Latest news with #FinancialServicesComplaintsLimited
Scoop
16-07-2025
- Business
- Scoop
Financial Complaint Numbers Show No Sign Of Easing, Says The Financial Ombudsman Service, FSCL
Complaints about financial services remain at historically high levels, according to new annual statistics from the Financial Ombudsman Service, Financial Services Complaints Limited (FSCL) — reflecting ongoing financial pressure on small businesses and households. For the year ending 30 June, FSCL received 1,469 complaints, up from 1,426 in the previous year, and double the amount recorded five years ago. "We're not yet seeing signs of complaints reducing since increasing rapidly two years ago in the wake of Covid-19," says Financial Ombudsman, Susan Taylor. "What's changed is the spread. Complaints are now more evenly distributed across a broader range of financial services, rather than being concentrated in just a few areas like non-bank lenders." Lenders accounted for the largest share of complaints at 38%, but many of these were resolved before escalating to a dispute needing formal investigation. Dispute numbers rose by 4% overall, with a noticeable shift in the types of issues and sectors involved. Of the 366 cases that were formally investigated, complaints about financial advisers — including mortgage and insurance brokers, as well as wealth advisers — made up the largest proportion at 23%, followed by complaints about lenders at 20%, and insurers at 17%. One emerging trend is a rise in complaints from small businesses, especially about loans and insurance products. "This likely reflects the tough trading environment many small business owners are facing," says Ms Taylor. "They're under pressure — and we're seeing that come through in the disputes they bring to us." In a recent case, a woman discovered she had been added as a guarantor on her husband's business loan, without her knowledge or consent. The business later defaulted on the loan, and she faced the consequences of a guarantee she never agreed to give — including putting the family home at risk of a mortgagee sale. In this case, the lender offered to put the matter right for the woman by agreeing to extinguish her guarantee and release their security from the woman's half share of the family home. 'The case highlights the importance of giving clear explanations and proper disclosure to all parties to a loan, including guarantors of business debt, especially when small businesses are borrowing under stress. "Many of these issues could be prevented altogether with clearer and personal communication by the lender to the guarantor. "We're here to help when things go wrong — but also to feed insights back into the system so things go better next time,' concludes Ms Taylor. About FSCL – a Financial Ombudsman Service FSCL's role is to resolve consumer complaints about financial service providers who are participants of the FSCL scheme. This includes non-bank lenders, credit unions, insurance companies, financial advisers, including mortgage brokers and insurance brokers, corporate trustees, fund managers, transactional service providers, and card issuers. FSCL was established in 2010 following the approval of the then Minister of Consumer Affairs under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (FSP Act). It is not-for-profit.
NZ Herald
15-07-2025
- Business
- NZ Herald
Financial complaint numbers at historically high levels
The Financial Services Complaints Limited received 1469 complaints in the year to June 30. Photo / 123RF Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech. The Financial Services Complaints Limited received 1469 complaints in the year to June 30. Photo / 123RF Financial complaint numbers remain at historically high numbers and show no sign of easing, the Financial Ombudsman says. New annual figures show the complaints service received 1469 complaints in the year to June 30, up from 1426 the previous year. 'We're not yet seeing signs of complaints reducing since increasing rapidly two years ago in the wake of Covid-19,' said Financial Ombudsman Susan Taylor. 'What's changed is the spread. Complaints are now more evenly distributed across a broader range of financial services, rather than being concentrated in just a few areas like non-bank lenders.' Lenders accounted for the largest share of complaints at 38%, though many were resolved before escalating to a dispute needing formal investigation.
Scoop
16-06-2025
- Business
- Scoop
Financial Ombudsman Service, FSCL, Rated Accessible And Fair Dispute Resolution Service In Independent Review
An independent review report released today confirms that Financial Services Complaints Limited (FSCL), a financial ombudsman service, is delivering fair, accessible, and effective dispute resolution for New Zealand consumers. The five-yearly review, undertaken by independent reviewer Nanette Moreau Hammond, found that the service is meeting its legislative requirements of fairness, independence, accessibility, effectiveness, accountability, and efficiency. FSCL Board Chair, Jane Meares, says, 'the review confirms that FSCL is delivering a professional, fair, and well-managed dispute resolution service. 'We're proud of our team's professionalism, integrity, and commitment to providing accessible justice in a dynamic and changing financial services environment. 'Timely, responsive, accessible, trusted, credible, easy to communicate with, and well-reasoned were some of the common themes from the stakeholders interviewed by Ms Moreau Hammond,' adds Ms Meares. Ms Moreau Hammond makes recommendations to further strengthen FSCL's services. These include conducting additional community outreach to assist vulnerable and disadvantaged consumers, and increasing engagement with FSCL's 9,355 participants to ensure they meet their regulatory obligations of informing their customers of the complaint resolution service. Financial Ombudsman and FSCL Chief Executive Officer, Susan Taylor, welcomes Ms Moreau Hammond's recommendations. 'The Board has accepted all the recommendations, and we are already implementing them.' 'One of the challenges highlighted is that 20% of financial services consumers are unaware of any dispute resolution options available to them,' adds Ms Taylor. 'We are actively working on increasing consumer awareness of our service and reaching more consumers, so they know help is available when they have a problem with their financial service provider.' Notes: The independent review is available at on FSCL's website. FSCL's response to the reviewer's recommendations is available at: As an approved dispute resolution scheme under the Financial Service Providers (Registration and Dispute Resolution) Act 2008, FSCL is required to be independently reviewed every five years. This is its third review since the service launched in 2010. About FSCL The role of FSCL is to resolve consumer complaints about financial services that are participants of the FSCL scheme. This includes non-bank lenders, credit unions, insurance companies, financial advisers, including mortgage brokers and insurance brokers, corporate trustees, fund managers, transactional service providers, and card issuers. Financial Services Complaints Limited (FSCL) was established in 2010 following the approval of the then Minister of Consumer Affairs under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (FSP Act). It is not-for-profit.
Scoop
28-05-2025
- Scoop
Don't Let Money Mishaps Freeze Your Fun: FSCL's Top Winter Travel Tips
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.
Scoop
28-05-2025
- Scoop
Don't Let Money Mishaps Freeze Your Fun: FSCL's Top Winter Travel Tips
Wednesday, 28 May 2025, 7:18 pm Press Release: FSCL 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. * Names have been changed. © Scoop Media
