Limit on claims raised

By KEVIN TAYLOR

The ceiling for complaints to the Banking Ombudsman and the amount of compensation banks can be required to pay have both been raised.

Ombudsman Liz Brown can now consider complaints worth up to $120,000.

The previous limit of $100,000 was set when the office was established in 1992.

The limit for complaints about bank-provided insurance has been lifted from $100,000 to $150,000.

The compensation that the Ombudsman can require a bank to pay to a complainant for inconvenience, including issues such as stress and embarrassment, has also been increased, from $2000 to $4000.

The New Zealand Bankers' Association set the new limits.

Brown said insurance claims increasingly involved large amounts of money and the move was in line with overseas trends.

The Australian Banking Ombudsman has a limit of A$150,000 ($181,200) on all claims.

The Office of the Banking Ombudsman has started a website so people can make complaints online.

Brown said the office had realised the need for the website.

There had been an increasing number of foreign complaints, including some about issues such as money transfers and New Zealand-issued credit cards.

The website would make it easier for people overseas to lay a complaint, she said.

Last year, the Office of the Banking Ombudsman had 1100 formal written complaints and dealt with more than 3000 phone inquiries.

The office fully investigated 360 complaints.

Bank Ombudsman