RACV accidentally drains customer bank accounts after system error

Customers with RACV insurance were left out of pocket this week after a technical fault drained their bank accounts.

Alan, from Mount Waverley, was billed more than $20,000. Picture: Tony Gough

CUSTOMERS with RACV insurance were left out of pocket this week after a technical fault drained their bank accounts.

The company mistakenly charged tens of thousands of dollars by repeatedly billing credit cards or personal accounts on Monday during a system error.

RACV has issued refunds for all those affected but some customers are still waiting for the cash and have been left unable to make other purchases.

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Alan, from Mount Waverley, was billed more than $20,000. Picture: Tony Gough

Mount Waverly resident Alan, who asked not to disclose his last name, said he had been caught by surprise when he found the error.

“I had $21,931.36 taken out of my card in 272 separate transaction each totalling $80.63,” he said.

“Effectively I had my card frozen for two days, which was difficult and embarrassing when I got to the checkout and had my card declined.

“RACV were aware and said they’d try and fix as quick as possible but the hardship I believe it places on people’s lives,and in some cases businesses, was not acceptable.”

The insurer did not detail how many people were affected but the RACV’s social media pages were flooded with complaints within hours.

Another customer, Winter Birrell, said she had watched the money drain from her account in a matter of minutes.

“I went to the bank to block my debit card and it hit $18,000 while I was standing there,” she said.

The RACV is advising it make take some financial institutions longer to process the refunds than others.