Source: Banking Ombudsman Scheme
The Banking Ombudsman Scheme helped more than 5,800 bank customers and facilitated compensation or refunds totalling more than $2 million according to its latest annual report. The most common complaints were about personal transaction accounts, property lending and credit cards.
Complaints and disputes were up 4 per cent and 7 per cent respectively. Despite this, the scheme exceeded its timeliness targets and maintained high satisfaction among users (more than 80 per cent).
Financial hardship complaints rose 55 per cent, according to the report. Most involved vehicle and home loans and KiwiSaver withdrawals. Service-related complaints rose 11 per cent. Poor communication was a recurring issue in many of these complaints.
Scam-related complaints fell 17 per cent to 694 cases, but the average reported loss increased 10 per cent to $88,000 this year – up from $80,000 in 2023-24.
Banking Ombudsman Nicola Sladden said the drop in scam cases reflected recent initiatives by banks to tackle scams. However, she cautioned against any suggestion that scammers were on the ropes.
“Scams remain a serious concern, especially given their increasing sophistication and impact,” said Ms Sladden. “We are pleased to be part of the new Anti-Scam Alliance, and we continue to push for stronger industry codes and coordinated action to protect consumers.”
The scheme underwent an independent review during the year, which concluded the Banking Ombudsman Scheme is “a modern ombudsman scheme that makes a valued and credible contribution to a fair banking sector”. The reviewer made 11 recommendations, all of which have been implemented.
The annual report also announced the retirement of the chair of the scheme’s board, Miriam Dean, who has held the position for 12 years. She will be replaced in January by Michael Heron, a well-known KC and former Solicitor General with expertise in commercial law, dispute resolution and governance.
Ms Dean said Mr Heron’s skills and experience, particularly in online dispute resolution, made him an ideal candidate to take over the role.
Ms Dean said the scheme would remain a trusted voice in helping customers when things go wrong.
