BNZ compliance with Credit Contracts and Consumer Finance Act disclosure requirements under the spotlight after the bank self-reported to the consumer watchdog

BNZ compliance with Credit Contracts and Consumer Finance Act disclosure requirements under the spotlight after the bank self-reported to the consumer watchdog

The Commerce Commission is investigating BNZ's compliance with Credit Contracts and Consumer Finance Act (CCCFA) disclosure requirements.

A Commerce Commission spokeswoman told interest.co.nz the consumer watchdog is investigating issues relating to BNZ’s compliance with disclosure obligations that it self-reported to the Commerce Commission last year.

"As the investigation is ongoing we cannot comment further at this time," the Commerce Commission spokeswoman said.

This probe comes after BNZ announced in December it was refunding more than 10,000 customers about $3.8 million due to what the bank described as "errors made with documentation" going back to 2015 following changes to the CCCFA. The average refund size was $375, BNZ said, although it would vary from customer to customer. 

A BNZ spokesman said the refunds came after BNZ either did not send out documentation to customers quickly enough, or some information was missing or incorrect.

"We voluntarily made the Commerce Commission aware of these issues and we’ve been proactively engaging with them on these matters. However as it’s an ongoing investigation, we’re not able to comment further at this time," the BNZ spokesman said.

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