Protection of customer payments 103-04050000

Amy checks her bank account and realises that her income support payment of $200 (which is usually in her account today) has not been received.

Amy approaches the agency to find out why her payment has not been received. A Service Officer lets Amy know that her payment was paid to her account and that she will need to contact her bank to check what has occurred.

Amy approaches her bank and finds out that she overdrew her account by $300 and her payment was used to repay the overdrawn amount. Amy’s bank disputes her entitlement to the money and indicates that they will not release her income support payment.

Amy contacts the agency again to see if anything can be done, as she now has no money for this fortnight. The Service Officer:

• tells Amy that the agency has an agreement with certain banks to make sure that if a customer overdraws their account, they can keep at least 90% of their payment in a given pay period
• checks that Amy’s bank is a member bank of those associations included in the Code and that her payment is also covered
• suggests that Amy contact her bank and ask for help with getting protection of her payment under the Code of Operation
• lets Amy know that, if needed, with her consent, they will contact her bank to discuss the return of 90% of her payment, as per the Code

With Amy present to provide consent, the Service Officer calls the bank on Amy’s behalf, discusses the Code and organises an appointment for Amy to negotiate a repayment plan. The Service Officer advises Amy of the result of the discussions.

Amy receives access to $180 of her payment with $20 used to partly repay the money she owes. Each time Amy receives her income support payment 10% or $20 will be removed to repay her debt.

John has his payment of $598 paid to his bank on Tuesday. When he goes to withdraw the funds, he only has $50 available.

When he contacts his bank, he is advised that due to an outstanding debt to Fred’s Motor Repairs, a garnishee order for $548 was placed against his account. As soon as the money was paid into the account, it was recovered and sent to repay the debt.

John would need to negotiate repayment of some of the funds with the organisation he owes the money to: Fred’s Motor Repairs.