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The Guardian - AU
The Guardian - AU
National
Christopher Knaus and Lorena Allam

AGL was warned it was wrongly taking welfare payments from former customers but failed to act, court hears

AGL electricity bill
It is alleged AGL failed to take steps to stop more than $700,000 being wrongly diverted from welfare payments vis Centrepay. Photograph: David Mariuz/AAP

The energy company AGL was warned it was taking money from the welfare payments of former customers, and was sent daily updates on the transactions being made on the company’s behalf via the government debit scheme Centrepay, but failed to take steps to stop more than $700,000 in wrongful deductions, court documents allege.

Guardian Australia last week revealed serious problems with Centrepay, a system that allows businesses to take early deductions from a person’s welfare payment before it hits their bank accounts.

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