ubank Closing Inactive Account with 1 Month Notice

watwatwat on 24/02/2023 - 15:00
Last edited 27/02/2023 - 09:27 by 1 other user

Is it legal for ubank to do this?

I thought in Australia, deposits at banks were protected up to $250k?

https://www.apra.gov.au/deposit-checker-are-your-deposits-pr…

"We’ve noticed that your account(s) below haven't been used for some time and have a balance of $20 or less.

However, if you've recently made a deposit, please ignore this message. Your account will remain open.

We want to make sure you’re getting the most out of your account(s), so read the options below to either keep it open or close your account(s).
Keep your account open:
If you’d like to keep your account(s) open, you’ll need to deposit some funds (this can be as little as $1) by 27 March 2023.

OR
Close your account:
If you’re happy for your account(s) to be closed, you don't have to do anything, and we'll simply donate the remaining funds to charity after 27 March 2023."

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closed Comments

  • randomusername2017 on 24/02/2023 - 15:06
    +50

    Financial Claims Scheme covers you against loss in the event of the institution failing.

    General housekeeping for low balance accounts is a totally different concept.

    • Tommyaka on 25/02/2023 - 17:29
      +4

      I would have thought that a financial institution is obliged to give any unclaimed monies to a State or Territory Public Trustee.

      • randomusername2017 on 26/02/2023 - 18:24

        Think that only applies to amounts over $100 inactive for 6 years in NSW.

  • GG57 on 24/02/2023 - 15:07
    +45

    There is a third option; you transfer your funds out and close the account.

    • watwatwat on 24/02/2023 - 15:16
      -2

      I logged in and tried to transfer. It says:

      "Sorry you don't have eligible accounts to do the transaction"

      "But don't worry, our awesome app makes it even simpler to save, transfer, track and manage all of your money from the palm of your hand. We are constantly updating and improving our app to include new budgeting features and more insights into your spending habits."

      So it's really "here's a bunch of hoops to jump through otherwise we will steal the balance in your account".

      • randomusername2017 on 24/02/2023 - 15:19
        +8

        PM your account number and I'll deposit some funds(this can be as little as $1) by 27 March 2023…

        I think you'll find the account becomes active after making a deposit as listed in option 1.

        • echelon6 on 24/02/2023 - 22:05
          +30

          wat

          tell him to deposit his own damn dollar

        • May4th on 26/02/2023 - 14:52
          +1

          PM your account number and I'll deposit some funds(this can be as little as $1) by 27 March 2023…

          or he/she/other can PM his/her account number/CRN/password/date of birth/address and their favourite colour to me and I can help them withdraw the balance

        • raginggiant on 27/02/2023 - 11:36

          Hey guys, we found a real life Nigerian prince!

      • watwatwat on 24/02/2023 - 15:20
        -2

        And when I download the app, it doesn't allow me to populate the 'from' account.

      • Bozman on 26/02/2023 - 11:58
        +6

        You seem to not grasp the concept of bank accounts. Perhaps keep your money under your mattress.

    • tessel on 26/02/2023 - 10:18

      What?!??

  • Ghost47 on 24/02/2023 - 15:08
    +17

    Oh no, god forbid your <$20 in an account you haven’t used in a while is given to charity!

      • Ghost47 on 24/02/2023 - 18:49
        +18

        Um, no theft has occurred Sherlock. The bank has told the OP to either deposit money into the account, after which I would think he would be able to withdraw the funds OR do nothing and they’re going to donate his money to charity and close the account. It’s not like they’ve just donated his money without asking.

        I realise that many like yourself 'feel' entitled to expect rich and poor alike should contribute to your utopian world perspective.

        Dumbest thing I’ve read in a while, well done.

          • Ghost47 on 24/02/2023 - 18:56
            +4

            @watwatwat: No, I mean like a way for you to get your money back. Or is doing that too much for you? I mean you did ask me (some random stranger on the internet) to call up the bank to do it all for you…

            • Assburg on 26/02/2023 - 16:28

              @Ghost47: The lack of a response does not constitute a response, and cannot legally be viewed as such.

        • ssfps on 26/02/2023 - 22:24
          +3

          Why the (profanity) can't they just keep his $20 on the books until he can get it out? The interest on it is going to pay for the few extra kilobytes of storage to keep it in active storage longer. What if he had cancer and was poor? Yeah it's not a life changing amount of money, but it's still bullshit. Financial institutions are suppose to be good at accounting and trustworthy.

          This is like a huge bully telling you "if you don't want to be mugged for spare change, scream now", except the bully gets congratulated by onlookers because they mumbled something about "charity".

