Theft leaves bitter cash card taste

By MATHEW DEARNALEY

At age 81, Betty Peters did not want an automatic banking card. But her bank was persuasive.

Now it refuses to cover $6000 siphoned from her account by a thief who took her wallet, which held her card and pin number.

She struggles to comprehend how the bank - which once took care to ensure she crossed every 't' in her name before handing out her money - was unable to stop the thief draining almost $11,000 in five days from her modest life savings.

WestpacTrust refunded $4800 paid across its counters on cheques stolen in February with her wallet and cash card, accepting the blame for handing out money to the wrong person.

But it denies responsibility for $6000 in cash machine withdrawals, saying Mrs Peters should never have kept her personal identification number (PIN) in the wallet.

The thief is believed to have wandered into her home while tradespeople were working at another flat in the building.

Mrs Peters, who has banked with WestpacTrust or its predecessors for more than 40 years, was a reluctant conscript to electronic banking. "I didn't want a PIN number - no thanks."

But the bank persuaded her with the prospect of interest earnings to supplement her pension.

She agreed to open a cheque account with a cash card and hold at least $5000.

Unfortunately, she kept her PIN in the wallet to show to a helper needed to guide her through cash withdrawals because of her failing eyesight.

"They said, 'Don't keep the PIN and card together' - so I kept them in different parts of my wallet."

Mrs Peters' plight has appalled her next-door neighbour.

Mark Winger, a lawyer, said no bank should encourage elderly customers to keep so much money in an easy-access cheque account while lacking systems to prevent raids by fraudsters.

"Where is the duty of care?

"Westpac might want to close branches to save money to export to shareholders overseas, but if it does there should be an obligation to provide safe and sensible banking solutions - particularly for senior citizens."

WestpacTrust spokeswoman Jane Anderson said she sympathised with Mrs Peters but it was up to customers not to disclose PIN numbers to anyone.

"While the bank has a responsibility to make sure it only pays out to the right person, it is up to customers to make sure they don't disclose their numbers."

But Mr Winger says his neighbour needs "cash not sympathy" and hopes a complaint to the Ombudsman may prod the bank into changing its mind.

The banks - a Herald series

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