A bank has offered to settle with a customer for $9,100 after failing to notify them a quote they were provided would only last a few days.

The customer wanted to transfer their mortgage to another bank. They asked their existing bank what the early repayment fee on their loan would be. The bank quoted $8,000.

The customer checked several times before repaying the mortgage and transferring the loan. Each time the bank confirmed the quote. When the customer transferred the mortgage, they were charged a $17,000 early repayment fee.

The bank told the customer that the quote had only been valid for a few days, but offered a goodwill gesture payment that the customer rejected.

The customer complained to the Banking Ombudsman.

The Ombudsman concluded that the customer had not been told the quote was only valid for a few days and relied upon the repeated confirmations. In response the bank offered an $8,600 refund, and $500 goodwill payment, to settle the matter.

Customers are entitled to rely on the information provided to them by their banks. If banks fail to provide crucial information, they may be liable for the resulting consequences.

If you think a bank has failed to provide, or provided incorrect, information that you have acted on, it pays to consult a professional experienced in the area.




Alan Knowsley
Litigation Lawyer
Wellington


If you are a New Zealand Super Gold Card Holder (Australian Senior Cards do not qualify) we will give you a 75% discount off our initial 1 hour consultation fee. We will also give you a 17.5% discount off the first matter we handle for you and then 12.5 % off any subsequent matters for you.  These discounts relate to your personal matters only (i.e. not business or organisational matters).