          • greatlamp on 27/02/2023 - 07:53

            @ssfps: Ubank in particular?
            They are migrating all their customers to their new platform, and intend to shut down the old one.

      • Ughhh on 24/02/2023 - 19:00
        +4

        Leaving <$20 in a account that hasn't been touched for yonks sounds like abandonment, from the banks pov.
        Many unclaimed items from lost and found gets disposed, donated, sold etc etc, is that still theft?

        • [Deactivated] on 24/02/2023 - 19:25

          No it seems to be less than safe custody of a loaned money on interest.

          • Ughhh on 24/02/2023 - 21:00
            -1

            @[Deactivated]:

            We’ve noticed that your account(s) below haven't been used for some time and have a balance of $20 or less.

            Seems like they don't want ops abandoned "loaned money" of whopping <$20.

      • Daabido on 26/02/2023 - 15:54
        +1

        Yeah, lots of champagne socialists here.

      • Peeper on 26/02/2023 - 09:44
        +9

        So you’re just a grifter?

    • Not SkyNet on 25/02/2023 - 08:25
      +11

      Just remember this is a trick as the bank takes the money and then donates it to charity. meaning THEY then claim this as a charity payment for them allowing them to get even more tax breaks.
      I'd be happy with the donation BUT i would also ask for my charity donation receipt not so I can claim on tax but to make sure the bank doesn't do it.
      Note this is the same scheme that stores using saying do you want to round up and donate to charity.

      • ssfps on 26/02/2023 - 22:28
        +1

        That's a good point, and beyond that, charity can mean anything from "i bought a homeless man new clothes" to "i gave some administrator their monthly payment on their jag, and someone somewhere got a few cents to beat up cancer, or something".

    • Sinnerator on 25/02/2023 - 08:37
      +2

      Except when it happens to YOU.
      Then you are all hypocritical screams.

    • [Deactivated] on 26/02/2023 - 13:36
      -3

      RSPCA here… Some neighbours noticed you haven't taken your dog for a walk for a while… If you're not seen walking your dog in the next 30 days we'll drop by, take it off your hands, and give it to someone else of our choosing.

      Motor registry here… Your car hasn't been photographed on the intersection street cam you have to drive past when leaving your street… If you don't drive your car in the next two weeks we'll send a locksmith around and take your car to be recycled.

      In what warped reality does something that's MINE automatically become someone else's just because I haven't used it for a while!? I have several accounts with $1 or even $0 balance used for different purposes. If I didn't NEED those accounts to do things, like apply for a phone SIM or whatever, I wouldn't have them. But I'm FORCED to, to use some service. It's still MY damn money lol!

      • Ghost47 on 26/02/2023 - 15:57
        +2

        Your comment doesn't really make sense and is fraught with silly slippery slope fallacy examples.

        I don't know about pets, but you understand the reality if you neglect your children that people can dob you in for it and you'll get a visit from social services and they can be taken away, right? If it's the same for pets, by your logic you're essentially saying it's ok for people to neglect their pets. I don't know about you, but people shouldn't get a pet if they can't take care of one properly. That's why dogs bark at night at all hours, it's why people dump their animals on the street, it's why there are stray animals everywhere. IMO also people certainly should not have kids if they're going to neglect them either.

        In what warped reality does something that's MINE automatically become someone else's just because I haven't used it for a while!?

        In what warped reality do you live in where the OP's money has already been taken away? They have been given an option to act, if they don't act it will be taken away. Just like if someone doesn't pay a bill on time they won't get electricity anymore or a phone service.

        It says this in UBank's T&Cs:

        (Note: if you have not operated your account for 7 years, your account may be closed and the balance transferred to the Commonwealth Government as unclaimed money)

        So it appears that the OP hasn't touched their account in SEVEN YEARS. The only issue here is that they've said they're going to donate it to charity and not the government, if OP wants to complain they can complain about that.

        Do you know how T&Cs work? Do you know who writes them? Because if you sign up to a service, you are agreeing to the T&Cs, or are you the type to not read T&Cs and when something doesn't go your way you just blame the service provider?

        • randomusername2017 on 26/02/2023 - 17:56
          +1

          account in SEVEN YEARS.

          Doesn't sound like the 7 year ditch. More like cleaning out dead weight low balance rarely used accounts.

        • [Deactivated] on 26/02/2023 - 18:25
          +1

          We're forced to accept T&Cs because we're also forced in many cases to not use cash. i.e. We MUST use banks. So it's still morally wrong to take what's ours, and for that matter, force us to agree to such things in a sea of legalese in the first place.

