Better financial dispute resolution schemes for consumers approved
Consistent outcomes for consumers complaining about financial services are on the way.
Consistent outcomes for consumers complaining about financial services are on the way.
Cabinet has approved consistent rules for the four approved financial dispute resolution schemes.
The current schemes (Banking Ombudsman scheme, Insurance & Financial Services Ombudsman, Financial Dispute Resolution Service and Financial Services Complaints Ltd,) resolve complaints between consumers and financial service providers.
The schemes are independent and each has different rules that govern disputes. Inconsistencies between the schemes have the potential to impact accessibility of the services, complaint outcomes and whether a complaint can be made.
To iron out the inconsistencies and improve the dispute services for consumers, Cabinet has agreed to:
While this is a win for consumers, we think a single dispute resolution scheme (like the Australian or UK schemes) would have been preferable.
Regulations that reflect the approved changes are currently in development.
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