KiwiSaver complaints on the increase

The KiwiSaver quick guide can be found at: https://www.bankomb.org.nz/news-and-publications/quick-guides/item/kiwisaver#.U18uQPmSzNs

media release – 29 April 2014

KiwiSaver complaints on the increase

The Banking Ombudsman Scheme has had a 51% increase in KiwiSaver cases compared to last year and expects complaints to continue increasing as the value of KiwiSaver savings grows and participant banks take more of the market.

There were 59 KiwiSaver complaints to 31 March, compared with 39 for the same period the previous financial year.

Banking Ombudsman Deborah Battell says she has issued a new guide on KiwiSaver so people know how to go about making a complaint. The guide covers who to complain to, the main areas of complaint, and how the Banking Ombudsman Scheme approaches compensation.

“The majority of complaints are about the inability to withdraw funds, especially on hardship grounds. The quick guide sets out the circumstances in which funds can be accessed – financial hardship, purchasing a first home, serious illness, or permanent move overseas.

“The guide also deals with how we compensate customers where we consider inadequate information about KiwiSaver has been provided,” Ms Battell said.

She said some complainants are not aware the dispute resolution scheme they complain to will be different depending on whether the issue is about a decision made by the scheme provider or its trustee.

The quick guide will be continually updated as it is likely the types of complaint will evolve over time as the investment becomes more valuable.

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