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

 


Commission seeks further complainants in farming swaps case

Commerce Commission seeks further complainants in farming swaps case


The Commerce Commission is asking for any remaining rural customers who have concerns with the way that interest rate swaps were sold to them to come forward.

Since mid-2012 the Commission has been investigating alleged mis-selling of interest rate swaps to the rural sector by ANZ, ASB and Westpac between 2005 and 2009. During the course of its investigation, the Commission has received a significant number of complaints from rural customers of those banks.

"We want to ensure that we have received information from all potentially affected customers before we take next steps in this investigation," said Commission Chairman Dr Mark Berry. "We cannot be confident that any compensation sought in Court or that may otherwise be available will be obtainable for customers who have not made contact with us. We need rural customers to come forward and provide information that supports their position, if they want it to be taken into account. We now want to give those who have not been prepared to come forward one further chance to do so.”

The Commission asks all affected customers – of any of the three banks – to contact the Commission before30 May 2014 if they wish their concerns to be considered. Customers can complete the questionnaire on the Commission’s website, or can call the Commission’s contact centre on 0800 943 600.

Background
Interest rate swaps are a financial derivative product that allows a borrower to manage the interest rate exposure on their borrowing. They were typically provided to large corporate and institutional customers, but from 2005 were offered by various banks to rural customers throughout New Zealand.

On 17 December 2013, the Commerce Commission announced that it has advised three major New Zealand banks (ANZ, ASB and Westpac), that it intended to issue legal proceedings over their sales of interest rate swap contracts to rural customers.

In April 2014, the Commission announced it anticipated making a further announcement mid-year, once it has furthered discussions with each bank about the information it holds and any possible resolution of the Commission’s concerns. The Commission has entered into a ‘standstill agreement’ with each bank meaning there will be no barrier to any proceedings brought by the Commission as a result of taking this extra time.

More information about the interest rate swaps case can be found at - http://www.comcom.govt.nz/fair-trading/interest-rate-swaps-2/

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news