Banking Ombudsman releases mortgagee disputes guide

A new disputes resolution scheme for complaints about financial advisers may offer only half the maximum compensation available under other existing schemes such as the Banking Ombudsman and the Insurance and Savings Ombudsman.

The Ministry of Consumer Affairs is proposing to set a $100,000 cap on compensation awards under a new disputes resolution reserve scheme to be introduced mid-2010.

Banking Ombudsman Liz Brown says she hopes to receive confirmation from other banks with clients in ING’s frozen funds that they will also allow their customers to go to the Ombudsman if they accept compensation from ING New Zealand.

ANZ has told investors that they can accept a payout offer and still complain to the Ombudsman despite a ‘full and final settlement’ clause in the offer preventing them from taking any other claims if they accept the money.

Commerce Commission director of competition Deborah Battell has been appointed the new banking ombudsman.

Ms Battell takes up the position on July 21. She replaces Liz Brown, who is retiring after a 14-year tenure.

Ms Battell previously held the director of fair trading role at the Commerce Commission and has worked for KPMG as a strategic management consultant, in planning and development for Radio New Zealand and as a senior researcher at the former Broadcasting Corporation.