Aussie is locked out of her bank account without warning and told to go to Centrelink for support: ‘How is this legal?’

A young worker claims she has been left without access to her own money after her bank froze her account without warning and told her to seek support from Centrelink. 

Zoe Graham, 26, said Up Bank has put a hold on her funds as it launches an investigation into a disputed transaction.

She sold a rare book online for $90 about four months ago, but the customer claimed they never received it, prompting accusations Ms Graham was a scammer. 

The online bank told Ms Graham it could not provide financial assistance while her account was under review, but suggested she contact support and welfare services. 

The 26-year-old charity worker said she had just been paid and was locked out of ‘every single cent I own right now’ and warned the investigation could take weeks.

‘Approximately a four week wait time. How is this legal?’ she told Daily Mail.

The bank advised Ms Graham to seek emergency support from Centrelink and AskIzzy, a service that helps people find food, accommodation and financial aid. 

‘I am most definitely not eligible for Centrelink or AskIzzy resources,’ Ms Graham said.

‘I work full time with a nice wage. But I certainly still have bills to pay and no way to pay them.’

In messages to Ms Graham, 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.

‘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.

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.