Source: Banking Ombudsman Scheme
The number of disputes dealt with by the Banking Ombudsman Scheme rose by more than a quarter on a year ago to reach their highest level in a decade, according to the scheme’s annual report released today.
The scheme investigated 283 disputes in 2025-26, a 26 per cent increase on the previous financial year.
Banking Ombudsman Nicola Sladden said the increase applied to all types of disputes, but particularly to lending disputes, which rose 59 per cent on the previous year. Ms Sladden attributed this rise to the financial pressures faced by many New Zealanders. Financial hardship was a factor in a fifth of disputes.
“Customers are also increasingly using AI tools to understand their rights and prepare their complaints. In addition, these tools are giving users the confidence to pursue their complaints as far as possible.”
The scheme resolved disputes on average in 49 working days, 14 fewer than the year before.
Ms Sladden said the other big trend of the year was the drop in fraud and scam complaints. These remained a large part of the scheme’s work, although they fell 40 per cent compared with the previous year. Fraud and scam disputes fell by almost as much – 36 per cent.
She attributed the falls to the success of efforts by banks and government agencies to raise awareness about how to avoid being duped by scammers. She also believed the introduction of stronger fraud detection and prevention measures by banks in December last year was already having a bearing on the improved figures – although she cautioned against complacency. “Scammers are nothing if not determined and adaptable.”
More than half of scam complaints involved unauthorised transactions, of which phishing and information harvesting scams remained the most common types.
Despite the rise in disputes, the scheme’s overall caseload fell 13 per cent for the year, due to a 10 per cent decline in general enquiries and a 14 per cent drop in simple complaints.
The report said loans, bank accounts and service were the most common complaint categories.
It also noted the findings of an independent case review by Professor Ron Paterson, who found the scheme was handling complaints effectively, delivering fair and well-reasoned decisions, and meeting the benchmark principles expected of an approved dispute resolution scheme.