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


BNZ Settles with Commerce Commission on Card Fees

BNZ Settles with Commerce Commission on Card Fees

Bank of New Zealand has reached a settlement with the Commerce Commission relating to the disclosure of currency conversion fees.

The fees were incurred by customers on overseas debit and credit card transactions, and online card payments made to international sites between January 2002 and December 2004. The Bank was one of eight New Zealand card issuers to have its foreign currency conversion disclosure reviewed as part of the Fair Trading Act 1986.

Bank of New Zealand is concerned that its practices at the time did not give customers sufficient information on currency conversion fees.

“Our disclosure on fees and charges was industry standard at the time, but we now accept that the level of disclosure was inadequate, says Blair Vernon, Bank of New Zealand general manager, Personal Financial Services.

“We are sorry that our disclosure didn’t reach acceptable standards, and for any inconvenience to customers. We will be contacting existing and previous customers to provide compensation as swiftly as possible.”

By agreement with the Commerce Commission, the Bank will provide compensation of $5 million to affected customers. The payment amount is a pro rata portion of the currency conversion fees paid by each customer during the relevant period. The fund will be subject to independent audit.

Payments to existing Bank of New Zealand customers will be made via direct credit by 31 October. Bank of New Zealand will contact previous customers by mail and advertising to arrange for payments. Previous customers can choose to receive a cheque or alternatively give their current account details by 30 November.

Since October 2003, Bank of New Zealand has disclosed the currency conversion fees it charges on credit card billing statements as well as other cardholder documentation. It maintains that credit cards remain a safe, convenient form of international payment whilst overseas or when making purchases over the internet.


© 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>>


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>>


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>>


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>>


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>>


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>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news