Frequently asked questions
1. How can the Banking Ombudsman scheme help?
We may be able to resolve your complaint quickly and informally by discussing it with you and the bank.
If the complaint is not resolved informally and the Banking Ombudsman finds that a bank has acted wrongly, she can require the bank to pay compensation – up to $200,000 for the direct loss or damage it has caused, and up to $6,000 for inconvenience (stress, embarrassment etc).
If the Banking Ombudsman thinks that the bank has treated you fairly, or has not caused you loss, damage or inconvenience she will write and tell you so, with her reasons.
2. How do I make a complaint?
3. How long will the investigation take?
It depends on the complexity of your complaint and how quickly we can get all the necessary information. More than 50% of complaints can be resolved within three months of our receiving them but more complex complaints can be quite time consuming. You should be prepared to allow time for a thorough investigation to take place. Very occasionally, it may take more than a year to complete an investigation. We will always keep you informed about progress.
4. Is there a charge?
No. Our service is free.
5. Is my complaint too small?
Every complaint is taken seriously. No complaint is too insignificant and no claim is too small.
6. How independent is the Banking Ombudsman in making decisions?
The Banking Ombudsman is impartial and decides each complaint on its own merits. The Banking Ombudsman is independent of the banks, consumer organizations, and of government.
7. Do I have to accept the Banking Ombudsman’s decision?
No, you do not have to accept any decision the Banking Ombudsman makes. You are always free to go to court or the Disputes Tribunal or any other complaint resolution body, if you wish.
8. What happens if the bank does not accept the Banking Ombudsman’s recommendation?
If you accept the Banking Ombudsman’s final recommendation but the bank does not, you may ask the Banking Ombudsman to make an Award. An Award is binding on the bank and the bank will have to pay whatever compensation the Banking Ombudsman’s Award requires of it. Awards are rare as banks nearly always accept the final recommendation.
9. Does the Banking Ombudsman investigate all complaints personally?
When the Banking Ombudsman decides to investigate a complaint it is assigned to an investigator. The investigator will be your main point of contact with our office and will obtain all the necessary information from you and the bank to assist in resolving your complaint. If your complaint is unable to be resolved informally with the assistance of the investigator, the Banking Ombudsman will personally review the complaint and will make a decision on it.
10. How do I make a complaint if I can’t speak English or I am disabled or I can’t use the usual process for other reasons?
Call us, or ask someone else to call us, for information about what we can do to help. We can arrange translation and interpretation services, communicate mainly by phone or email, arrange to meet you (resources permitting) or otherwise adapt our processes to make sure you can get a proper consideration of your complaint.
11. Do I need a lawyer?
No. The Banking Ombudsman scheme is a free and informal alternative to going to court. In most cases you should not need any legal or other expert assistance. The Banking Ombudsman decides if she will uphold your complaint by looking at the facts – not at the way you present your complaint. If you do decide to employ a professional to present your case for you (for example a solicitor) then you will almost certainly have to pay their costs yourself. You should not expect to get these costs back, even if the Banking Ombudsman upholds your complaint.
12. Is there a time limit for making a complaint?
Sometimes. If the bank has sent you a letter giving you its final decision and telling you to come to the Banking Ombudsman’s office within two months, you will have to send your complaint to us within two months of the date of the bank’s letter.
If you have known about your complaint for more than twelve months before making your complaint to the Banking Ombudsman, the Banking Ombudsman may decide not to consider it.
13. Can I complain if I no longer have key documents relevant to my complaint?
Yes. Banks must give us all the information we need to investigate your complaint. This includes account statements, loan documents and notes written by bank staff. However there may be difficulties if you do not have key documents that are not bank documents, such as correspondence with third parties.
14. Is my complaint confidential?
Yes. We will have to talk to the bank about it, but we will not go to anyone else for information about you unless you consent. The Banking Ombudsman is prohibited from disclosing any information that could identify you or the bank.
15. How is the Banking Ombudsman scheme funded?
The costs of running the Banking Ombudsman scheme are met by a levy on the member banks. There is a contract between the Board of the Banking Ombudsman scheme and each member bank, under which the bank has an obligation to pay the levy required. The Banking Ombudsman herself has nothing to do with these arrangements.
16. What is the Board of the Banking Ombudsman scheme and what does it do?
The Board is the governing body of the Banking Ombudsman scheme. Its main function is to make sure the Banking Ombudsman can operate completely independently of banks, consumers and government. There are five members; two representatives of consumer interests, two bank representatives and an independent chair. For more information about the Board and its functions, see About us