Macquarie Bank Closing Account “Business Decision”

WoodYouLikeSomeCash on 11/07/2024 - 21:16
Last edited 12/07/2024 - 17:13 by 1 other user

Hi all, we recently opened a Macquarie bank account to use overseas thanks to their zero transaction fees.

However, after we used the account (which I transferred part of my salary into to purchase an Apple gift card at a discounted rate for buying a new laptop) our online banking access was restricted.

Today, we called Macquarie bank and spoke to someone who said that the bank had taken it upon themselves to close the account. As we had a remaining balance, we enquired where that money had gone to which they stated it had been transferred to a “MLC superannuation account” and that this was an internal transaction (so therefore was done by the bank itself). That day the bank also closed the account.

We were then transferred to a higher up department as the initial person we spoke to couldn’t assist us in why the account was closed or how we can get our money back. The person stated that the account was closed as it was a “business decision” they then referred us to section 9 of the terms and conditions. We asked for the specific reason and the person on the phone stated they cannot discuss it and they do not have the time to do so. We also asked to speak to someone higher up to which we were told “I am pretty high up” by the customer service representative.

Interestingly, we did not receive any communication from the bank that our accounts were going to be closed. We only found out through trying to login to internet banking and seeing an error screen. Furthermore, I thought the general practice was for unclaimed money to be returned to the customer (or at least the customer be notified about it), instead it appears the money has been taken by the bank and transferred into an investment account at “MLC”.

We even offered to provide bank statements that show the complete flow of money (from wage earned from working full time -> Macquarie bank account to purchase the gift cards) however the person on the phone said they can’t help us as they “can’t discuss anything” due to the account being closed and therefore they cannot identify us. Macquarie also will not even provide us with bank statements from the account they have closed and taken our money from.

TLDR: Macquarie Bank closed our transaction account. States it was due to a “business decision” and won’t tell us specifically why. Informs us they have transferred our money internally to an investment firm, “MLC”.

Has anyone had a similar experience with Macquarie bank like this? If so, how did you get this resolved and your funds returned?

Thanks,

WYLSC

Financial Bank Account

Related Stores

Macquarie Bank
Macquarie Bank

Comments

  • tekisei on 11/07/2024 - 21:19
    +10

    Step 1: Make a AFCA (Australian Financial Complaints Authority) for your case specifically. You may get assigned a case analyst after a month or so of back and forth between AFCA and Macquarie Bank.

    • WoodYouLikeSomeCash on 11/07/2024 - 21:29

      Yes, unfortunately it looks like we will have to go to AFCA.

      I was hoping there is someone who faced a similar situation that maybe had an email or phone number to call to get it resolved quickly.

      We are travelling internationally in a few months and would like to use the account and have access to the funds in it. I am hoping I can resolve it directly with the bank as I assume AFCA will take a long time to reach a resolution (which means we won’t have access to the funds or our account for the trip).

      • tekisei on 11/07/2024 - 21:36

        I had a dispute with an online payment processor a few months after the COVID lockdowns. Total process time with AFCA from submission until (successful) resolution took about 5 months.

      • ColtNoir on 12/07/2024 - 09:34

        Honestly, I’d look for another bank. Mac Bank isn’t as well known for consumer uses and is a relatively new player in that aspect. They likely don’t have the processes in place to ensure their compliance to KYC, anti terrorism financing etc. they’re covering their arse because of the behaviour your account has shown.

  • askbargain on 11/07/2024 - 21:23

    did you get the card? did you activate it?

    • WoodYouLikeSomeCash on 11/07/2024 - 21:24

      Yes, the card was activated.

      • askbargain on 11/07/2024 - 21:31

        unlucky. once you're debanked, no one can help you because they don't know what to do. ING and MQ are like that.

        • WoodYouLikeSomeCash on 11/07/2024 - 21:32

          It is very weird as we’ve never had any issue like this with any bank ever.

          • askbargain on 11/07/2024 - 21:34

            @WoodYouLikeSomeCash: the other possibility is your KYC details were not accurate. easier to close the account than try and rectify it.

