Bank failed to maintain stop on joint accounts

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Summary:

In November 2024, Suzanne contacted the bank to put a stop on the joint accounts she had with her former partner. In August 2025, the bank mistakenly removed the stop while processing arrears payments from their joint account to the home loan. The bank reinstated the stop in October 2025, and two months later the bank corrected the authority on their accounts in line with the account mandate, which required both of them to authorise transactions. Suzanne said the stop was an essential safeguard to protect her financial position and ensure mortgage payments could continue. She complained after her former partner withdrew money without her authority.

Published:

August 2026

Our investigation

The bank accepted that a staff member wrongly removed the stop and failed to follow its internal processes. We found the bank failed to exercise reasonable care and skill when it removed the stop without the required authority. That authority could have been either the agreement of both account holders or a court order.

Suzanne’s former partner withdrew $765 from the joint account over the following two months. The bank refunded that amount, reinstated the stop, set up a two-to-sign authorisation and apologised to Suzanne. The bank later increased its offer to $3,000.

The bank confirmed the stop allowed only home loan payments from the account. It also confirmed the joint accounts required both account holders to approve transactions. We found these safeguards reduced the risk of a repeat of the same mistake. The bank had also reviewed the breach of process, and coached the staff member concerned.