Dealing with financial service problems

Did you find scary fees in the fine print of your hire purchase agreement? Got a problem with your bank or insurance company? Here's how you can take action.

"It's important to know there's a process you can use if you have a complaint about the service you receive from your bank, insurance company, financial advisor, or other financial services provider - and it's free," says Bernice of Stratford Citizens Advice Bureau.

"We see a number of people experiencing issues with unfair credit or loan contracts, insurance claim decisions, credit card fees, or dodgy financial advisers. We help them work out what their options are, and help them with the complaints process where it's appropriate."

Every financial service provider must have an internal disputes resolution process, and belong to a Financial Services Disputes Resolution scheme.

If you've got a complaint the first thing to do is to approach the service provider and use their own complaints process.

If this doesn't solve your problem you can apply to the Financial Services Disputes Resolution scheme which the service provider belongs to. It's important to know that there is a time limit for using the scheme. You have two months from the date of receiving a "letter of deadlock" or final decision letter from the service provider's.

"It can be hard to tell which Scheme a particular service provider belongs to", says CAB "but you can always ring 0800 Loan Stress (0800 562 6787) and they will put you through to the right Scheme."

These Schemes can help with claims of up to $200,000 and can deal with, for example:

• 
  a financial service provider not complying with their obligations,
• 
  a financial service provider not properly disclosing fees, terms and conditions,
• 
  complaints about the service generally
• 
  a financial advisor providing advice which they are not authorised to give.

"Unfortunately they can't deal with complaints about poor financial investment performance.

"If your complaint can't be addressed by the scheme then the CAB can help you look for other options, like going to the Dispute Tribunal."

She adds that if the Scheme decides in your favour, the actual remedy you'll receive will vary depending on the Scheme and on the situation. You could be awarded a lump sum payment, your contract could be amended, or you might receive a formal apology from the service provider.

"If you have a problem with your bank, lender, insurance company or other financial service provider, but aren't sure what to do about it, speak to us."

Phone the Stratford CAB on (06) 765 5250 or toll free on 0800 367 222, visit them between 10am and 1pm weekdays under the clock tower on Broadway. There is also information about financial service complaints on www.cab.org.nz.