This morning, Chereè Kinnear reports Marama Davidson's surgery, no public media merger, and the Police Minister's youth crime goals. VIdeo / NZ Herald / Whakaata Māori
A woman whose elderly mother withdrew $300,000 in cash before her death is shocked to learn recordings of her discussing a complaint with the Banking Ombudsman were released to Westpac without her consent.
Westpac asked the banking watchdog to release the recordings earlier this year as it responded to a complaint alleging the Australian-owned company failed in its duty of care to a vulnerable customer.
It’s alleged that, in one instance, Westpac Masterton staff stuffed $23,000 into an 8cm-thick envelope and handed it to the pensioner, despite her not having a handbag.
Most of the money was never recovered and her family fear their feisty matriarch was the victim of financial elder abuse.
Westpac has defended its actions, saying staff queried the purpose of the cash withdrawals on several occasions. The customer was “confident and savvy with money”, but private about her finances and staff “ultimately acted on her instructions in processing the withdrawals”.
The woman’s daughter complained to the Banking Ombudsman this year and spoke to investigators by phone at least three times to discuss Westpac’s alleged failings.
She believed those conversations were private and confidential. She was mortified to learn last week that they had been recorded and handed to Westpac.
She told the Herald she was extremely cautious about her privacy and would never have consented to the information being released had she been consulted.
“I’m not comfortable with what’s happened. I regard it as confidential and not to be distributed to the other side.
“I’m not happy. For one, I wasn’t consulted. At least give me the opportunity to voice my opinion.
“To me, it’s a breach of privacy. It’s a conversation I had with someone who is supposed to be helping me with Westpac. It feels wrong.”
The woman questioned why Westpac wanted recordings of her private conversations with Banking Ombudsman staff.
“What are they looking for? I believe they’re looking for something they can hook on to. What else would they hope to get from the phone conversations that they don’t already have?”
A Banking Ombudsman manager contacted the woman this week and conceded she should have been consulted before the recordings were released.
He wrote that, while it was not standard practice for banks to request recordings of conversations with complainants, “this does sometimes happen, and from our perspective isn’t a sign that anything is amiss”.
Westpac told the Banking Ombudsman it wanted the recordings to better understand the complainant’s “expectation of resolution”.
“Given the passage of time and for transparency to ensure we are all on the same page, I’d appreciate a copy of your conversation with [the complainant] for our review, so we can best address her and her family’s concerns,” Westpac wrote.
Banking Ombudsman Nicola Sladden says her office is confident the complainant's privacy has not been breached.
The Banking Ombudsman manager quoted the watchdog’s privacy policy, stating the need to disclose “personal information” to relevant parties, and the fact that “transparency is important to promote natural justice”.
“If there is sensitive information that you do not want us to disclose to the bank, please let us know,” the policy states.
It also stipulates: “We provide you opportunities to control what information you provide to us and who it can be shared with ... We will ensure you are aware of how we intend to use and share your information when you give us consent and we will respect your choices.”
And though Westpac received the recordings in May, it had advised that it hadn’t listened to them yet, the manager told the complainant.
“Westpac have agreed not to listen to the calls, and instead to contact you to discuss matters with you directly.”
In a statement, Westpac – which earned nearly $1 billion in profit last year – said its investigators sometimes requested communications between complainants and the Banking Ombudsman Scheme “to understand the full context of inquiries and ascertain the nuance and detail of what a customer is asserting”.
Westpac said complainants consented to the scheme’s privacy agreement when submitting a complaint.
“The scheme’s operational guidelines provide that information given to one party can be supplied to the other unless the information was given in confidence.”
The spokesman confirmed Westpac was yet to listen to the recordings.
“If there has been a misunderstanding in the confidentiality of those conversations, Westpac is happy to return them in good faith.”
Staff at Westpac Masterton helped an elderly widow withdraw more than $300,000 in cash in the 34 months before she died. Photo / Google
The woman told the Herald she was sceptical about Westpac’s claim it hadn’t listened to the recordings and now planned to complain to the Privacy Commissioner.
The Herald asked Banking Ombudsman Nicola Sladden why the woman wasn’t consulted about the communications being released and what consideration was given to whether those conversations were considered private and confidential.
Sladden said complainants were advised that calls to the scheme’s 0800 number were recorded.
It was standard practice to share information between parties transparently to help resolve complaints in accordance with the scheme’s rules and the Privacy Act.
“Our privacy statement sets out how the scheme collects, uses and shares personal information. We are satisfied our practice complies with the Privacy Act.”
The Privacy Commissioner told the Herald the Banking Ombudsman Scheme needed to be clear about the purpose for which information was collected.
“And if they are recording calls to share them with third parties (such as Westpac), they need to be upfront about that.”
The scheme was criticised last month for breaching a scam victim’s privacy by sending details about the woman’s $300,000 loss to the wrong email address.
Lane Nichols is a senior journalist and deputy head of news based in Auckland. Before joining the Herald in 2012, he spent a decade at Wellington’s Dominion Post and the Nelson Mail.
