Making a complaint about your financial service provider

If you feel your financial service provider has acted unfairly, there are actions you can take to ensure the problem is addressed and your rights are protected.

You can:

• contact your financial service provider
• get help from a financial dispute resolution scheme
• report the provider
• seek personal support.

A financial service provider is any person or business registered in New Zealand who provides advice on or manages your money matters. This includes:

• investment and financial advisors or mortgage brokers
• banks, lenders, finance companies, credit card and buy now pay later providers
• investment managers, KiwiSaver providers or sharebrokers
• insurance companies and brokers.

It does not include accountants or tax consultants.

Contact your financial service provider

Start by talking to your financial service provider. If your provider seems to have acted unfairly in any way, raise it with them first and ask for the situation to be remedied. This may include having your contract changed or cancelled, or a refund of the fees charged.

Some providers have formal complaint processes and will ask you to complete an online form. This is a good way to ensure that your concerns are managed correctly, and you have a record of your issue. Be clear that you are making a complaint, not just providing feedback.

You can choose to write to your provider about your complaint. Make sure to include all the details mentioned above. You can use this letter as a template.

Complaint letter template [DOCX, 16 KB]

Remember to:

• check your rights – you don’t need to understand the law to make a complaint, but it helps to know your rights and how the law protects you
• review your contract – this should include other paperwork you received from the provider, a list of all fees and outline the conditions of service 
• gather proof – such as copies of correspondence or bank statements
• think about what you'll say – make notes with points you want to cover and what exactly you feel they did wrong
• decide your ideal outcome – include what you would like to change, what compensation you feel you deserve and what you would like to have happen next.

During the conversation:

• take notes – including dates and what was said. If you need to take your complaint to a dispute resolution scheme, this will provide helpful proof
• stick to the facts – explain the problem and share any proof
• say what you want – explain your ideal outcome
• take time out – if it gets heated, or you want to think about their response, arrange a time to call or email back. Explain you need time to digest the conversation
• make it official – if you reach an agreement, get it in writing. It's a good idea to get your contract updated also if that is part of the agreement.

You can review the below information about your rights and what businesses must do when they provide financial services.

Financial advice

Borrowing money 

Managing money 

Insurance

Ask for help if you’re not feeling confident. A free financial mentor such as Money Talks can help or can talk to them for you.

Contact information(external link) — MoneyTalks

Get help from a financial dispute resolution scheme

If you are unable to agree a satisfactory outcome with your provider, or you are unsure about a provider’s response to your complaint, you can contact their financial dispute resolution scheme for help.

All banks, lenders and any retail financial service provider must belong to a financial dispute resolution scheme.

This independent body can:

• give information about how providers should act and provide an opinion on if you have a valid complaint
• share tips and make suggestions on how to complain to your provider
• look into certain complaints when you and your provider cannot agree on a solution.

The schemes are a free and independent alternative to going to court. You do not need to hire a lawyer to represent you.

They can assist with a wide variety of complaints about financial service providers including:

• the management of accounts and products such as loans, credit cards, insurance policies, savings and investment products including KiwiSaver accounts
• the providers activity relating to fraud and scams
• the quality of financial, investment or mortgage advice given by the provider
• the management of payments or incorrect application of fees and charges
• concerns around inappropriate lending decisions
• actions taken to recover debt or repossess assets
• the management of hardship applications
• disagreements over terms and conditions of contracts
• disputes over insurance policies and claim decisions

There are four schemes that providers can belong to: 

Making a complaint(external link) — Banking Ombudsman Scheme
Making an enquiry or complaint(external link) — Insurance & Financial Services Ombudsman Scheme
How do I make a complaint?(external link) — Financial Services Complaints Limited
Complaints(external link) — Financial Dispute Resolution Service

To find out which dispute resolution scheme your provider belongs to, ask them or check:

• their website
• your contract, under the section called ‘Dispute resolution’
• any of the financial dispute resolution schemes listed above — they can tell you which one your provider belongs to and how to contact them
• your provider’s entry on the Financial Service Providers Register

Searching the Financial Service Providers Register(external link) — New Zealand Companies Office

You will need to provide personal information to the scheme to assist the full and fair investigation of your complaint and they may collect information from your financial service provider or a third party if you authorise them to do so.  Check their privacy policy.

Possible outcomes

When the dispute scheme investigates your complaint, it might decide the provider should:

• change your contract — a common option is to agree a new payment plan that you can afford
• overturn the providers decisions or change amounts to be paid on insurance claims
• reduce how much you owe — some fees or interest might be refunded
• lower interest rates or fees charged
• refund overcharged fees or interest
• refund money or order compensation to be paid to you by the provider for losses due to their actions
• consider other measures to address your complaint.

It's up to you, not your provider to accept or reject the scheme's decision. If you don't accept it, you can take your complaint elsewhere, such as taking your case to the Disputes Tribunal or courts. Talk to a lawyer about your options.

Claims you can take to civil court(external link) — New Zealand Ministry of Justice

Report the provider

You can also report issues to government agencies who regulate and investigate businesses who do not follow laws. Reporting issues helps them to address serious problems and prosecute businesses who are acting illegally.

Financial Markets Authority

The Financial Markets Authority investigates a range of complaints about the conduct of individuals and businesses that operate in New Zealand's financial markets. This includes misleading or deceptive conduct, information or disclosures and investment scams.

The FMA can't obtain remedies for individuals. But where a financial service provider is breaching their obligations, they can investigate and, where appropriate, take action to hold them accountable and ensure they meet the standards expected of them.

Make a complaint(external link) - Financial Markets Authority

Commerce Commission

The Commerce Commission enforces consumer laws related to credit, including rights when borrowing money or purchasing goods on credit.

They investigate complaints against businesses that fail to comply with these laws, although they don't act on behalf of individuals or investigate every complaint. 
Your information helps them identify the most harmful consumer issues.

Report a concern(external link) — Commerce Commission

Privacy Commissioner

The Office of the Privacy Commissioner (OPC) regulates the Privacy Act 2020 and makes sure all businesses and organisations know what rules they need to follow. They also help individuals whose privacy has been breached. If you think your financial services provider has misused your information in any way you can complain to them.

Making a complaint(external link) — Office of the Privacy Commissioner

Financial dispute resolution scheme decisions

The dispute resolution scheme websites have hundreds of examples of complaints they have received, how they were reviewed and the outcomes. You can read about some of them in the links below or refer to their websites.

Seek personal support

You can get support at any point from these agencies.

MoneyTalks

This helpline gives free budgeting advice to individuals, family and whānau. Financial mentors can help you understand your financial situation, organise your debt and plan. They can also put you in touch with a local budgeting service and help with issues you're having with lenders. Phone 0800 345 123, or use live chat, email, or text, if you prefer.

Contact information(external link) — MoneyTalks

Community Law Centre

Community Law offer free one-on-one legal advice for people with limited finances and has 24 law centers throughout the country. You can find legal information and other resources on its website.

Our law centres(external link) — Community Law Centre

Citizens Advice Bureau (CAB)

A free, independent service, run by volunteers. CAB can advise you on your consumer rights and obligations, in person, by phone, or online.

Find a CAB(external link) — Citizens Advice Bureau