            • WoodYouLikeSomeCash on 11/07/2024 - 21:35

              @askbargain: I think I used my drivers license to sign up so it would’ve been accurate. I’ve used the same identity details for my other accounts and those accounts have been fine which is weird.

              • askbargain on 11/07/2024 - 21:37

                @WoodYouLikeSomeCash: more so your tax residency status

                • WoodYouLikeSomeCash on 11/07/2024 - 21:37

                  @askbargain: I am only a tax resident of Australia (never been overseas) and Macquarie had my TFN.

                  • askbargain on 11/07/2024 - 21:43
                    +2

                    @WoodYouLikeSomeCash: don't beat yourself up over it. plenty of other banks have fee free international txs. however good thing about MQ is that you can open multiple transaction accounts (ages ago, not anymore I think) and get multiple debit cards. but their cards expire really quickly.

                    their marketplace has been getting worst and worst anyway.

                    • WoodYouLikeSomeCash on 11/07/2024 - 21:47

                      @askbargain: Looks like we will need to look elsewhere. The customer service was pretty disappointing as the agent kept going around in circles. When we asked the specific reason why he just said “I can’t discuss specifics and if you continue to ask the same question I’ll need to terminate this call”.

        • JIMB0 on 12/07/2024 - 08:25

          At least with ING they send a cheque for your remaining 2c.

  • Drakesy on 11/07/2024 - 21:30
    +7

    There's more to this than the OP is letting on to.

    Banks don't just close accounts and put money into super…

    What did Macquarie's T's & C's say.

    • WoodYouLikeSomeCash on 11/07/2024 - 21:31

      I wish I knew more but the customer service rep just kept saying they “cannot discuss it” as it was a “business decision”.

      The Ts and Cs for section 9 are very generalised and the rep wouldn’t tell us which part we allegedly broke as he “didn’t have the time” and “cannot discuss specific details”.

    • JIMB0 on 12/07/2024 - 08:30

      Banks close accounts all the time. ING closed mine after I stopped using them when the 50c cashout bonus ended. They didn't bat an eyelid when the account had $150k/year going into it and getting drawn out as cash.

  • SHIFT KEY BROKEN on 11/07/2024 - 22:20
    +15

    From the banks point of view: newly activated account gets a large cash deposit immediately followed by gift card issuance

    Perhaps this just lines up with a common fraud pattern? Bad guy gets access to someone’s bank account and then opens a Macquarie account (with stolen id) to convert funds into gift cards he can sell.

  • T-man on 11/07/2024 - 23:13
    +2

    How much did you lose? I don’t think they just closed your bank account for no reason; they just don’t tell you so you or others can’t game the system.

    If it is their business decision, try AFCA to get your money back and move on.

  • HardQuiz on 12/07/2024 - 06:55

    Can you tell us the amount transferred to MLC ?

    Is the Westpac account under your name or a joint account?

  • cnrmlj on 12/07/2024 - 07:44
    +2

    All sounds very weird.

    MLC is a wealth management brand and the superannuation and investments are now owned by Insignia so seems a bit odd that Macquarie would transfer money there unless it's a different MLC.

    Have you received a statement from MLC?

    Based on the weird information you have provided, i would be immediately raising a complaint.

    • WoodYouLikeSomeCash on 12/07/2024 - 08:00

      Yes, only the first person who we spoke to was able to give us information about the MLC transfer. The second person we spoke to said he cannot discuss anything and when we referenced what we were originally told he said “that person didn’t know what they were talking about”.

      No statement from MLC the money has essentially been taken I believe by Macquarie.

      • JIMB0 on 12/07/2024 - 08:33

        It will get eaten up by fees.

      • BigBirdy on 12/07/2024 - 10:24

        The ‘transfer to MLC super’ sounds like nonsense, so I’d be inclined to go with what that second person told you, ie the first person gave you wrong info, or you misunderstood them.

        So the question remains, where is your money? If this happened recently, you might get a cheque in the post. I’d also check your spam folder in case Macquarie has asked you to provide a bank account for settlement

  • JimmyF on 12/07/2024 - 08:40
    +7

    However, after we used the account (which I transferred part of my salary into to purchase an Apple gift card at a discounted rate for buying a new laptop) our online banking access was restricted.

