Farmers 'frustrated' at Rabobank's decision to close accounts

Rabobank says those affected are a small proportion of its overall customer base. Photo / File

Federated Farmers says it has received about 80 emails from members frustrated at Rabobank's decision to close accounts of some customers who are no longer borrowers.

But the bank says those affected are a small proportion of its overall customer base and that it intended to discuss banking arrangements with customers and "help them move their account to an alternative bank who can better meet their transactional banking needs".

It comes after the Chronicle reported Horizons regional councillor Bruce Gordon got a letter from Rabobank advising he had 20 days to move his transactions elsewhere because the Netherlands-owned bank had decided it would offer transactional banking services primarily to customers who had lending with it.

The letter had caused "considerable stress and anger", a Federated Farmers spokeswoman said

Federated Farmers said the 20-day timeframe the bank offered was inadequate and that it took time to find a suitable bank and then to make all the necessary arrangements, such as amending accounting systems, automatic payments and direct debits.

But a Rabobank spokesman said it gave everyone who asked for it more time to make the transition.

The bank said it understood the change had been disappointing for a small portion of customers and acknowledged its communication could have better emphasised the flexible approach it was taking to the timeframe.

"If they haven't already, we'd strongly encourage any impacted Rabobank customers to get in touch to discuss any support we may be able to provide," a statement said.

It said Rabobank was committed to supporting the agricultural sector for the long term and is one of the few banks currently growing its share of the market.

"We have also consistently rated the highest of all banks in Federated Farmers banking survey in terms of customer satisfaction and customer communication."

Banking Ombudsman Nicola Sladden has said banks need to have a good reason for closing customers' accounts- but that reason could be a commercial reason.