‘Ombudsman’ call for bank customers

Press, 26 October 1989, Page 12

‘Ombudsman’ call for bank customers

PA Wellington Bank customers need a special ombudsman to deal with their complaints, a spokesman for the Consumers’ Institute, Mr David Russell, says. The “banking ombudsman” would hear complaints from customers still not satisfied after personal approaches to the bank, and would act on their behalf, he said. The Bankers’ Association and trust banks should establish the office as a

service to customers, rather than setting up an official Government body, he said.

At present aggrieved bank customers could take their complaints to the Disputes Tribunal. A banking ombudsman could have specialised knowledge of the banking industry, and be independent.

Mr Russell’s view is based on a survey of 3440 Consumers’ Institute members who were asked to rate their bank’s performance in categories such

as services, interest rates, fees and charges, handling of loan applications, quality of advice and information and how well each resolved customer problems.

The most common problems listed were failure to record transactions or wrong recording of transactions, failure to carry out instructions and dissatisfaction with fees or interest charges. Deregulation of the banking industry, and the proliferation of technologi-

cal developments were further reasons why consumers needed better advocacy with the industry, Mr Russell said.

The Bankers’ Association deputy chairman, Mr Dennis Ferrier, said if Mr Russell was to approach the association with a firm proposal it would be considered. However, to achieve maximum independence it would be best for the office to stem from a body not related to the industry, he said.