    Oh my….. Even to me this screams fraud/scam alerts, putting in a large chunk of money and then taking it straight out as giftcards!

    As we had a remaining balance, we enquired where that money had gone to which they stated it had been transferred to a “MLC superannuation account”

    How much are we talking that was left over? a few 100, 1k, 10k, 100k?

    But that sounds very odd, if they think its fraud/scam account, you generally lose the money until you appeal and prove otherwise.

    Why would they move the money into a super account that is now locked away until you are retirement age? That would be a misuse of the funds.

    Macquarie Bank closed our transaction account. States it was due to a “business decision” and won’t tell us specifically why. Informs us they have transferred our money internally to an investment firm, “MLC”.

    They don't have to tell you why, generally banks won't tell you as people use this info to game the system. Same reason they won't tell you why you didn't get a credit card etc. So you don't know the steps get around it next time.

    If MB said oh you spent $5k on giftcards in the first 30 days, so flagged it. It tells the scammers to next time, only spend $4k in the first 30 days or wait longer etc so they don't get flagged and lose the account/money.

    So was the money moved to a superannuation account or a investment account? The later would seem more logical.

    • WoodYouLikeSomeCash on 12/07/2024 - 08:46
      -2

      It may have looked suspicious to Macquarie, however I’ve even offered to provide complete statements of the flow of money however they won’t even hear me out on this. Instead saying “I can’t discuss anything with you as the account is closed so I cannot identify you”.

      I believe there was around $1,000 left in the account. The initial support agent said the transaction said “MLC superannuation” although I do not have an account with them so I presume it was just sent to MLC’s investment wing.

      The only way I found out was by trying to login to online banking yesterday, so I would think Macquarie would at least provide some type of email, letter or text letting me know my account had been closed and my money transferred.

      • JimmyF on 12/07/2024 - 08:51
        +1

        It may have looked suspicious to Macquarie, however

        I'm not disagreeing, just saying that process flow does raise some flags for well known scammer patterns, so I could see why MB freaked out.

        Normally they would freeze the account and ask for proof etc like you provided.

        I believe there was around $1,000 left in the account. The initial support agent said the transaction said “MLC superannuation” although I do not have an account with them so I presume it was just sent to MLC’s investment wing.

        At least it wasn't too much left, you should be able to close the investment account and get the money back that way.

        so I would think Macquarie would at least provide some type of email, letter or text letting me know my account had been closed and my money transferred.

        Yes that part does seem all very strange. Maybe the letters are in the mail still?

        • WoodYouLikeSomeCash on 12/07/2024 - 23:49

          At least it wasn't too much left, you should be able to close the investment account and get the money back that way

          Unfortunately, I believe it has gone to Macquarie Bank’s account at MLC as I do not have an account with them.

          Yes that part does seem all very strange. Maybe the letters are in the mail still?

          The initial person we spoke to said the account had been closed in February so I don’t reckon they did send a letter.

  • gee-man on 12/07/2024 - 09:05
    +2

    Buying thousands of $ of gift cards triggers risk warnings on their side, especially with the pattern you described. It feels like Money Mule behaviour, even if it’s legit in this case.

    Sure, Ozbargainers are known to use gift cards this way but normal people generally do not - it’s like someone buying a human skull with a gold bar, it’s probably a thing that has happened before but doesn’t make it normal. And a Mac goes for between $1.5k-4K, so that’s a lot of risk.

    The bank also won’t tell you why because that info could be used by scammers etc to adjust their scams to circumvent their systems. Same goes for KYC/AML related stuff. They don’t have to and don’t want to tell you.

    ACFA will get all this info from the bank and will likely side with them. With a credit card product it’s effectively the banks money (even if you’ve pre-paid it) and any scam or fraud warnings will be taken seriously.

    • bamzero on 12/07/2024 - 16:37
      -1

      Whatever happened to innocent until proven guilty…

      • Baysew on 12/07/2024 - 18:36

        … has been replaced with shoot first and ask questions later.

      • gee-man on 13/07/2024 - 07:29
        +1

        The bank is not the government. They don’t care whether you’re innocent OR guilty, just that you’re a risk to their business.

