A 26-year-old worker says she has been cut off from her own money after Up Bank froze her account without warning and directed her to seek help through Centrelink.
Zoe Graham claims the digital bank placed a hold on her funds while investigating a disputed transaction.
About four months ago, Ms Graham sold a rare book online for $90. The buyer later alleged the item had never arrived, leading to claims that Ms Graham had acted as a scammer.
Up Bank told her it could not offer financial assistance while the investigation remained open, instead advising her to contact support and welfare services.
The charity worker said the account was frozen just after she had been paid, leaving her unable to access “every single cent I own right now”. She also warned that the review could take several weeks.
“Approximately a four week wait time. How is this legal?” she told Daily Mail.
“Up is the worst, most patronising customer service I’ve ever dealt with. They won’t help me and keep repeating that the investigation is under way.”
“They advise that the only way to dissolve the claim is to contact the buyer … but I cannot after many failed attempts.”
Zoe Graham (pictured) says Up Bank froze her account without warning
Up Bank, Bendigo Bank’s youth-focused digital banking brand, launched as a mobile-only app in 2018 and is led by Xavier Shay (pictured)
The bank advised Ms Graham to seek emergency assistance through Centrelink and AskIzzy, a service that connects people with food, accommodation and financial support.
However, Ms Graham said she was “most definitely not eligible for Centrelink or AskIzzy resources”.
‘I work full time…but I certainly still have bills to pay and no way to pay them.’
In messages to Ms Graham, only sent after she realised on Friday she could not use the funds in her account, Up Bank said restrictions had been placed on her account while its team conducted an account review.
‘This means you won’t be able to make purchases or send payments. Your incoming payments will be impacted during this time,’ the bank wrote.
‘These reviews typically take up to 4 weeks to complete. We’ve already escalated your case to our specialist team, who will reach out directly with further information.’
The bank later advised it could not offer financial assistance directly but suggested she seek external support services.
‘While we aren’t able to provide financial assistance directly, I do want to make sure you have access to some helpful resources who can provide the support you need and deserve,’ the message read.
The first message UP Bank sent to Zoe Graham after freezing her account
When Ms Graham queried the frozen account she received information on crisis support
‘AskIzzy is a great tool to find local organisations that can help with financial assistance, emergency accommodation and access to food and other necessities.
‘Centrelink also provide crisis payments for those in need of extra support.’
Ms Graham said she had supplied the customer’s information and tracking details to the bank to try and resolve the dispute, but remained locked out of her funds.
‘I have provided all the tracking information and her details to show where it went to but Up won’t budge,’ she said.
‘(They) have told me I have to contact her but I cannot. I’m blocked.’
In a follow-up message, the bank said it had an ‘obligation to act on reports received from other institutions’ and that payments to Ms Graham’s account had been flagged by alerts from other banks.
‘Due to the above, your account is under investigation and we’ve placed restrictions on your account preventing debits and credits until the investigation is complete,’ the message read.
After freezing her account, UP Bank referred Zoe Graham to Centrelink (pictured) if she needed crisis payments (stock image)
Ms Graham said she had also been advised not to open an account with another bank while the investigation is ongoing.
Up Bank, Bendigo Bank’s youth-focused digital banking brand, launched as a mobile-only app in 2018 and is headed by Xavier Shay.
Ms Graham is not alone, with several other Up Bank customers leaving one-star reviews claiming they were also frozen out of their accounts.
‘Had my account cancelled without any prior notice or anything due to breaking their terms and conditions with a transaction that they deemed suspicious when it was just a normal transaction,’ one wrote.
‘Locked my funds behind a ID verification that never gets accepted.’
‘One day, they put my account on hold,’ another added.
‘All my payments/Centrelink were going in there. They said they would need to do an investigation and until then had my funds on hold also said it could take up to six weeks.
‘Gave me some wishy washy story and advice about food banks and getting help from Salvos. No I didn’t need Salvos, or a couch or mattress to sleep on, I wanted access to my own money to buy food, or alcohol or cigarettes if I wanted to.’
Ms Graham said she intended to lodge a complaint with the Australian Financial Complaints Authority.
‘The fact that they’ve done this with no call to me is absolutely disgusting,’ she said.
Bendigo and Adelaide Bank, which owns Up Bank, has been contacted for comment.
