Consumer NZ not happy with 'pressure selling' tactics in banks

Newstalk ZB ,
Publish Date
Wednesday, 24 April 2019, 6:59PM
The Consumer NZ survey had damning results for the banking industry. (Photo / NZ Herald)

Consumer NZ wants better regulation of the banking industry.

It's carried out a survey which shows one-in-five bank customers are being offered products they didn't ask for, and often don't want.

Head of Research Jessica Wilson says credit cards, increases in credit card limits, life insurance, and personal loans are the most commonly promoted products.

She says a similar survey was conducted last year that produced similar results.

"What we were hoping to see was that there'd been some change in bank behaviour given the publicity over the past year that has attracted a lot of bad press for the industry."

Wilson told Heather du Plessis-Allan that they are concerned about the pressure selling. 

"We're talking about instances in which young consumer goes into a bank wanting to sign up for Kiwisaver, ends up being sold a life insurance policy that's got no value for them." 

She says that these complaints are periodical. 

However, Bankers' Association chief Roger Beaumont says a Government review of the industry last year found no widespread issues.

He told Heather du Plessis-Allan that just because a bank offers you a product you haven't asked for, that doesn't mean it is a bad thing. 

Wilson says that their results are not telling them that.

Early Edition

Early Edition

5AM - 6AM