Bank's Treatment of Perth Couple Leaves Them "Debanked" and on the Brink of Bankruptcy

Strategic Insights -

Nadia Mitsopoulos and Sue Peacock, 720, ABC Radio Perth, 720 Perth, bankwest, commonwealth bank, michael alford, money laundering, bank reported on a disturbing case of a Perth couple, Michael Alford and his wife, who have been struggling to understand mysterious transactions on their bank accounts. Despite their efforts to resolve the issue with their bank, Bankwest (now owned by Commonwealth Bank), they have been left debanked and on the verge of bankruptcy.

Key Takeaways:

  • Michael Alford, a Perth man, had two successful businesses in mining communications and GPS tracking but noticed strange transactions on his bank statements in 2018.
  • Unexplained withdrawals continued, and by 2021, the couple had had enough, deciding to pack up and move away to set up a new life.
  • The bank's treatment had left the couple effectively "debanked" as a result of the unexplained transactions, which may have been flagged as potential fraud or money laundering.
  • Formal requests to the bank for more detailed information and statements have been unsuccessful, despite repeated requests.
  • The couple's online banking account showed a $12 million deposit in January this year, but the money was "held elsewhere," with no explanation or assistance from the bank.
  • Michael Alford has reported his problems to the police, the Australian Taxation Office, the Australian Financial Complaints Authority (AFCA), and Austrac, the Australian Transaction Reports and Analysis Centre, without success.
  • The couple estimates they have lost several million dollars over the years and has now engaged a lawyer for assistance to clear their name and get their money back.
  • John Hammond, the Alfords' solicitor, described the bank's treatment as "oppressive and unconscionable," adding that there would be a full-scale investigation if similar conduct was carried out by any other business.

Statistics:

  • Over 600 transactions on Michael Alford's bank accounts cannot be adjusted or accounted for.
  • The couple has been asking for more detailed information and statements since 2021 without success.
  • A $12 million deposit appeared on the couple's online banking account in January this year, but the money is "held elsewhere."
  • Several million dollars have been lost by the couple over the years.

Sources:

  • Nadia Mitsopoulos and Sue Peacock, 720, ABC Radio Perth, 720 Perth, bankwest, commonwealth bank, michael alford, money laundering, bank
  • John Hammond, the Alfords' solicitor, "The bank's treatment of the Alfords is oppressive and unconscionable."
  • BankWest spokesperson, in a statement, "We take these matters very seriously. We have been in regular engagement with the customer and are currently looking into a number of the claims made in the ABC report."