Sydney Bank makes $4.6 Million Mistake, Student Spends It

Australian student Christine Jiaxin Lee withdraws $4.3 million after bank makes overdraft error

About $1 million has been recovered but the rest was spent on luxury items, police say

The Associated Press Posted: May 06, 2016 11:34 AM ET

A Malaysian student has been charged in a Sydney court with dishonesty offenses after a bank accidentally gave her a $4.6 million Australian ($4.3 million Cdn) overdraft four years ago.
Waverley Local Court was told on Thursday that Christine Jiaxin Lee was 17 years old and had been living in Sydney for a year when Westpac Banking Corp. made the expensive mistake in 2012.
She was arrested at Sydney Airport on Wednesday night as she tried to fly to Malaysia still owing $3.3 million Australian (more than $3 million Canadian) spent on what her lawyer described as luxury items including handbags. The rest of the money had been recovered.
The 21-year-old chemical engineering student was released on bail.
The Associated Press, 2016
 

eddie wrote:Im pretty sure that there's a law of some sort, that says if a bank puts money in your account - error or no - it's yours to keep?

Original Quill wrote:

eddie wrote:Im pretty sure that there's a law of some sort, that says if a bank puts money in your account - error or no - it's yours to keep?

Quite the opposite.  If you knowingly take money that doesn't belong to you, it's theft.

Original Quill wrote:

eddie wrote:Im pretty sure that there's a law of some sort, that says if a bank puts money in your account - error or no - it's yours to keep?

Quite the opposite.  If you knowingly take money that doesn't belong to you, it's theft.

When to Report an Error

• As soon as you discover an error in your bank account, notify your bank. Start with a phone call to the manager of your bank branch, but follow up with a written notice and include all the details about the error and your account. The sooner you notify bank management of the error, the more easily the error can be traced and corrected. According to the U.S. Department of the Treasury’s Office of the Comptroller of the Currency, most banks require you to notify them of any errors within 30 days of you receiving your statement, though that can vary by bank or state. The deposit account agreement you signed when you opened your account spells out your bank’s rules for reporting errors. If the error involved an ATM deposit or withdrawal or other electronic funds transfer, you have 60 days from the date of your statement to report an error.
  

If the Bank Doesn't Respond

• Most of the time, your bank will correct an error promptly. The bank has 10 days to correct an error involving an electronic funds transfer, but, according to the Office of the Comptroller of the Currency, there is no set time period for a bank to correct an error involving a written check. Sometimes you’ll have to work a little harder. For instance, if you don’t have proof that the bank was in the wrong, such as an ATM receipt, you might face resistance from a bank employee. If speaking to someone higher up the chain of command doesn’t solve the problem, you have the right to file a complaint with the federal agency that oversees your bank. The Office of the Comptroller of the Currency oversees federal banks, while the Federal Reserve looks after state-chartered banks. These agencies will investigate your claim for you.
  

Error in Your Favor

• If your bank makes an error in your favor, you might be tempted to keep quiet about it. But just because your bank mistakenly deposited an extra $10, $100 or $1,000 in your account doesn’t mean the money is legally yours. Even if you don’t point out the error, the bank conducts regular audits of its account to catch these kinds of mistakes, and the bank will take the money out of your account. If you don’t repay the windfall, you could face criminal charges for theft. Avoid this and point out any bank errors, whether they’re in your favor or not.
  

Tips for Reporting Errors

• Keep a record of everyone you speak to regarding the bank error, including their name, the date and what was discussed. Make copies of any receipts or other documentation before you hand them over to the bank. Ask for a timeline for the error to be investigated and follow up if you haven’t received an answer by that date. If the error involves a debit or credit card, report any errors in writing.
  http://www.ehow.com/how_2108554_handle-bank-error.html
  
  

eddie wrote:

Original Quill wrote:

Quite the opposite.  If you knowingly take money that doesn't belong to you, it's theft.

Read my above post and what happened to me
I tried to give it back!

sassy wrote:How on earth did she manage to spend $3.3 !

sassy wrote:How on earth did she manage to spend $3.3 !

eddie wrote:

Original Quill wrote:

Quite the opposite.  If you knowingly take money that doesn't belong to you, it's theft.

Read my above post and what happened to me
I tried to give it back!

eddie wrote:No quill it was a credit card.
And of course they have a "balance" otherwise how would you know what you owe?

