Discussion Paper - Report Summary

December 2000

0800 Bankline Report

In 2000, the Ministry of Consumer Affairs undertook a project to provide further assistance to banking consumers. This included an 0800 information service called Bankline supported by an internet-based database called Bankcheck.

The identified purpose of Bankline was to provide advice to consumers to ensure they knew how to:

• minimise their bank fees
• access and take advantage of the banking options available to them
• access help with banking problems.

Bankline had a secondary function of gathering information. In particular the Ministry sought information about:

• how much consumers knew about managing bank fees and about resolving problems with their bank
• what kind of impact banks’ behaviour was having on consumers
• how accessible to bank customers was information about how to make a complaint.

The information gathered through Bankline came from a self-selecting group of consumers rather than a randomly generated sample group. As such it provides a snapshot of views from consumers motivated to share their banking experiences with the Ministry. This report reflects the views of these consumers only. Their stories have not been checked for accuracy and are presented as told to the Ministry. No firm statistical conclusions can be drawn from this data.

Key issues

Consumers were concerned that the rapid introduction of technology in the banking industry had been accompanied by ever increasing bank fees and a decline in service and flexibility.

In summary, consumers would generally be happier with the banking industry if:

• bank fees were lower
• banks provided an explanation of how bank fees reflected costs
• banks itemised fees on bank statements
• banks disclosed specific fees for transactions fully before the transaction, including overdraft honour fees and fees for using another bank’s ATM
• banks which operate an ‘overdraft honour fee’ system made it easier for consumers to opt out of this system
• banks ensured all fee exemptions were given automatically to all eligible consumers or, failing that, banks advertised customers’ responsibility to inform banks of any changes which may qualify them for a fee exemption
• banks provided consumers with basic information about how cheques, automatic payments and direct debits work, including clearance periods and consumer responsibilities
• banks trained all their staff so they had a comprehensive knowledge of bank products and could assist customers
• banks increased services in rural areas
• failing an increase in rural services, banks made more effort to make banking easy and cost effective for rural customers
• they were able to talk to a local branch by telephone
• banks valued their customers’ time by cutting waiting times in branches
• banks valued their customers’ time by reducing waiting times on telephones
• banks adapted their systems to provide for the needs of consumers with disabilities
• banks made information about established dispute resolution processes more accessible, including ensuring bank staff knew of and could provide contact details for the Banking Ombudsman.

Report - full text

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