          Sure, most people will never encounter this situation (my electricity is debited from Ubank and I deposit $200/m for bonus interest), or he can go to another bank that doesn't do it (unless they all do), or just use the account… but I'm still weary of government/business/people trying to grift what's ours.

          • Ghost47 on 26/02/2023 - 18:52

            @[Deactivated]: That's all fair and I don't think it's a bad thing to be concerned about that kind of thing really. We are in a stage where it seems like the "you will own nothing and be happy" saying is becoming more true.

            The fact is though that the OP is using the bank's service and has to agree with their T&Cs. It might be morally shady they can close an account and give the OPs money away but it's their policy.

            • ssfps on 26/02/2023 - 22:31
              +1

              @Ghost47: The T&C you quoted say

              may be closed and the balance transferred to the Commonwealth Government as unclaimed money

              Not

              We'll give your money to a charity of our choosing.

              Also, that quote doesnt mention anything about notice, but 30 days notice isn't very long for confiscating unclaimed money of any amount.

              • Ghost47 on 26/02/2023 - 23:10

                @ssfps: I said in other comments that that's the only thing wrong with the T&Cs, that it states they'll give the money to the government and not a charity.

                The quote doesn't mention the notice period it but the T&Cs do, it states "reasonable advanced notice". 30 days isn't very long and sure, it might not be considered a "reasonable" amount of time but OP had seven years to use his account.

    • markathome on 26/02/2023 - 13:49
      +5

      Actually I'm with OP on this one. This bites and have a feeling the tax deduction will be done in NAB's name. NAB has bank cheques they just need to use them. Instead they're going to claim money off the Australian taxpayer for their own laziness. File a complaint: https://www.afca.org.au/

      • Ghost47 on 26/02/2023 - 16:14
        +3

        You can go with the OP all you want, the fact is that UBank's T&Cs state they will close an account if it hasn't been in use for seven years. The only issue is that the T&Cs state the money will be transferred to the government, so OP can complain that they've advised the money will go to a charity which is inconsistent with the T&Cs.

        Commbank's T&Cs (p. 35) states something similar. I would bet that other banks have similar T&Cs.

        You can report it all you want but you won't get anywhere.

        • ssfps on 26/02/2023 - 22:33

          T&C and contracts in general aren't the law - often they contravene the law.

          I don't know anything about laws around this, but it wouldn't surprise me if giving to this 'unclaimed money' government fund is legally a last recourse after the bank tried to send them the credit in other ways, such as a cheque.

          I'd make the afca complaint if it were me.

          • Ghost47 on 26/02/2023 - 23:01
            +1

            @ssfps: I never said they were law. They are simply what you agree to when you sign up for a service or use a service. The fact it is somewhat anti-consumer is beside the point.

            • ssfps on 26/02/2023 - 23:22

              @Ghost47: I could agree to let you cook bits of me on a bbq, it's still illegal and someone could make a complaint to the police.

              Just pointing out that it's not necessarily true that markathome's suggestion to make a complaint will go nowhere just because of a clause in a T&C.

              • Ghost47 on 26/02/2023 - 23:38
                +1

                @ssfps: Fair enough. As the T&Cs state, the money is supposed to go to the government. I honestly wouldn't be surprised if whoever wrote the email didn't bother to check the T&Cs properly and simply miscommunicated where the money will actually go. From what I saw in another link posted, the money is given to ASIC who then give it to the government which people can track down, i.e. "unclaimed money".

      • SolitaryMan on 27/02/2023 - 17:57

        If an account has been abandoned they can hardly assume the address on file is correct to issue a bank cheque.

  • freefall101 on 24/02/2023 - 15:12
    +20

    You should be writing headlines for tabloid magazines, that's a pretty loose usage of the word "stealing" and what deposit protection is all about.

    • paaj on 24/02/2023 - 16:50
      +11

      "Brazen bank steals money from mums and dads after achieving record profit"

      • watwatwat on 24/02/2023 - 18:28
        -6

        True. I hope dailymail picks this up.

    • djones145 on 24/02/2023 - 17:58
      +2

      stealing is such a harsh word…. should have used scam!

      • Switchblade88 on 24/02/2023 - 18:14

        Scam would imply deception by the bank. They're pretty straightforward in what they're going to do according to the OP's message.

      • Leadfoot6 on 26/02/2023 - 20:35

        What about misappropriation?
        I'm sure that term is a valid one.

  • randomusername2017 on 24/02/2023 - 15:15
    +4

    Found the Criminal bank

  • JVHifi on 24/02/2023 - 15:16
    +30

    Let's be honest. You probably forgot you even had this money in UBank until you received this email!

