Bank Chasing Us for Money That Was Recently Fraudulently Charged to Our Old Credit Card 7 Years after Closing

For the sake of this conversation, we shall refer to this particular bank as "Eastpac".

So, early this year we started receiving robo calls to my home number supposedly from this particular bank of which we have not been a customer since 2013. They had my partner's name and the robot asked me if she was available, I was meant to press a number and go through some hoops to get more info about an important issue.

I ignored these calls for a few weeks thinking it was a scam. But then a few weeks ago we received a snail mail on bank letterhead telling us we owed several hundred dollars (on a card closed in 2013). We were asked in the letter to immediately pay $20 or else it would result in a debt default being recorded against us. They had card number and name correct but it still seemed very odd and wondered if it was a scam as we knew there was no money owing when we closed the account years ago.

Robocalls continued, and eventually we decided to contact bank directly about the letter instead of answering call. After getting a lot of runaround and explaining the story umpteen times to various employees after waiting a total of hours on hold it is discovered that the outstanding amount was a result of a fraudulent transaction being charged to the expired card late last year… remember this is 7 years after the account was closed.

Fraud department were seemingly initially unable to do anything about it as they couldn't figure out how to cancel the transaction on a closed account and asked us to contact another email address or visit a branch and waste yet more of our time (no branch in our town), no offer to get it sorted from their end. Eventually after some serious phone tennis it appeared that someone at the bank was able to help and said they had wiped the debt.

But we are still getting calls from the collection arm of the bank. So we rang bank again and got them to remove our phone number from their system. Within a few hours we got another robocall, and then again this morning. I answered and explained the story yet again, and asked them to remove my number from system yet again which they supposedly did. I do have the feeling my wife will start to get calls at her work now though as they have called there before.

Worried now that the debt is still somewhere in their system and might affect credit score so think we'll be asking for written confirmation from them rather than just a phone call.

Has anyone else fallen prey to this particular fraud loophole where your old expired card is being fraudulently charged many years after account has closed? Was your experience as frustratingly similar?

Comments

  • +20
    • Yeah, was considering that already. More time wasted though.

      • +5

        Afca is legit though. They’ll sort you out no issues.

      • +13

        Takes only a couple of minutes to fill out th it online form. Or you can just continue to waste hours talking to Westpac and getting nowhere I suppose.

      • +3

        Yeah, this should be your first port of call. Prior to a post on OzB :)

  • +2

    Your card should have an expiry date and the CVV should have lapsed. There is some brief time after a card expires that transactions can continue, but years after I think you are safe if you just detail facts.

    • Yeah for sure, very strange how this was allowed to go through the bank's system and one of the staff did mention this is a new method fraudsters are using… unsure how this happens though.

    • There is some brief time after a card expires that transactions can continue

      Source please?

      • +1

        You must be a bit young. :p Don't you remember restaurants taking carbon copies of cards? They weren't networked or even electronic and certainly not instant. Many merchants still process manually, well after the point of sale. Just because a card is cancelled or an account is closed, it doesn't mean it can't be charged.

        • Oh ye olde 'click-clack' machines…I have a vague recollection…

          But yes, I was thinking along the lines of online authorisations (not offline or forced authorisations) and also wondering how brief is brief?

          • +1

            @John Kimble: I have been charged 6 months after expiry of a card and closure of the account. The merchant was Texas Instruments, so reputable, but they had cancelled an order, then well after fulfilled it out of nowhere. TI had an incredibly manual ordering system and never checked dates before sending. I spoke to the bank about how it had been allowed on an old closed account and they said it was standard. I can understand one month, maybe, but 6 months is pretty crazy.

            I actually had multiple issues with TI, but interestingly it was payment issues after things had already been sent. They live in the olden days and didn't check clear payment before sending.

            • @[Deactivated]: 6 months, crazy!

              The only situation I was aware of was certain "subscription" merchants where it was not mandatory to include expiry dates or CVV when they debited (this was supposedly to reduce impact to the end customer when their card expires etc ).

              Think along the lines of charities, gym memberships, newspaper/magazine subscriptions…but perhaps these days Spotify, Netflix etc

              I'm not sure if this is still a thing though.

      • +1

        I have been told by CBA that it was 3 months, gives you time to fix up direct credits and the like that you have missed, and also for any transactions that merchants haven't processed yet.

  • +2

    Get written confirmation, scan and archive. Incompetent EastBank!

  • +2

    You can dispute a bad credit report, just provide all your evidence to have it removed if they do add it to your file.

    • Good to know thanks.

    • doesn't sound like fun

      • Yeah and the worst part is there's no disciplinary action for the other party if you do get it removed. Unless you sue them.

  • -4

    we owed several hundred dollars (on a card closed in 2013)

    But when did these transaction occur as you don't say?

    Just because you closed the account/card in 2013, doesn't mean these transactions didn't happen before you closed it and they are now only chasing the debt. Yes I agree its a little odd to chase it NOW, but still.

    You need to get a full statement from them and review.

    You MAY owe them money, you may not.

    • +1

      Nah this was a recent transaction on the card… read again:

      "it is discovered that the outstanding amount was a result of a fraudulent transaction being charged to the expired card late last year… remember this is 7 years after the account was closed."

      • Oh missed that bit. Then yes tell the bank to bugger off… The account was closed, the old card expired.

    • a fraudulent transaction being charged to the expired card late last year

      Late last year would mean Dec 2019, six years after closing.

      This situation hasn't happened to me but I have closed a CC account and verified that it was wiped from my account in the online banking site only to see it appear when I applied for a home loan. And not only had it re-appeared, it had been renewed after the expiry. I did not have the physical card anymore. Maybe something like this happened to the OP.

  • +2

    Get written confirmation you no longer owe the money. start there.

  • well no wonder eastpacs profits keep going up charging money on old closed accounts.

  • I normally joke about contacting Tracey Grimshaw, but this one is definitely for her.

    I can see saliva pouring out of her mouth in anticipation already

    • Yeah … nah.

  • I had something similar happen to me quiet a few years ago. A company that I had dealt with in the past, and had long ago closed my account with, charged a fee to a card that had been closed years before with a credit card company that I no longer deal with.

    The credit card company accepted the charge and then called me to "complain". I laughed at them, and told them that it had nothing to do with me and it was entirely their problem.

    Make an online complaint to AFCA as has been suggested.

    • Hmmm.. interesting. I wonder how often this happens and bank tries to pin it on ex customer.

      • Or waste your time here, hoping that the CEO will just cruise on by, and tell you they are going to fix it and send you on a 2 week paid holiday as a gesture of good will.

        You have your answer its AFCA

        • I've appreciated the suggestions, but the purpose of the thread was more to discuss whether others had experienced a similar situation. It just seems so bizarre that they would allow the transaction to occur in the first place.

  • Let us know how ti goes!

  • If you are concerned about your credit report, you can get a copy of it for free and see what's on it.
    https://www.oaic.gov.au/privacy/credit-reporting/access-your…

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