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NSW Australian Law on Counterfeit Notes from ATMs?

Discussion in 'Other/General Law Forum' started by AnneM, 9 July 2016.

  1. AnneM

    AnneM Active Member

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    Hi, is there any Australian Law that covers the rights of the public when withdrawing money from ATMs if they receive counterfeit notes from the machine?

    Recently, on the south coast of NSW there has been multiple reports on social media of people withdrawing cash from ATMs and finding counterfeit $50 notes in the cash given by the machine.

    Bank staff have said that the money cannot be refunded by the bank. Why is ihis? Surely the bank (or someone) is responsible for the cash in the machine?

    Can anyone help? Thanks in anticipation of a response.
     
  2. AnneM

    AnneM Active Member

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    Anybody?
     
  3. Rod

    Rod Well-Known Member

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    The bank would be responsible for passing out counterfeit money.

    The problem is proving it to the satisfaction of the bank or police. If you take $50 from an ATM, who is to say that is the same $50 note you take into a bank.

    Has it happened to you? Or are you just hearing rumours?
     
  4. AnneM

    AnneM Active Member

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    Not of me personally, but not rumours either. Two different banks have denied responsibility. The money was surrendered to the police.

    I'm not asking if it shouldn't have to be proved, I'm asking who is legally responsible. Are you certain the bank is responsible? Can you point me to any legislation or law that states this?
     
  5. Rod

    Rod Well-Known Member

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    Fairly certain. No legislation that I know of, however it would covered in the contract a customer has with a bank. Contract law is largely common law based and doesn't have legislation. Customers contract with the bank to withdraw money either from the customer's account or on credit and the bank agrees to do. If the bank doesn't provide the money or provides fake money, they have breached the contract. Not sure if this is the answer you wanted to hear.
     
  6. AnneM

    AnneM Active Member

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    Thanks. I can't understand why the banks are claiming it isn't their responsibility then. It appears to me, by what you're saying, it would have to be taken to court for a 'breach of contract'? If that is the case, that really doesn't help those who are being disadvantaged by the counterfeit notes.

    Thanks for taking the time to comment. I appreciate your help and I'm hoping a legally trained person with knowledge of the law in this area will see my query and confirm if the bank holds responsibility.
     
  7. Rod

    Rod Well-Known Member

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    It was too early in the morning to be answering posts :( The other area of interest is the Australian Consumer Law. There are numerous provisions in the ACL that would likely force a bank to pay up.
     

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