    • noshopping on 26/02/2023 - 21:01

      I wonder how people would feel if it was Bitcoin……

      "The Bitcoin Network has detected this wallet with 10 Bitcoins, purchased 5 years ago at $1 each, will now be automatically donated to the Bitcoin CEO due to account inactivity, please withdrawal or deposit more Bitcoin or we will automatically sell it at market value, take it and then donate it. Of course, we'll also claim a tax deduction on it. Thanks"

      Banks have also been jacking up interest rates within days of RBA increasing rates, but have not been increasing savings rates at similar rate/time. Gov has already launched an investigation into this, but we all know it'll go nowhere.

      • Mikeer on 27/02/2023 - 01:08

        Ah yes, the mythical Bitcoin CEO, the crypto-hacker known only as Shigeru Miyamoto, who already gave himself a million coins way back in 2009

      • DingoBilly on 27/02/2023 - 14:03
        +2

        Yes let's compare losing $20 to losing $200,000.

        Very valid and fair comparison.

        • noshopping on 27/02/2023 - 14:37

          So if they closed it a few years earlier, then you'd stand to only lose a few bucks? So that makes it OK? What if they change the rules so it gets closed after a year of non-use? What if you owe the bank $20 in a high interest credit card account and left it for a few years, do you think the bank will waive the hundreds in interest charges? Fairness goes both ways, the funds should be held at the bank and if not claimed after 2 years, donated. Instead, the email states the money gets donated as soon as the account is closed.

    • Name on 28/02/2023 - 13:01

      Agreed. I forgot I had a ubank account. Turns out I had $1.26 in it. $1.26 isn't worth the effort of trying to remember my password.

  • Ocker on 24/02/2023 - 15:23
    +19

    Nothing to do with UBank "stealing" your funds, or "giving it to charity.

    Rather this is a government initiative and Financial institutions are legally required to escheat, or transfer, funds in a dormant account to the state after a set period of time has passed.
    The state holds onto these funds indefinitely where you or a beneficiary can reclaim them at any time.

    So please cut the hysteria

      • Ghost47 on 24/02/2023 - 15:46
        +19

        You have to option to “send the money to you”, it’s called logging in and transferring it to where you want it to go.

        If you can’t be bothered doing that then it seems like the balance is inconsequential, and getting mad about it therefore makes zero sense.

        • watwatwat on 24/02/2023 - 18:05
          -3

          I did log in, downloaded their two separate apps, tried on web and discovered it not to be possible: https://www.ozbargain.com.au/comment/13423767/redir

          If it is so easy, you want to call and wait on hold on my behalf?

          • Ghost47 on 24/02/2023 - 18:45
            +3

            @watwatwat: How many bank accounts do you have if you haven’t been using this one?

            UBank migrated their systems recently, maybe that’s why you’re having issues. It’s your own fault for not being on top of your own life admin, and now you’re asking randoms to call them and fix it for you? Lmao.

            • ssfps on 26/02/2023 - 22:37

              @Ghost47: So you have a go at OP for being lazy for not logging in, then when he points out you're an idiot making assumptions, you say okay that sucks but it's his fault he has to deal with their shitty system, without knowing any details. Nice.

              • Ghost47 on 26/02/2023 - 22:53

                @ssfps: The issue the OP has is not that he can't log in, it's that his money has been "stolen", which it hasn't.

          • whiskeyjack89 on 26/02/2023 - 09:29
            +1

            @watwatwat: It is possible, you just dont know how

      • freefall101 on 24/02/2023 - 17:23
        +3

        That you had to try three different methods just to transfer less than $20 suggests there's a PEBCAK issue. You should get it looked into.

        • watwatwat on 24/02/2023 - 18:06

          What are you talking about? People on here go wild for $3 cashrewards deals.

          • CocaKoala on 26/02/2023 - 10:13
            +1

            @watwatwat: Lol, that's actually true. That's in spite of these companies having had massive data breaches.

            But the next thing they offer a $2 "reward" the same people are queueing up and posting about it, ready to hand in all sorts of personal data.

      • t_c on 26/02/2023 - 15:49
        +1

        Deposit $1 and that will buy you another 7 years to work out what to do

        • Ditchie on 26/02/2023 - 16:58

          …and then your $21 will get donated when the time's up.

    • trustnoone on 24/02/2023 - 15:32
      +2

      I don't get what you mean, from OPs message, the message legit says its giving it to charity? Not the state governments financial institution?

