More and more people are joining their bank KiwiSaver schemes however the Financial Markets Authority (FMA) are investigating the practices of some banks in getting customers to switch to their own KiwiSaver scheme with evidence emerging that customers were not fully informed about the switch; see also here. The FMA are also concerned with the approach some providers are taking in offering incentives. As with any regulated financial product, the seller has to provide full details of the risks and benefits along with other details of the scheme usually in the form of an investment statement or prospectus. Remember if you feel you have been misled or missold something by a financial product provider (or anyone else!) complain to them first although it’s not always easy especially when it comes to KiwiSaver. Remember if the bank or other provider can’t resolve the matter to your satisfaction, you can go to a free complaint resolution service – all financial service providers in New Zealand and Australia are required to belong to one.
If you have a problem with your bank that isn’t to do with KiwiSaver or other investments, or you have an insurance problem, you can go to the Insurance and Savings Ombudsman (ISO) (after you’ve tried to solve it with the provider of course) however as we’ve been reminded with earthquake related insurance complaints, the ISO decisions are not binding and most cases you’ll be better to try and resolve it with your bank and consider switching banks.
Have you had any experience of making a complaint or resolving an issue about a financial service or product you’d like to share?Read More