Scoop has an Ethical Paywall
NZ bank tactics: 'They made it as difficult as they could'
Jonathan Mitchell, Business Reporter
Bank customers are criticising tactics being used in New Zealand, as banks across the Tasman face the fallout from a scathing royal commission.
The Reserve Bank and the Financial Markets Authority told New Zealand's banks this week to prove they are not cheating customers and lying about it like their Australian owners.
While Bankers Association chair David McLean said there was no such misbehaviour in New Zealand, bank custom-ers have stepped forward to complain about bad treatment.
One customer, Ann, went to her bank to get a loan and was told she would have to buy insurance as well. She said she reluctantly agreed while feeling pressured.
"I just thought that's what happened with banking these days that if you got a loan there were cer-tain conditions that you had to fulfil to get the loan," she said.
She said she did not complain to the Banking Ombudsman because she was worried about the re-percussions.
"I've got this relationship with the bank and I might need them in the future and I don't want to prejudice my ability to get loans," she said.
Pete Rose Smissen changed banks after a run-in with Westpac over a credit card he cancelled when he moved to London a few years ago.
His attempt to recover the money he had loaded onto the card was a long and fruitless exercise, he said.
"They just made it as difficult as they could ... [the bank] knew I was calling from London and would leave me in a hold queue for 45 minutes till eventually I just gave up and they kept the mon-ey," he said.
Mark Lewis banked with Westpac for 35 years, but left after trying to renegotiate the interest rate on his mortgage.
He said new customers were getting better deals.
"The bank manager said to me at the time 'It's the way we're doing things, but I don't necessarily agree with it'," Mr Lewis said.
He said in hindsight he should have gone to the Banking Ombudsman to complain.
Banking Ombudsman Nicola Sladden said there was no evidence of systemic bad behaviour and that the Reserve Bank and FMA's directive went far enough.
She said the complaints she received were usually isolated incidents and involved miscommunica-tion.
"We have not seen any of the widespread or systemic conduct issues that are coming out of Austral-ia," she said.
However, First Union national finance sector organiser Stephen Parry told Morning Report today that only a royal commission could give the public reassurance that banks in New Zea-land were acting lawfully.
Mr Parry said banking staff were under too much pressure to make sales, resulting in the use of un-wanted tactics.
RNZ
New Zealand's public broadcaster, providing comprehensive NZ news and current affairs, specialist audio features and documentaries.
Radio New Zealand is a Crown entity established under the Radio New Zealand Act 1995. Radio New Zealand News are vital elements in our programming, providing impartial news and information to New Zealanders every day. Radio New Zealand (RNZ) provides listeners with exciting and independent radio programmes in accordance with the Radio New Zealand Charter.
Binoy Kampmark: Censorship Wars, Elon Musk, Safety Commissioners And Violent Content
Gordon Campbell: On The Public Sector Carnage, And Misogyny As Terrorism
Ramzy Baroud: NATO’s Never-ending War: The 75-Year-Old Bully Is Faltering
Eugene Doyle: Joining AUKUS Not In NZ’s National Interest
Binoy Kampmark: The Australian Defence Formula, Spend! Spend! Spend!
Ian Powell: New Hospital Building Trumps ‘Yes Minister’ Hospital Without Patients