That's why I knew it wasn't my money as I had paid off my credit card and had zero BALANCE.
Am I not explaining it right?
Third time lucky.

What Is a Credit Balance? A credit balance occurs when your account has a balance that is owed to you, rather than a balance you owe to the credit card company. This can occur when you return merchandise or pay more than you currently owe on your credit card.
What Can I Do If I Have a Credit Balance? If you have a credit balance on your credit card, you may be able to: Keep the credit on your account and apply it towards future charges Request a refund When your credit balance is less than one dollar, the credit card company is not required to send you a refund, even if you request one. If the credit balance remains on your account for more than six months, the credit card company must make a good faith attempt to refund it to you.
How Do I Request a Refund? Most credit card companies will send you a refund if you simply call them up and ask for a check to be sent to you. Your other option is to write a letter to your credit card issuer, addressed to their correspondence address (not their payment address), and request a refund check be sent to you. How Long
Will It Take for Me to Receive My Credit Balance Refund Check? Generally, you will receive a check within 10 business days. If you request a refund check by mail, your credit card company is required, by law, to mail it to you within seven business days of receipt of your letter. If you have a large credit balance, the credit card company may take extra time to verify why there is such a large credit before issuing the check.
What If the Credit Balance Is Due to an Error? Occasionally, a credit balance will appear on your account because of a credit card company error. This can be caused by many things, including: The credit card company erroneously applying your payment more than once A merchant credit was erroneously posted twice Another cardholder's payment was applied to your credit card account If the credit card company erroneously applied your check, and the money was deducted from your checking account for more than you paid, the credit card company may wire the overpayment back to your bank account. - See more at: http://www.legalmatch.com/law-library/article/credit-card-refund-of-credit-balances.html#sthash.PpsRKJ2n.dpuf

eddie wrote:4ever they repeatedly told me that they couldn't trace it. Im not keen on the bank anyway and got rid of the credit card a couple years ago due to their basic crappyness in general.

I had the thought that it could well have been me that had paid amounts off my credit card and it went into the wrong account.....and they wouldn't be able to trace it back to me??

It was either me spend it or it would literally have sat in my credit card balance forever!

eddie wrote:No quill it was a credit card.
And of course they have a "balance" otherwise how would you know what you owe?

That's why I knew it wasn't my money as I had paid off my credit card and had zero BALANCE.

Am I not explaining it right?
Third time lucky.

4EVER2 wrote:

eddie wrote:4ever they repeatedly told me that they couldn't trace it. Im not keen on the bank anyway and got rid of the credit card a couple years ago due to their basic crappyness in general.

I had the thought that it could well have been me that had paid amounts off my credit card and it went into the wrong account.....and they wouldn't be able to trace it back to me??

It was either me spend it or it would literally have sat in my credit card balance forever!

"4ever they repeatedly told me that they couldn't trace it." 

And that is what a lame customer service person that doesn't KNOW will say, and is just trying to get rid of the phone call. 
There isn't any posted Accounts Receivable transaction that comes into any bank/credit card institution that doesn't have a paper trail - the information on that will list the name/vendor/business that generated the refund or personal checking account that sent in the payment---it's just how our computerized accounting systems work.
But protect yourself in all such situations and document titles/names of the people that you speak too and when in doubt - ask for their proper name spelling - then ask for their supervisor IN CHARGE; that always sets them back a tad bit.

4EVER2 wrote:No...Quill; you really ought to read some posts betwixt and between the last time you dropped in here...this has all been covered!  Yes, and in quotations;
a.) Eddie could have paid her own credit statement twice or 3 times or even 4 times in error not knowing that the -250. meant it was a CREDIT {loads of elderly mistake that} but Eddie isn't elderly
b.) there was a payment from a transposed account number that got posted into her account my mistake
c.) or a retail credit that was misapplied - and misapplied and misapplied yet again numerous times for the exact same amount! Someone got screwed; either the merchant or the real card holder or both...and that's just wrong!

C.) seems the logical explanation to my accounting knowledge but the lame inexcusable reasoning of her credit card company: "we can't trace it so just spend it"--- is beyond legal and responsible accounting protocol...and not something that anyone with supervisory skills would still be holding a position!

eddie wrote:Quill you don't read posts and it's exasperating!

I did close the account and this all happened about seven or eight years ago.

