credit had not been made. I lost almost $3K of interest. Panic sets in I rang them up explaining the situation, I told them that I don't remember when the 2nd Goalsaver account was created (almost 2 years after the 1st Goalsaver account) I was told of this $200 monthly deposit, they would need to revisit the recorded conversation. However the lady told me thathey might not have the conversation since it's like a year ago. Anyway she said since I already had the GoalSaver account I should know the rule. But seriously I don't remember the rule as it was all automated.

Is this a ACCC case? What can I do to make then repay?

thanks in advance everyone.

Financial

Related Stores

Commonwealth Bank
Commonwealth Bank

Comments

        • ilostnemo on 05/09/2014 - 12:15

          It's funny every year I hear the same doom and gloom figures about the real estate market, another clown has said the run is over, the link is posted below. He says the run is over then reports 15% increase in the last 12 months.

          The news headlines for 2015 and 2016,2017 etc will read "The housing bubble is about to burst" Get out while you can.

          To the OP, the lesson to be learnt is, you follow up on everything, especially when you are talking the sums of money you are.

          Another lesson, is no one looks after your money better than you.

    • Baysew on 03/09/2014 - 12:08
      +1

      Your a FOOL

      Only fools think that house prices will keep rising

      More fool you.

    • Thenarrator on 05/09/2014 - 13:23

      but inflation is somewhere around 3% and bonus interest is 4-5% .. so not really losing purchasing power

  • spriggy on 02/09/2014 - 21:41
    +1

    Rule no 1 (and really for anything), trust but verify. To only know this a year later smacks of a lack of diligence and assuming things are setup properly.

    During the conversation for the setup of the 2nd goal saver account, did the staff specifically say that they will setup the automated scheduled monthly $200 transfer?

    I'm sorry to say but this is your fault as you didn't check that it is setup properly. I'll say learn and move on as this could happen with any other banks as well.

  • jv on 02/09/2014 - 22:17

    Will all this be made into a movie ???

    • Baysew on 02/09/2014 - 23:19
      +1

      Yes, it will be an action adventure involving the OP being sent back to the past, to advert a future disaster.

      The sequel will be romantic comedy with the OP contacting the CBA and seeking a solution based on a business relationship. Maybe surprise Banking Ombudsman appearance.

      The third film, will be fantasy,about banks actually living up to their advertising, like the ANZ and the Mentalist Simon Baker. It will be a total flop.

      • McFly on 03/09/2014 - 00:36
        +3

        /me Pulls up in DeLorean. "You called?"

        • johnno07 on 03/09/2014 - 08:43

          Are you telling me that you built a time machine… out of a DeLorean??

        • edgar28 on 03/09/2014 - 14:51

          @johnno07:
          Washing machine that spins at the speed of light

    • Boshait on 05/09/2014 - 08:26

      Possibly, but there are many epic bad threads on Ozbargain.

  • mmd on 02/09/2014 - 22:28

    LPH: I really do hope there would be positive news for u at the end of this.
    Once the case is closed, I strongly recommend u go to a better savings account!

    The account allows you one withdrawal per month, but one thing that is not in their terms and conditions is the withdrawal amount (it could be in the small print, but who reads it seriously?). If your withdrawal amount is HIGHER than the deposit amount for the month, you would not earn interest for that month. For example, you deposit $200 for september, but then you withdraw $500 for bills. U will not earn interest for that month!
    It happened to me twice. The first time I went to complain, they said sorry but we cant do anything about it. The second time was when I transferred to another a better bank savings account and never looked back.
    Not sure if this rule applies to other banks savings accounts, but it really irked me.
    So fellow ozbargainers with a Goalsaver account, u have been forewarned.

    • Dan_ on 02/09/2014 - 22:57

      You're telling me you signed up for the Goalsaver account without bothering to read the readily available information and you kicked up a fuss about it?

