View Full Version : OT Why do banks need to know this?

22-05-2003, 02:54 PM
My brother from Aussie just called me to find out what the physical address of my bank is because his bank said they need to know it. I gave him all the details including my account, bank branch but not the actual physical address, I know the road, I know where it is, but the actual number is unknown to me.

So I looked up in the phonebook for the actual address of the bank and what do you know, it doesn't say what number, it says address and the mall but no actual number. (his computer got shocked by lightning if you are wondering why he just didn't email me)

Why would a bank over there need to know this when all my brother is doing is transferring money to my account? I mean it's not like they are going to send my money via envelope now, well I hope not!

My brother asked them why they needed to know that information because he did the same thing about 2 years ago and never needed to say where the actual bank is located. It could be on Mars if he likes, as long as it goes to the right account it shouldn't matter right? Even my account number suggests what branch it is.

22-05-2003, 02:59 PM
What if you just made up a number?
Would they notice or care?

Graham L
22-05-2003, 03:01 PM
They've got a space on their deposit form. :D

22-05-2003, 03:03 PM
My brother is going to make up a number, since I told him I have no idea apart from what it said in the phonebook.

And that's just the point, it doesn't make a difference where the bank is to me. I should be the only person in the world with this account number.

Tom McB
22-05-2003, 03:10 PM
I'm not sure about the need for the street number but perhaps it's to differentiate between several branches in a city/region e.g. the Lambton Quay branch of Westpac vs the one in Courtenay Pl.

Go ahead and make up any number if the book does not give one. After all, since the deregulation, how many bank branches do you see in one street anyway?

Graham L
22-05-2003, 03:26 PM
No Tom, the bank and branch are identified by the account numbers. For example, an account starting "010 797" is held at the Hereford St (Christchurch) branch of the ANZ bank. The street number (and the actual street) don't really matter. I suppose if the account number is wrong, having the "name" of the branch (which is often that of a suburb or town) might help. But if you get the account number wrong, your money will either go nowhere, or go to someone other than the intended recipient. :D

22-05-2003, 03:28 PM
I'm still thinking about why the actual physical address is needed, my brother is transferring money from his account to mine. Since he went in and saw the bank over the counter, should they even care where he's transferring the money to? It's his money, he should be able to do what he likes with it. Maybe they are worried that he's funding terrorists and could possibly link my account to some swiss bank? Maybe they just don't like the idea that his money will be leaving their bank, mean they might think he's going to close his account with them and they wouldn't want to lose a customer.

Again though, why should they care? I just think his bank is becoming too invading and nothing is allowed to be a secret from them anymore.

22-05-2003, 03:36 PM
I understand the problem with sending it to the wrong account, but that is his problem if he gives them an incorrect account. They state somewhere in their terms about this, and once transferred that's that, if it's wrong it's your fault (unless the bank did it by error). Again the bank should only need to double check with him and confirm it's right with him. I am still not understanding this physical address nonsense. I may pop into a bank and ask up more on this as I can't even find a suitable answer that would require them to need this. What about Internet Banks? Do you give them the URL to it?

Tom McB
22-05-2003, 03:37 PM
Actually, I think it's been that way ever since and not something that they've decided to demand from customers just recently. Funny how they ask for physical addresses when they don't list them down in the book.

The bank/branch bit of the account number is right. But no, it doesn't "go nowhere" - when the funds cannot be transferred to a valid account, it goes to the source branch's "unposted items" account. Out of your pocket and into theirs until you sort out the right payee account. Guess who keeps the credit interest?

22-05-2003, 03:57 PM
Sorry Tom I wasn't clear by what I meant, I mean if it was a valid account but not my account, but yes if it's not a valid account the bank are just as glad to keep the money, why wouldn't they just return it to your account and charge some sort of fee for it, they charge you fees for having insufficient funds, why not charge fees called "stupid, the account doesn't exist, thanks for the fee though", especially if it was a lot of money, otherwise the bank is very greedy if it can keep your money like that. Can you ask them to put it back into your account because it was wrong less their handling fees no doubt?

Tom McB
22-05-2003, 04:13 PM
Good suggestion, Kame. Happened to me before. Wifey closed her acct the day before I transferred the grocy share. Found my money in the branch's goodwill vault for the silly.

Perhaps a reversal transaction with an appropriate reason code and fee (careless customer, let's give him a nice lesson) ?