Pubdate: Sun, 13 Nov 2016
Source: Province, The (CN BC)
Copyright: 2016 Postmedia Network Inc.
Contact:  http://www.theprovince.com/
Details: http://www.mapinc.org/media/476
Author: Nick Eagland
Page: 3

FEARS OVER DTES RUSH ON 'FREE MONEY'

Overdose concerns grow as computer upgrade allows credit union members
access to overdraft

Service providers in the Downtown Eastside are fearing a spike in
overdoses and homelessness in the area after computer upgrades gave
members of a local credit union temporary access to overdrafts.

ATMs were being drained Saturday after word spread quickly around
Hastings and Main streets that members of Pigeon Park Savings could
use their client cards to make multiple withdrawals of $80, despite
never having access to an overdraft before.

Many account holders who spoke to Postmedia News said they didn't
believe they'd have to pay the money back.

Pigeon Park Savings is a collaboration between Vancity and Portland
Hotel Society, which provides community services to people living in
the Downtown Eastside. It has given residents with low incomes access
to basic financial services since 2004.

A message on Pigeon Park's answering machine told clients that
starting Thursday, the branch would be updating its banking computer
system and clients would only be able to access their accounts using
ATMs until Monday.

Vancity spokesman Darwin Sauer said the credit union performed a
"rigorous risk analysis" leading into its upgrade weekend and
developed measures to establish daily limits for members.

"These limits were set to limit the risk to Vancity while ensuring our
members could access their money," Sauer said. "We set small daily
limits for the majority of Pigeon Park members based on an analysis of
what they would normally withdraw. We're aware of a small number of
people across the system who have over-withdrawn their accounts and we
put measures in place to deal with those situations."

Fewer than 100 Pigeon Park members had over-withdrawn their accounts,
but Vancity was "temporarily suspending access from ATMs for those
members," Sauer said.

However, before access was suspended, more than a dozen Pigeon Park
Savings members told Postmedia they had used local ATMs to make cash
withdrawals of $80 or more.

"I went to the bank machine and then pressed chequing, 80 bucks," said
Johnny Gulbrandsen. "Apparently other guys were doing it (and) went
two or three times - $80, $80, $80. I know one guy got $240 and I
heard another guy got up to $900."

Sauer said it was unlikely anyone had over-withdrawn such a large sum
due to the limits set by Vancity.

But Gulbrandsen said "a lot of people" were taking out overdrafts. He
believed most of them were spending the money on drugs.

"I think it's a bad thing," he said. "The bank's made a mistake,
right? And a lot of people are going to pay for it when it comes to
cheque day. They'll say, 'F--k man, look at all the money I spent.'"

Gary Greer, another Pigeon Park member, said someone told him about
the overdrafts Saturday morning. Despite having "no money in the
bank," Greer gave it a try.

"I went there and tried for $100. It wouldn't give me $100 so I tried
it again for $40 and I tried it again for another $40. So I got $80
out of it," he said.

Greer said he's treating the overdraft as if it were a "cash advance"
against his welfare cheque later this month. "It's not fraud or
nothing," he said.

Jeremy Hunka, spokesman for the Union Gospel Mission, which offers
housing, food and recovery programs, said staff had spoken to UGM
guests who successfully took out "money they didn't have" from their
Pigeon Park accounts Saturday.

"Outside our building, down the street, people are aware that
something's going on where they're able to take out money," Hunka
said. "The big issue is that some of these people think this is free
money and they're just able to take out free money with no
consequences - or because it's a banking error."

Hunka said UGM is concerned this sudden access to extra cash, combined
with a lack of financial literacy, could put some people at risk of
homelessness or overdose.

According to a study by the B.C. Centre for Disease Control, between
2009 and 2013, overdose deaths were on average 40 per cent higher
during weeks when income and disability cheques were issued.

"If people are unknowingly putting themselves into overdraft and are
spending their rent money weeks before their cheque actually arrives,
that's a recipe for a big problem," said Hunka, adding that UGM staff
are warning guests they'll have to repay the money withdrawn.

Portland Hotel Society's Coco Culbertson said her organization became
aware of the issue Saturday morning.

"The PHS immediately mobilized all front-line employees to be on hyper
alert for increased overdose incidents due to the possibility people
may have had access to more money than usual," she said.

"Our prime concern is to keep community members out of harm's way. As
far as I know this overdraft issue isn't related to Pigeon Park
specifically but is Vancity-wide and includes all of their customers."

Sauer stressed that Vancity would work one-on-one with any Pigeon Park
member who has over-withdrawn their account to determine how to
resolve the situation.

"We want to make sure everyone has funds and has access to the money
in their accounts, so we're asking those members who require access to
the money to contact our call centre and we'll work with those members
directly," he said.
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MAP posted-by: Matt