Bank customers battling on
Greater reliance on electronic banking, fewer bank branches and a move away from personal service to call centres are behind many of the problems dealt with by the Banking Ombudsman's Office.
Tuesday, November 14th 2000, 6:18PM
by Paul McBeth
Greater reliance on electronic banking, fewer bank branches and the move away from personal service to the use of call centres are causing many of the problems dealt with by the Banking Ombudsman's Office.
That's according to Hon Sir Ian Barker QC, Chairman of the Banking Ombudsman Commission. In the Office's latest annual report, just released, he says that the Ombudsman scheme is operating in a climate where "commercial and technological developments in the banking industry alter the common understanding of the traditional banker/customer relationship".
Meanwhile, Banking Ombudsman Liz Brown says many customers are finding it difficult to get important information from their banks, especially when they're mostly dealing through a call centre.
She says she's increasingly finding that information about changes to fees, products and services and about the complaints process isn't reaching those customers who mainly contact their banks by phone.
Brown says there's a good deal of confusion about the availability of funds deposited by electronic transfer.
"Banks sometimes treat as uncleared funds deposits that customers have every right to expect will be treated as cleared funds. These include cash deposits and deposits of funds received by telegraphic transfer from overseas through another New Zealand bank."
Another source of confusion is that some banks don't make automatic payments if the relevant account doesn't hold sufficient funds, while other banks make the payments and then dishonour them.
The Banking Ombudsman's Office has seen a "very substantial increase" in complaints relating to current accounts over the past year, with more complaints about fees and charges and about alleged breaches of contract.
Brown also says that banks offering Internet services should also provide customers with the same sort of information that's available in branches. She believes that the Code of Banking Practice, which is about to be reviewed, should promote the use of websites and/or email as a way to communicate with customers who don't visit branches or read the public notices.