Greedy, arrogant, uncaring - what rankles about the banks

We invited readers to send the Herald stories about dealing with the banks. Here are some of them.

Complaint: One weekday evening in mid-1998 we were contacted by a person from the ASB claiming to be our "new personal financial adviser." She asked if we were aware that interest rates could be set. After being advised that many people were fixing their rates, I hurried down to our closest branch, where our mortgage is held. At Customer Services they advised me to make an appointment without delay as the rates looked to be increasing. I did this, and within a couple of days my husband and I had signed the necessary papers and parted with $250 (quite hard to do).

After a very short time interest rates plummeted to their lowest in decades and we were absolutely furious. I rang the ASB and was told that extra staff had to be hired to handle the complaint calls.

About a month ago we had another call from an ASB "financial adviser." This time it was suggested that we increase our mortgage - "perhaps for an overseas trip." Yeah right!

C. Wright, Auckland.

Response: Barbara Chapman (ASB) replies: Mr and Mrs Wright should consider formally complaining to the bank as the scenario they outline is an example of the potential problems if a clear separation is not made between the giving of information and advice. It is for this reason ASB Bank has always made a point of giving customers information and leaving them to make their own decisions. If a customer wants advice, we feel the most appropriate person to seek it from is a qualified financial adviser.

All customers have the right to complain if they feel they acted on advice which led to them being financially disadvantaged. If we found something improper had occurred, we would make amends. If we did not we would inform them of their right to appeal to the Banking Ombudsman, who can make binding rulings against a bank.

In mid-1998 when Mr and Mrs Wright were making their decision, our managing director, Ralph Norris, was quoted in the Herald suggesting some easing of interest rates. Others were warning that rates would stay high.

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Complaint: A BNZ Devonport teller recently banked a freelance writer's cheque for me. They added an extra numeral on to it, making it $1700 rather than $700. When my employer, a Wellington magazine, complained bitterly of being robbed, I sent the bank a rocket.

"You'll have to pay us $16 to find out if it's our mistake or yours," said the manager of BNZ Devonport.

I said: "I object, I know it's your mistake."

They said "Tough. We'll whack out a $16 AP [automatic payment] to investigate anyway."

"Fine," I said. "If it's my mistake, I pay the $16. If it's yours, you pay me $16."

"Oh no," said the bank. "If it's our mistake, we'll refund you your $16 - it's our 'search fee' - but we won't pay anything if it was our mistake ..."

"That stinks," said I.

"Too bad," they said.

They whacked out the $16. It was their fault. They refunded the $16.

I'm still fuming!

Anne Gibson, Devonport.

Response: Carol Young (BNZ) replies: Once cheques are accepted at BNZ branches, they are physically forwarded to a central processing unit - used by several banks - to be processed. There is a real cost to the bank associated with tracing transactions, including cheques. BNZ informs customers of the trace cost before any trace is carried out (the minimum cost is $25). If a mistake is found and it has been caused by the bank or its processing unit, then the bank will, as we have done in this case, happily refund the full trace cost.

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Complaint: On Thursday, May 25, I went into the WestpacTrust branch in Hobson St, Auckland, to pay a traffic fine. The cashier refused to take my money. It seemed obvious that she was simply too lazy to count it, and wanted me to count it for her by sorting it into small plastic bags as per her instructions, and thus do her job for her.

I would have been sympathetic had the bank been full of customers, but there were none, apart from me. I had two tellers at my window - one arguing the point, the other one looking on. On my way out I heard them giggling when they could have been using the time to count my money. One can't help but wonder what they do to earn their money.

Bill Rigby, Auckland.

Response: Peter Thornbury (WestpacTrust) replies: WestpacTrust is an agent for the payment of fines. It is accepted banking practice that, when someone comes along with a large amount of coinage, you ask them to sort it into denominations, then you just weigh them. However, it is regrettable that a customer walked away from one of our branches not feeling happy.

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Complaint: Last week I contacted ASB in Ponsonby as the treasurer of my daughter's PTA to either rename the existing accounts or reopen new ones. One needs an appointment to do this. I phoned the call centre, as you can't phone your branch directly, and explained that I needed an appointment with my local branch that afternoon, a Friday.

He couldn't get through to the said branch, but later the branch rang back and said, "Well our appointments times are Tuesday and Thursdays from 10 am to 2 pm." I explained that I only have Fridays off and could not come in on Tuesdays or Thursdays. When they persisted, I closed both accounts and took them elsewhere. As much as I enjoy the Goldstein advertisements, what's the point of an expensive advertising campaign if they aren't interested in seeing you?

[Name withheld]

Response: Barbara Chapman (ASB) replies: The front desk at the Ponsonby branch does take appointments at 10 am and 2 pm when the meeting rooms are free. But behind that are five personal bankers who are available all day. I can only apologise and invite the correspondent to give me a call.

Next week: Your mortgage analysed

The banks - a Herald series

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