      Do you see the second dot point there? Which is no less prominent, and is in fact lengthier, than the first dot point selling the high interest rate? Read it.

      "grow your balance by at least $200 by the end of the calendar month and make no more than one withdrawal in that month"

      it could be in the small print, but who reads it seriously?

      It most likely is, and believe it or not, there are people who like to make informed decisions. It really isn't that hard to skim through the critical details.This isn't the EULA on your iTunes or something. These are the terms and conditions attached to your bank account and YOUR MONEY.

      EDIT: I'm sorry if this is a harsh response, your previous comment indicates that you understand what your responsibilities are but I don't know what grounds you had to complain.

    • McFly on 02/09/2014 - 23:03
      +2

      news for u
      recommend u go
      U will not earn
      u have been forewarned

      Subliminal ad for UBank?

      • mmd on 02/09/2014 - 23:18

        a better bank savings account

        Pretty much, anywhere other than Goalsaver.
        I think Dan cant read it properly tho. I moved ages ago…

        • Dan_ on 02/09/2014 - 23:23

          Sorry, which part did I miss? I'm not saying the Goalsaver is a good product, as a matter of fact I politely declined the offer from one of the bank staff who explained the conditions to me quite clearly.

          And yes, I'm aware you moved to a different bank account but I don't see how that makes a difference… That should've been the first thing you did rather than complain about it. The CBA haven't done anything wrong to warrant a complaint, it was simply the case that it wasn't the most suitable product for you.

        • mmd on 02/09/2014 - 23:37

          @Dan_:

          "grow your balance by at least $200 by the end of the calendar month and make no more than one withdrawal in that month"

          it could be in the small print, but who reads it seriously?

          LPH is the person who havent got his/her interest for the whole year.
          My point was warning fellow ozbargainers about that particular statement that u mentioned. It states no more than ONE withdrawal per month. But it doesnt state the withdraw amount.
          It should state "If you withdraw more than you deposit for that month, you wont get any interest at all."

          And yes, I only made ONE withdrawal for that month.

          Once the LPH situation is sorted, and moves to Ubank (as an example), s/he wont get any interest from Goalsaver for that month. i.e Withdrawing 100k is greater than a $200 deposit, even if its just ONE withdraw.

          I was merely trying to forewarn ppl from my experience, otherwise we might get a post next month from LPH "CBA ripped me off again"" :)

          It happened to me twice. The first time I went to complain, they said sorry but we cant do anything about it. The second time was when I transferred to another a better bank savings account and never looked back.

          I moved ages ago, when i realised they screw me over the higher withdrawal than deposit.

        • Dan_ on 02/09/2014 - 23:50

          @mmd: First of all, they say "grow your balance by $200" and not deposit $200. That implies your balance should increase by $200 each month, which is different to depositing $200 each month.

          If you needed further clarification, then I'm pretty sure it would have been explained in the T&Cs (which is the small print… I'm not sure why you seem to suggest the two are different).

          In any case, that explanation can currently be found at the bottom of the product page, which I linked, under Important Information. In addition to clarifying the conditions for bonus interest, it also explains that the standard variable rate is 0.01% and the bonus portion is 3.99%.

          All the information you wanted them to provide is on that page. What's missing?

        • mmd on 03/09/2014 - 00:02

          @Dan_:
          Good point there.
          To me, that could mean min. $200 deposit per month, but ur still allowed ONE withdrawal per month, just in case there was an emergency i.e car accident bill. (sometimes shit happens)
          (Banks and their bloody wording.) I wished they write it down the bottom somewhere
          "If you withdraw higher than you deposit that month…"

          Good thing u didnt sign up as there are better products out there.

        • Dan_ on 03/09/2014 - 00:13

          @mmd:

          I wished they write it down the bottom somewhere

          … That's precisely what they did. Not in that exact wording but there is certainly no ambiguity there. It currently says the closing balance needs to increase by $200, in the aforementioned explanation at the bottom of the page.

