Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Credit Card Brochures Breached Fair Trading Act

BNZ Acknowledges That Its Credit Card Brochures Breached Fair Trading Act

In a settlement with the Commerce Commission, the Bank of New Zealand (BNZ) has acknowledged that a claim in its credit card brochures made a misleading representation to non-business consumers about their rights and breached the Fair Trading Act.

The misleading claim made by the BNZ was: "We are not responsible for any indirect, special or consequential losses caused by occurrences within our control".

Commission Chair John Belgrave said that the BNZ and other banks can be responsible for such losses and non-business consumers can be entitled to compensation and other remedies from their bank.

Mr Belgrave said that the Commission has withdrawn its court action against BNZ, in return for BNZ acknowledging that it breached the Act and writing to all its credit card customers advising them of the changes in its terms and conditions.

The misleading claims relate to BNZ's Visa, Mastercard and GlobalPlus credit cards, and were made in brochures titled Your Credit Card Terms and Conditions and Terms and Conditions of your GlobalPlus Card.

The Consumer Guarantees Act gives consumers legal rights to guarantees and remedies that must be provided and cannot be contracted out. Among these is the right for non-business consumers to claim for damages and losses caused by the reasonably foreseeable failure of a service.

Banks must not engage in conduct that might mislead consumers about their rights and remedies in the event of the bank's actions causing foreseeable loss or damages.

"The same applies to all businesses providing services to consumers," Mr Belgrave said. "If they are not sure about what guarantees and remedies they must provide, then they should get legal advice about both these Acts. The Consumer Guarantees Act gives consumers rights, and the Fair Trading Act prohibits misleading claims about those rights".

Background

In this case, BNZ has given the Commission signed undertakings:
* acknowledging that it breached section 13(i) of the Fair Trading Act
* that it has removed the statement from its credit card brochures
* that it will notify its credit card customers of the change in conditions
* to ensure that all its advertising and promotional material complies with the Act
* to provide Fair Trading Act workshops for its managers and staff
* to have the Commission publicise the settlement, and
* that the Commission could resume court action if the settlement is not honoured.

Media contact: Fair Trading Manager Ross McPherson Phone work (04) 498 0909, cellphone 021 627 909, home (04) 232 6004

Senior Advisor Communications Vincent Cholewa Phone work (04) 498 0920, home (04) 477 0039

Commission media releases can be viewed on its web site www.comcom.govt.nz

Regards Leo van Schyndel Records Officer Corporate Services Direct dial : (04) 498-0929 E-mail : leo.vanschyndel@comcom.govt.nz

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news