        And that’s partly fair enough with the amount of scams happening these days.

        • bamzero on 13/07/2024 - 14:45

          True but the way they just shut it down, take your money then wipe their hands of it without any giving any reason or chance to resolve the issue aint right.
          I guess thats where AFCA steps in but it shouldn't have to come to that.

  • isthisreallife22 on 12/07/2024 - 09:07
    +1

    You could try the Macquarie complaints process as well - mention that you'll be going to AFCA. Their complaints process might be able to open doors that you couldnt get to via contact centre

  • randomusername2017 on 12/07/2024 - 10:02

    MLC = Money Launderer Caught

  • Chriscairns on 12/07/2024 - 10:42
    +4

    I had won a case against St. George group through AFCA complaint which resolved under 40days… The bank will chase you to resolve if you have enough proofs. Received $5000 as compensation. Issue was with a mortgage account.
    Raise a ticket with AFCA…

  • jugsy on 12/07/2024 - 11:30
    +2

    I can't believe ADAGCHS isn't here yet

  • Loopholio on 12/07/2024 - 11:41
    +1

    @WoodYouLikeSomeCash if you do go to AFCA please let us know what happens.

    • WoodYouLikeSomeCash on 12/07/2024 - 13:39
      +3

      We’ve gone ahead and lodged a complaint via Macquarie and will try and start there. I’ll keep you guys updated along the way including the resolution.

      • Loopholio on 12/07/2024 - 13:47

        Thank you :)

  • bamzero on 12/07/2024 - 16:36
    +1

    This is why we'll all be screwed once everything is completely cashless.

    Hope you get a good result.

    • askbargain on 12/07/2024 - 17:10

      because the government won't put in new legislations :/

      • bamzero on 12/07/2024 - 17:53

        course not, its only ever going to be in their favour to have complete control of our funds.

    • WoodYouLikeSomeCash on 13/07/2024 - 00:27

      What was particularly concerning is that Macquarie Bank wouldn’t even tell me the exact figure that was in the account. They said the funds were transferred to MLC and the current balance is $0. They also won’t provide a bank statement to me so it is particularly difficult to prove the exact funds that were in the account.

  • WoodYouLikeSomeCash on 12/07/2024 - 23:52
    +3

    I got an update today.

    I received a reply in relation to my complaint at Macquarie Bank:

    Dear [WYLSC],

    We can confirm that the business decision has been made to close your account with Macquarie Bank Limited. We confirm that this decision was not made by an individual person, and we will not be changing the outcome of this decision.

    We are unable to provide the specific reason for this decision. For further information on this please refer to Section 9 of the Macquarie Transaction and Savings accounts Terms and Conditions, which can be found on our website here.

    We trust this has addressed your concerns.

    Have gone ahead and lodged a complaint straight to AFCA and will report on how this goes.

    • BigBirdy on 13/07/2024 - 10:09

      Did they say where your remaining money has gone?

    • SHIFT KEY BROKEN on 13/07/2024 - 10:27

      The complaint response reads like you were only asking for an explanation of why the account was closed. They're not going to give a reason because that would give you something to dispute. I think you have to accept that Macquarie doesn't want you as a customer, for whatever reason.

      If I were in your situation, I'd be making sure the complaint clearly asks for:

      • statement of account showing transactions from opening the account to it being closed
      • final balance being returned
      • WoodYouLikeSomeCash on 13/07/2024 - 10:29

        Yes, when I was on the phone I asked about the balance and for a statement but they said they can’t as they cannot identify me due to the account being closed so therefore cannot discuss anything.

        I think the complaint reply was rather generic as it didn’t even talk about the funds in the account.

    • JimmyF on 13/07/2024 - 14:10

      I received a reply in relation to my complaint at Macquarie Bank:

      They won't tell you why, so no point in going on about this point anymore with them.

      The best you can request is chasing up your funds that remained and how to access them.

      So if it was me, I would reply to them and acknowledge the account has been closed and for them to now return any the funds that had remained in the account to you via cheque to your registered address or to xyz banking details.

  • lainey13 on 15/07/2024 - 17:37

    Did they charge you the annual fee yet?