        • mmd on 03/09/2014 - 00:39

          @Dan_:
          Good thing i only lost out twice, as i checked my accounts regularly…

      • momov3 on 03/09/2014 - 11:20

        Going to investigate, thank U for Ur idea. Was just about to go to CBA to start Goalsaver but better hold off till more research after U advised.

  • [Deactivated] on 03/09/2014 - 09:09
    +1

    Stop complaining about stuff that happens because you failed to keep an eye on it.

  • Turd on 03/09/2014 - 09:45
    +4

    Entitlement era

    • forever saving on 04/09/2014 - 09:45

      People complain too much, but it's not their fault. They will get given stuff for speaking out.

  • sintro on 03/09/2014 - 12:19

    $3k to them is nothing but it means a lot to you.
    Call them until they work out a solution that is to YOUR statisfaction.

    Read this and see if it infuriates you even more:
    Commonwealth Bank ripped off Bankwest customers 100’s of $millions yet are still above the law
    http://kangaroocourtofaustralia.com/2014/08/13/how-the-commo…

    • Dan_ on 03/09/2014 - 13:50
      +1

      What exactly was the breach of contractual or legal obligation there?

  • Ace26 on 03/09/2014 - 13:39

    Ask call to be escalated to a escalations team, demand to provide a copy of the phone conversation. They do keep recorded calls on servers for longer than a year. They are not readily available to normal reps but a supervisor can request them (there is some effort involved in doing so).

    Tell the person on the phone of your intention to go to financial services ombudsman if the matter is not resolve to your satisfaction.

    Details FOS

    http://www.fos.org.au/

    1300 780 808

    In the end it is your responsibility to keep and eye on your accounts, unless the rep explicitly was given instructions to set up a direct credit to the newly created account then you are not going to win this argument.

    Having said that bank wants to keep you as a customer and give the lost interest back

  • Smigit on 03/09/2014 - 13:48
    +1

    I don't think CBA is in the wrong in this case based on what is written above. She split the accounts as she said she would. From the post it doesn't say she said she'd also create an automated transfer. The automated transactions are not part of a Goal Saver set up process. Its a completely optional thing you can set up for convenience sake if you want to pay someone on a re-occurring basis or to shift money between accounts. By default it'll be set up for manual transfers.

    Unless there is something missing from the original post, I'd unfortunately say there's no case to take it further, and that hopefully the lesson is learnt to log in occasionally and keep a track of money coming in and out and any interest is being recognised. The issue should have been caught after 30 days or so.

    • edgar28 on 03/09/2014 - 14:54
      +1

      Their terms and conditions stated auto transfer is a service that they provide but does not guranteed it will occur, check at your own diligence.

      Same for credit card payment etc…….the bank has it well covered to protect themselves.

  • Randxyz123 on 03/09/2014 - 15:08

    All conversations are recorded so you might be able to go back and see if the lady on the phone said SHE would set it all up or you'd have to approve the transfers or set that up yourself.

    They likely do still have the recording so the only way to get proof either way is that. But really it is YOUR OWN fault for not checking the deposits every month.

  • KBwarrior on 03/09/2014 - 16:17

    I think OP realises that if they brought a property 2 years ago, they would have made 100k in capital gains and just upset they missed the boom. Instead left it in the bank to possibly gain 3k interest…….

    • Turd on 03/09/2014 - 18:49

      I thought renters were better with investing their excess money instead of having it sit in a bank account.

      Renting vs Buying debade

  • banzini on 03/09/2014 - 16:56
    +1

    TOTBKOT (totally off topic but kinda on topic) - I accidentally transferred money from my Progress Saver account to my CC with ANZ and transferred it back within seconds, thus meaning I get no bonus interest for the month (withdrawal made).

    The end of the month came and I contacted ANZ and they made a goodwill gesture and gave me my bonus interest for the month! woop ANZ!

