Don't Let Money Mishaps Freeze Your Fun: FSCL's Top Winter Travel Tips

Scoop

28-05-2025

Press Release – FSCL
The Financial Ombudsman service regularly receives complaints from holidaymakers who run into trouble with financial services.
As winter approaches and many New Zealanders plan mid-year overseas getaways, Financial Ombudsman service, Financial Services Complaints Limited (FSCL), is reminding travellers to take extra care with travel cards, currency exchange, and travel insurance.
The Financial Ombudsman service regularly receives complaints from holidaymakers who run into trouble with financial services.
'Every year we see cases where a simple mistake, oversight, or lapse in security leads to significant financial loss for holidaymakers,' says Susan Taylor, Financial Ombudsman. 'A little preparation can save a lot of stress and money.'
Travel cards
Travel cards are a convenient way for travellers to store foreign currency. Keeping cards secure and being vigilant when depositing funds averts issues.
If you don't keep your card safe or allow someone else to take possession of it, you may not be refunded for fraudulent transactions. Elijah* found this out on a recent holiday in Europe, after losing €3,000 when using his travel card to purchase drinks at a bar.
Transferring foreign currency also requires care. Entering even a single digit incorrectly can send your money to the wrong account. 'Retrieving funds sent to the wrong account can be challenging, as it relies on the recipient returning the money, at the request of the travel card provider,' says Ms Taylor.
Currency exchange
Complaints about money exchange are also increasingly common. To avoid unexpected charges, it pays to compare exchange rates between retailers and remember that exchanging money at an airport is usually more expensive.
Travel insurance
Pre-existing medical condition exclusions are also a cause of problems for travellers when they think they're covered for illness while travelling but find out later they're not.
'Many people get caught out when insurers classify a condition as pre-existing, even if a formal diagnosis hasn't been made,' says Ms Taylor.
This was the case for David* and Meena*, who had to pay their own medical and additional travel costs when David had emergency surgery on his kidney during the couple's holiday in America. The insurer declined the claim because the operation was due to a pre-existing medical condition that David hadn't disclosed—meaning it was not covered by the policy.
David had been diagnosed with kidney stones before his holiday, but was told by the hospital's medical staff that the stones were small and didn't need treatment at that time. David assumed that nothing more could be done, and his symptoms would resolve on their own. Because he hadn't disclosed any of this to the insurer, he had to pay for the associated medical expenses and costs of cutting his holiday short.
Travellers should read their travel policy wording carefully to understand what cover is included in case they need to make a claim.
'Unexpected challenges, extra expenses incurred while travelling, or being ill on holiday can be very distressing, so it pays to take time to select financial products carefully, review any terms and conditions, and always disclose any health conditions to your insurer, even if you don't think they're serious,' says Ms Taylor.