      If you’re happy for your account(s) to be closed, you don't have to do anything, and we'll simply donate the remaining funds to charity after 27 March 2023."

      • randomusername2017 on 24/02/2023 - 15:41

        Probably below the threshold to be sent to OSR.. mentions it's less than $20 so could be as low as 0.05c..

        • Tommyaka on 25/02/2023 - 17:30

          Could be as low as 1 cent…

    • [Deactivated] on 26/02/2023 - 13:40
      +1

      Rather this is a government initiative

      Oh well that explains it. They're experts at taking money that doesn't/shouldn't belong to them.

  • mbck on 24/02/2023 - 16:14
    +2

    Wat

  • Seraphin7 on 24/02/2023 - 16:34
    +10

    Here's a red hot tip … this doesn't happen without lawyers pouring all over it and giving it the go ahead … so, yeah, it's legal.

    Here's another one … drop $1 into the account in the way specified and the whooooooole problem goes away.

    • TheGhost on 24/02/2023 - 16:38
      +5

      Don’t be so naive.

      How can OP do it in one month? It takes way longer to transfer money to a bank account these days.

      • Seraphin7 on 24/02/2023 - 16:39
        +2

        Soz, yes, forgot I'm living in 1923.

        • McFly on 26/02/2023 - 14:26

          Cool. What's your address?

      • [Deactivated] on 26/02/2023 - 13:44

        I've seen posts by people who try to use their bank account from overseas, get locked out, and can't use it until they return to Australia (overseas IP address gets blocked as suspicious activity). So it's not unheard of to be unable to transfer that $1.

    • CrowReally on 24/02/2023 - 16:48
      +4

      Spend $1 following the instructions to prevent it being a problem? But then what would OP post about?

      Don't listen to them OP, you need to go down to your local Red Rooster carpark with a cardboard sign that says "BANK THEFT MY $3.20??? NO THANKS SIR NOT TODAY" and start yelling the text from the UN Charter on Human Rights.

      Eventually one of the fast food workers will come out and say "Hey listen I've just realised that we're the bank you're upset with and we found your missing $3.20, so here it is and now that you've closed your account you can never come back here again bye".

    • happydude on 24/02/2023 - 18:23

      this doesn't happen without lawyers pouring all over it and giving it the go ahead… so, yeah, it's legal

      The Banking Royal Commission has entered the chat.

  • [Deactivated] on 24/02/2023 - 17:34
    -8

    I agree OP. Unfortunately this lot would shill FTX because SBF was 'rich'.
    A central account at ATO would solve the problem - they manage tax credit and HECS so no reason they can't do a minimal amount. I cannot think of anything more capitalistic than donating other peoples money. UBank is likely using the aggregated funds donated for it's own wokefluencer social media to hide their pure profit usary.

  • RockyRaccoon on 24/02/2023 - 17:37

    Why deposit anything, nothing wrong with withdrawing $1 and the account is active again.

  • AustriaBargain on 24/02/2023 - 18:36
    +3

    Keep the account in negative so they can take money from charity to zero the balance when they close it. I did this to an ANZ account I'm pretty sure I didn't sign up for. They kept adding monthly fees and eventually they just erased all the fees and made the account fee free. I still never use the account, I get balances in the mail showing zero dollars every three months. I probably should just close it.

    • Minimum chips on 26/02/2023 - 10:53

      Are you worried that account might have been involved in fraud? Were you part of any data breaches? Not that you'd be liable, but it could be a pain in the ass.

  • DoctorCalculon on 24/02/2023 - 19:12
    +10

    LOL! LOL! LOL!

    It would have taken OP less time to deposit $1 into his account via Osko than to create this clickbait thread.

  • ihbh on 24/02/2023 - 19:44
    +1

    ubank Stealing Customer Funds

    Haven't used your ff or velocity points in X, what do you think happens; they don't give it to charity. Pls make another post.

    • watwatwat on 24/02/2023 - 21:06
      -2

      Fake points from a private company is different than Australian legal tender.

      • randomusername2017 on 24/02/2023 - 21:11
        +4

        Would it be easier to understand if they just introduced an account keeping fee of $5p/m for balances under $20?

  • onetwothreefour on 24/02/2023 - 19:58
    +4

    I got the same email but was too outraged to post it, thanks OP!

  • GordonD on 24/02/2023 - 21:09

    Funds in inactive accounts go to the government. There is a time you can claim it, but once that time expires, that's it, its gone.

    So this particular bank is just offering an alternative for inactive accounts with small balances. If you don't want it, they'll donate it to charity before the government grabs it.

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