They TOLD ME that it would just sit as a credit on my card as they couldn't take it back because they had "nowhere to put it"

eddie wrote:Well it wasn't a problem. I got £750 for nothing but the credit card company were crap, and after that mistake I knew it could very well happen if I paid money in.

Original Quill wrote:

4EVER2 wrote:No...Quill; you really ought to read some posts betwixt and between the last time you dropped in here...this has all been covered!  Yes, and in quotations;
a.) Eddie could have paid her own credit statement twice or 3 times or even 4 times in error not knowing that the -250. meant it was a CREDIT {loads of elderly mistake that} but Eddie isn't elderly
b.) there was a payment from a transposed account number that got posted into her account my mistake
c.) or a retail credit that was misapplied - and misapplied and misapplied yet again numerous times for the exact same amount! Someone got screwed; either the merchant or the real card holder or both...and that's just wrong!

C.) seems the logical explanation to my accounting knowledge but the lame inexcusable reasoning of her credit card company: "we can't trace it so just spend it"--- is beyond legal and responsible accounting protocol...and not something that anyone with supervisory skills would still be holding a position!

Do follow your own advice and take the time to read what I have said.
My best advice is to close the account; that will shake everything out, as the bank will have to account for the entire history of the account at such time.  You don't need the specific account, and you can always get another credit card.

eddie wrote:I've googled what happened to me and can't even find anything for it!?

I can see 'overpaid money into bank account' but not 'overpaid money into credit card account' or similar

eddie wrote:I think it's a case of someone paying off their credit card which had a similar card number to me but oddly, they didn't miss the money or they didn't keep proof of payment.

4EVER2 wrote:

eddie wrote:No quill it was a credit card.
And of course they have a "balance" otherwise how would you know what you owe?

That's why I knew it wasn't my money as I had paid off my credit card and had zero BALANCE.
Am I not explaining it right?
Third time lucky.

Posting payments &/or refunds into our credit card accounts is still one of those jobs that is done by a human hand and this can be prone to human error; transposing numbers of the account that paid the balance due or the refund that was owed.
And as obvious as the amount was {as you stated...it was the same exact amount several months in a row} that there is a retail refund being sent for a customer waiting for their refund but it's being applied to your account.  Your credit card company could very well research that posted information and track that back to the retail store for verification --- it's on them to do the leg work {paper trail} but I'd not hang on to any of those ill gotten gains without: documents of - dates - names - times of the personal & their specific titles to whom I spoke with within that credit card company. CYA - cover your arse...

What Is a Credit Balance? A credit balance occurs when your account has a balance that is owed to you, rather than a balance you owe to the credit card company. This can occur when you return merchandise or pay more than you currently owe on your credit card.
What Can I Do If I Have a Credit Balance? If you have a credit balance on your credit card, you may be able to: Keep the credit on your account and apply it towards future charges Request a refund When your credit balance is less than one dollar, the credit card company is not required to send you a refund, even if you request one. If the credit balance remains on your account for more than six months, the credit card company must make a good faith attempt to refund it to you.
How Do I Request a Refund? Most credit card companies will send you a refund if you simply call them up and ask for a check to be sent to you. Your other option is to write a letter to your credit card issuer, addressed to their correspondence address (not their payment address), and request a refund check be sent to you. How Long
Will It Take for Me to Receive My Credit Balance Refund Check? Generally, you will receive a check within 10 business days. If you request a refund check by mail, your credit card company is required, by law, to mail it to you within seven business days of receipt of your letter. If you have a large credit balance, the credit card company may take extra time to verify why there is such a large credit before issuing the check.
What If the Credit Balance Is Due to an Error? Occasionally, a credit balance will appear on your account because of a credit card company error. This can be caused by many things, including: The credit card company erroneously applying your payment more than once A merchant credit was erroneously posted twice Another cardholder's payment was applied to your credit card account If the credit card company erroneously applied your check, and the money was deducted from your checking account for more than you paid, the credit card company may wire the overpayment back to your bank account. - See more at: http://www.legalmatch.com/law-library/article/credit-card-refund-of-credit-balances.html#sthash.PpsRKJ2n.dpuf

As some credit cards get older and the raised numbers become worn they don't always scan correctly and once used at the register the card holder might not know that her card isn't reading all of the numbers as clearly as it once was --- this happens quite often with the elderly - or they'll put their credit cards into their purses beside something magnetic and it will REALLY mess with the back of the credit card strip.

eddie wrote:Yes I did see it but kept having to explain stuff to quill.