    • WoodYouLikeSomeCash on 15/07/2024 - 17:39

      It was a debit card account which I think has no fees.

  • WoodYouLikeSomeCash on 02/08/2024 - 00:17
    +1

    Received their final response via AFCA. Have obviously gone ahead and declined so it says it’ll be 11 weeks for a case manager to be assigned.

    We acknowledge your concerns regarding not being advised the reasons for the decision to close your account; however, we maintain the position provided in our IDR response that we do not agree to disclose further information. We confirm that a decision was made by the business to close your account, and this decision was made in line with section 9.3 of the Macquarie Transaction and Savings accounts terms and conditions. This decision cannot be reversed and therefore, your account will remain closed.

    For your reference, we provide the relevant excerpts below from the conditions outlined online:

    9.3 Closing your Account or cancelling your Card
    You can close your Account through Online Banking or Mobile Banking. You can contact us at any time to cancel your Card.

    We may, in our reasonable discretion, require all Account holders to provide instructions to close a joint Account. Before we agree to close your Account, you must pay any amount which may be owing to us.

    We may close your Account or cancel your Card:

    • if you have not used or made any transactions on your Account or Card in the last 6 months and the account has a nil balance
    • if you have not used your Account or Card within the first 30 days from Account opening
    • if the balance of your account becomes subject to unclaimed monies requirements
    • for any of the reasons set out in section 9.2 (Stopping your Account) above or section 3.1 (Who can open an Account?), or
    • for any other reason we reasonably consider appropriate.

    We will act reasonably in relation to any decision to close an Account or cancel a Card, and in accordance with applicable laws and industry codes.

    In your AFCA submission, you noted that MBL failed to meet its obligations under the Banking Code of Conduct and Corporations Act 2001. We do not agree with your assertions that MBL failed to meet its obligations in relation to your account closure.

    We thank you for allowing us the opportunity to review and respond to your concerns. We will notify AFCA of our response.

  • WoodYouLikeSomeCash on 28/08/2024 - 16:07

    Update 28th August

    • Received a voluntary settlement offer from Macquarie Bank.
    • Was advised to accept as the ombudsman doesn’t have the power to compel Macquarie Bank to re-open the account.
    • JIMB0 on 29/08/2024 - 09:04

      How much $.

      • WoodYouLikeSomeCash on 29/08/2024 - 09:52

        Money owed + about $100 compensation. Not sure whether to accept or to continue progressing the case as I've been advised AFCA can't compel MBL to re-open the account.

        • JIMB0 on 29/08/2024 - 13:52

          Unless you're going to play the discrimination card I'd take the money and run.

        • T-man on 29/08/2024 - 14:37

          The offer means "take the money and shut your mouth off."

          If AFCA can't do anything, you'll just have to accept the money and take your business elsewhere.

  • WoodYouLikeSomeCash on 07/09/2024 - 23:38
    +5

    Update 7th September

    • Decided to reject the offer from Macquarie and the case progressed to case management.
    • Macquarie provided a new response admitting a remedy is required for the account closure.
    • Macquarie state they still cannot re-open the account.
    • They’ve (AFCA) asked me to name a figure that I believe is fair up to $6,400.
    • We finally received a bank statement which clearly shows Macquarie did transfer the money without our permission to a “MIML Super”

    They also said they’ve provided more information about the account closure to AFCA but it cannot be referenced, discussed or viewed by me as it is “commercially sensitive”.

    • YesPleaseThankYou on 08/09/2024 - 12:19

      I'm not across all of the details, and correct me if I'm wrong, but in your view did Macquarie Bank close your account to hide internal fraud or other security failing from you?

    • movieman on 12/10/2024 - 19:51

      Name your figure then.

      Get paid out.

      Move on.

      Sadly, it's too common with Macquarie bank.

  • diazepam on 09/10/2024 - 00:44
    +3

    Had a recent similar situation, and I had no idea MQ closed my account. Annoying because I had wanted to use MQ bank for my overseas travels which I had to use a different card for.