    I watch my finances like a hawk everyday and if I had 200K and knew it meant I get 6k in interest per year, i'd wanna make sure I was receiving my funds every month and doing what I had to do to attain it.

    • forever saving on 04/09/2014 - 09:55

      TOTBKOT (totally off topic but kinda on topic)

      IDKTWAT. LADTATIC!

  • oO0Dam0Oo on 03/09/2014 - 18:50

    May have been an oversight on the posters behalf fair enough but if they want your business they should fix it in good faith otherwise take your money and go elsewhere.It was assumed that the $200 deposit would occur. People lead busy lives I think some of the comments are a little harsh.

    • drdolphin on 03/09/2014 - 18:59

      Fix what? It's his mistake, not the banks. Why should they pay him (or anyone) $3k out of their pocket when it's his mistake, it would set a terrible precedent. Checking the account any time in the last year would have taken seconds. The OP is just a whinger looking to parlay the blame and most of the comments are fair enough. His mistake, he should wear it (not the other customers of the commonwealth bank).

    • Smigit on 03/09/2014 - 19:15

      Right, but what if every joe then goes in claiming they thought the $200 transfer was automated? Anyone else could claim the same thing. The bonus interest is the core component of this account, its the only reason the account is remotely appealing over a standard netbank saver, which comes with less restrictions at a lower interest rate. There's 'living a busy life' and there's not taking 5 minutes to log into the account once in the entire year. I really don't think people are THAT busy.

      While we obviously don't have the full financial situation, one can probably assume that if he has 100k+ in cash ready to spend then he's not doing too poorly off and the 3k will hopefully be soon forgotten. Hopefully it is just a blimp on the radar and he won't be too heavily impacted.

      Ultimately since the OP doesn't feel confident in managing his finances too closely himself, I think the best advice would be talking to a financial adviser and have them review his situation every 12 or 24 months. Otherwise I'm sure CBA would be willing to have a quick chat every year or so, although they'll probably be interested in selling additional services.

  • Qlander on 03/09/2014 - 22:11

    Have you set up the $200 auto transfer to your second Goal Saver account? Your original post suggests CBA is not at fault here. Clearly you haven't met the conditions to earn bonus interest.

  • robotsy on 04/09/2014 - 11:16

    The first thing you need to know about customer service representatives for anything in Australia is that they will promise you anything you want but may or may not do it once you hang up.

    So to prevent getting stung by such flakiness, you should always get an idea from the CSR on when things are meant to happen and then verify it has been done by then. Ideally, if you can do it yourself then you should.

    As for your current situation, it's unfortunate but I don't think there's much you can do but split up the funds to maximise the amount of interest you get for your money.

    • banzini on 04/09/2014 - 15:59

      I agree here, I would rather talk to o/s consultants (vodafone) than the AU counterparts. Usually get what I am after quicker and they're more willing to help

  • pheasant_plucker on 04/09/2014 - 11:18
    +2

    OP looking for someone else to blame for his own incompetence.

  • cyrax83 on 04/09/2014 - 13:13

    Your fault, you didn't comply with the T&C's. Move on.

  • KevinFine on 05/09/2014 - 09:06

    **This is worth noting that 4.00% is only valid until 10 September 2014, after which the rate will decrease to 3.80% **

    Paste from GoalSaver page.

    Important information

    *Between 16 July 2014 and 10 September 2014 the 4.00% p.a. rate includes a variable bonus interest rate of 3.99% p.a. above the standard variable interest rate of 0.01% p.a., which is paid on account balances up to and including $100,000 if the closing balance is increased by at least $200 (excluding interest earned on the account) by the end of the calendar month, with no more than one withdrawal in that month. The standard variable rate of 0.01% p.a. will apply on any portion of the balance over $100,000. On 11 September 2014, the variable bonus interest rate will reduce to 3.80% p.a. These rates are current as at 16 July 2014 but are subject to change at the Bank’s discretion.

Login or Join to leave a comment
Login Join