Krauatungalung author Veronica Gorrie is concerned Stolen Generations members receiving compensation will be treated with suspicion by banks after she says her own father was interrogated at his local branch.

Her 72 year-old father John, a former Aboriginal liaison officer and child protection worker who received a Public Service Medal, has dementia and last week Ms Gorrie accompanied him to his Westpac branch.

Mr Gorrie had received a payment under the Victorian Stolen Generations redress scheme and wanted to give his children some of it as a gift.

"Dad said he wanted to give his children a portion of it and wanted to get the bank to write cheques," Ms Gorrie said.

"He asked them if he could withdraw money and they said no."

Ms Gorrie said she was told she would be kicked out of the bank unless she left voluntarily after she swore while asking staff to not be rude to her father.

"When I got back inside, dad was sitting in a chair and was visibly upset, and really agitated and I asked him if he was alright," she said.

"He has been a client with Westpac for over 20 years," she said.

Ms Gorrie said she was worried other Aboriginal families receiving redress payments could have similar experiences.

A Westpac Group spokesperson declined to comment on the case, citing privacy concerns.

"Broadly speaking, when a customer attends a branch, we do everything we can to act in good faith to facilitate the requested activity while balancing our obligation to support potentially vulnerable customers," they said.