Following on from Cover Me…
Throughout ANZ New Zealand has relied on the Banking Ombudsman as the linch-pin of its defence. It really needs a better linch-pin. The Banking Ombudsman (Nicola Sladden firstname.lastname@example.org) and the Chair of the Banking Ombudsman board (Miriam Dean email@example.com) have consistently avoided the issues at the core of this dispute.
All off the record, of course, like anything is ever really off the record, but I understand that some of Nicola’s responses to media inquiries have not been consistent with her formal findings in this case. Once the weak link goes…
These are the questions that Miriam and Nicola do not want to answer and that should be put to them:
ANZ New Zealand’s guarantee and loan documents include guarantees as forms of security. The Code of Banking Practice (until the May 2018 version) says that banks have to provide any party providing security of the details of any lending against that security. This includes
- the annual interest rate and whether it may be changed during the period of the credit facility;
- all fees and charges (including government charges and taxes);
- the period for which the credit facility is available;
- the repayment terms, including any terms relating to early repayment costs.
If banks take the Code of Banking Practice seriously – and it’s the Banking Ombudsman’s job to make sure that they do – why didn’t ANZ tell me about all the extra lending to my ex-wife’s company?
Why was the Banking Ombudsman not concerned when:
- ANZ New Zealand said that it had no authority to disclose information to me – when it did have that authority and a previous determination by the Privacy Commissioner also said that it should disclose this information.
- ANZ New Zealand said that the Credit Contracts and Consumer Finance Act 2003 prevented disclosure to me. The truth is that this Act, by definition, only covers personal lending and does not even mention company lending.
- ANZ New Zealand made up information that it attributed to the Code of Banking Practice to support its position that it did not have to disclose details of additional lending to guarantors.
The Code says that ANZ New Zealand can only provide credit or increase credit limits when the information available to it leads it to believe the customer will be able to meet the terms of the credit facility (that means, repay the loan). The Banking Ombudsman has held banks accountable under this obligation in its case notes.
Why didn’t the Banking Ombudsman consider this obligation when ANZ loaned hundreds of thousands of dollars to a small company with a weekly income of less than $200 (that’s what ANZ New Zealand CEO Dave earns in about 8 1/2 minutes)?
The Code requires banks to act fairly and reasonably, in a consistent and ethical way.
Nicola and Miriam, could you please tell us how ANZ New Zealand’s conduct in this issue could ever be considered fair, reasonable or ethical? Yes, we might give ANZ New Zealand points for consistency but that’s not always a good thing. ISO 9001 just means you can do things badly all the time…
…and just as an aside, I think we can give ANZ New Zealand a great big ‘F for Fantastic‘ on each of those seven principles…