BNZ customers demand compensation; some might even get it
Walk on by: BNZ's ATMs were not working for a little over three hours thanks to a system failure.
Annoyed BNZ customers are calling for compensation after its systems crashed leaving eftpos cards and ATMs out of action.
"What kind of recompense is BNZ going to be offering its customers after this mess which has ruined so many people's Saturday?" customer Sam Fenney asked the bank on Facebook?
The bank's systems, including eftpos, online banking, and its ATMs, were out of action for over three hours, but are now functioning again.
Banking expert Claire Matthews from Massey University said if customers had suffered a financial loss as a result of the BNZ systems failure, they could have a claim.
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"If they have suffered direct financial loss, the bank would need to compensate them for that. Absolutely."
Banking Ombudsman Nicola Sladden said unhappy customers should complain to BNZ, and if their complaints were not resolved, they could lodge a complaint with the Banking Ombudsman Scheme.
But claiming compensation for embarrassment, for example after having a card declined in a shop, was less likely to succeed.
"Morally there is an argument the BNZ has some duty to provide compensation," Matthews said.
But it would be a gesture of goodwill, she said.
BNZ's ATMs were out of action causing frustration for the bank's customers.
People who felt strongly they should be compensated could complain to the bank directly and seek compensation.
If compensation was refused, customers could then complain to the Banking Ombudsman, Matthews said.
The Banking Ombudsman could order compensation for embarrassment or inconvenience.
Ombudsman Nicola Sladden said when investigating claims she looked at banks' terms and conditions which often limited the liability of banks for losses suffered by customers using their services.
When people sign up as a bank customer, they agree to a bank's general terms and conditions, which are a legal contract between the bank and each of its customers written by the bank's lawyers.
The BNZ's general terms and conditions said: "You indemnify us against any BNZ losses relating to the products or services, and/or your relationship with us, except if the BNZ losses result directly from our fraud or negligence," BNZ's terms and conditions said.
The contract limited BNZ's liabilities to customers.
"We will not be liable to you for any Loss... caused by circumstances outside our control, including machine failure, problems with any system or network, or industrial action."
It continued: "Nothing in these Terms limits our liability for acting fraudulently or excludes or limits our responsibility and liability to you under the Consumer Guarantees Act 1993, or to the extent that we are otherwise unable to exclude or limit it by law."
As well as looking at the terms and conditions, Sladden could also look at the "broader" circumstances of a claim, which could include how effectively a bank had communicated with customers.
"It's absolutely imperative for banks to take steps to contact people to avoid these embarrassing situations," Sladden said.
BNZ's communication has been criticised by some of its customers.
George Hildred said: "Disgusted at lack of notification of the fault. Why not a text to at least tell people to minimise embarrassing situations and inconvenience? Not at all impressed."
Some BNZ customers may not wait for compensation.
Shelz Nicholson told the bank through a post on its Facebook page: "Apologies aren't going to be enough to compensate this unfortunately.a lot of embarrassed and helpless people right now.
"I phoned BNZ who told me to go and borrow money off someone who didn't have a BNZ account! That was their solution? No accountability. Changing all banking over come Monday."
- Stuff
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