Fri, 12 Nov 2004
HOW NOT TO ARGUE WITH A BANKImpressive behaviour from the Commonwealth Bank to keep in mind before you every try any of their products.
Though also shows a textbook example of how not to go about a dispute with a large financial organisation.
Bernard Madigan is desperate. Last month he was served a bankruptcy notice by his former bank, the Commonwealth. He has the choice of paying it $117,534.33 or being bankrupted. Bankruptcy is not a rare event in banking land. In this case, however, the debt was run up in exceptional circumstances. Madigan paid off his mortgage with the bank five years ago and closed his account. He made his final payment of $752.87 on the mortgage in October 1999, and was given a mortgage discharge authority. He closed his account with the bank on November 10, 1999. On November 16, he applied for court orders compelling the bank to surrender the certificate of title to his Ermington, Sydney, house. The return of the certificate was ordered. Then he found that the day before this happened, five days after he closed his account, the bank debited his account with $65. Madigan was livid and demanded to know how a closed account could be reopened, on whose authority and why the fee was charged.