    History goes - I transferred a starting fund of few thousand from X bank (won't name as I don't think X bank did anything wrong) onto my MQ account in Dec 2023. Been using the MQ solely for international purchases so I left the money on it. I did once attempt to buy crypto currency at the start of 2024 (many transactions prior to this) but this transaction was declined and I never attempted it again.

    Suddenly, X bank would not let me log in ~ Sep 2024, I called X bank who informed me a transfer from X bank to MQ bank was flagged as fraudulent (from the end of last year!) and to undo this flag I need my MQ details to prove I did this transaction. Tried logging into MQ bank where I realised my access was also restricted. This was quite stressful, I have mortgages + credit cards to pay and thankfully none of them were due at the time.

    X bank refused to tell me anything more, but I get the feeling they were not fully aware of the situation.
    MQ bank kept telling me commercial decision and refused to tell me anything more.
    I also had a similar run around to @WoodYouLikeSomeCash
    Unable to provide any details given closed account. I'm lucky the statements were still on my laptop from previous downloads so I could find the account information X bank needed to prove that it was me who did that transaction almost a year ago.

    ACFA complaint similar to @WoodYouLikeSomeCash ACFA tell me that they are bound by the MQ T&Cs and they cannot force MQ to reopen account. My money thankfully remained in my account, which I had to fill in some stupid form and provide photo ID to withdraw. I took the settlement given the circumstances - MQ was adamant they would not reopen the account nor provide any further information. They argued that they did not breach their own T&Cs and even if there was a financial loss due to their actions temporarily locking my other bank's account, it was within their right to close my account.

    I'm glad that I cost MQ some 2k for the complaint. They're absolute scum.
    I'm tempted to open another account and leave <$100 in it just to be annoying.

  • Ikz on 23/10/2024 - 16:29
    +4

    MQ suddenly closed account which had money still in it, on calls they caused a lot of ruckus and said they wouldn't change their decision, they gave conflicting advice on how to get the money back even saying I'd have to recall through the other bank which could take weeks, once AFCA complaint was put on the table, somehow they removed all restrictions on the account and I was able to get my money back. It is sad that it takes all that for them to do the right thing.

    • movieman on 24/10/2024 - 17:50
      +2

      Just make sure with your AFCA complaint that MQ needs to leave some $$$ to make up for your issues!

  • bigpallooka on 24/10/2024 - 20:56
    +2

    This sounds to me like MQ have invested heavily in a automated predictive software based (AI?) solution for fraud management and can't back out despite the stuff-ups. They would rather cough up the occasional compensation and admit to nothing to ensure the systems secrecy.

    • YesPleaseThankYou on 24/10/2024 - 21:15

      It would not surprise me if the above is true.

  • mcadams on 04/11/2024 - 01:14

    My account was closed by Macquarie years ago.

    1. Opened the account
    2. Deposited money
    3. After a week, deposited $300 to Binance
    4. Next day, account closed.

    Macquarie refused to tell me why, was evident why.

    They held my money for 6 months, was only about $200 in the account for a Telstra direct debit, I was later compensated $500 as it took it to AFCA.

    Just seems by reading the webs that Macquarie hates anything close to sounding or appearing dodgy and I’ve been in this case using crypto for years through my account with Westpac, never an issue.

    Macquarie is lackluster and I doubt I’ll ever see the ability to open an account there again, I assume at best once your debanked it’s for good.

    • T-man on 08/11/2024 - 00:22
      -1

      Back in the day, I used their account for all my crypto transactions, and they restricted my account once. I had to call them, mentioned crypto transactions, and they lifted the restriction on my account.

      • mcadams on 11/11/2024 - 19:37

        They didn’t do that for me sadly. They said nothing can be done. It’s was a new account for me, I was shifting my bank to Macquarie; was put on hold as soon as I did a small transfer.

  • asrey1975 on 06/11/2024 - 12:12

    Had a Macquarie account for an SMSF.
    After a few years of using the account, they asked us to re-verify all our ID documents again.
    I said that it was like setting up our account all over again and it wasn't straight forward as we had to involve our accountant and pay extra fees for the accountant to assist just for this ID verification & background request from the bank.
    We closed the SMSF account and move to another bank. Did not have to jump those same hoops with the other bank.

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