Michael recently migrated from the United States of Orangutan. Whilst he
cannot speak much English, he is an awesome chef. So, he has started
working as a chef at the Hilton Hotel in Melbourne, but is unsure about
which Superannuation fund he should join. He speaks to a financial advisor
at THATBank who advises Michael to join the HelpMe Super Fund, a super
fund operated and controlled by a subsidiary company of THATBank,
because they also offer income insurance, and if he ever needs a home loan,
he will be offered a "great deal" from THATBank, IF he is a member of
HELPMe Super Fund. The premiums will cost approximately $100 per
week and the premium payments can be made by using the funds from his
superannuation account. Michael thinks this method of payment is illegal,
and that the advisor is "tricky".
Advise Michael.
Helen, an interior decorator, arranged to sign a lucrative contract with a
client in Sydney. On Friday she stopped at the ATM on the way to her travel
agent. There was a special airfare on offer and she intended to withdraw
$200. The machine ‘ate up’ her card and ignored her instructions to
withdraw the cash. She tried to phone the bank, but could not get through.
On Monday she went to the Bank and reported the incident. However, the
branch manager refused to release her card, claiming to be concerned
about some irregularities. She had to postpone her trip until a week later
when her card was finally released. The special airfare was no longer available and she had to purchase the ticket at the regular price.
Dissatisfied with the delay, the client in Sydney eventually decided not to
go ahead with the contract. Her complaints to the Bank have gone
unanswered.
Advise Helen as to her liability, if any, for the unauthorised transactions.