New Zealand bank employee blows whistle on 'morally disgusting' sales tactics

A bank employee has blown the whistle on what she calls "morally disgusting" sales tactics being pushed by her bank.

New Zealand currency (file picture).
New Zealand currency (file picture). Source: istock.com

She told RNZ about income protection insurance being sold to an elderly person, who because they were getting a pension, would never be able to claim it.

Then there is the emotional blackmail she said has been used on customers with children who are asked how they will feed their children if they are made redundant and do not have insurance.

The stories from the frontlines of the banking sector have come from a worker too afraid to identify themselves or the bank they work for, for fear they might be sacked for speaking out.

RNZ can reveal they work for one of the four big Australian-owned banks.

The worker said those who failed to meet sales targets for products like income protection insurance, life insurance and KiwiSaver funds were "performance managed."

The bank worker told RNZ the pressure on staff to sell more was intense and stressful and led to many taking sick days.

She talked about one elderly couple on a pension, who ended up paying $200 worth of premiums a fortnight to their bank for products, including income protection insurance.

She said many customers deferred to bank staff when they suggested they buy such products - and purchase them even if they did not need them - often returning to the bank later when they realised the expense.

RNZ found many people on the streets of Christchurch with stories about being given the hard sell by their bank, including Sha Shavz.

"I got a personal loan quite a while ago and they said [I should] get insured [with] life insurance, they were kind of predicting if I get cancer or some sickness that will cover it [my loan]. [They were] very insistent, very pushy."

Thomas Goldsmith's bank has also tried to upsell him.

"I went to apply for a credit card and she tried to sell me life insurance, home insurance, it just seems they get you while you're in there.

"So you're in there for something else and they try to sell you heaps of stuff, I think it's pretty annoying to be honest."

A budgeting mentor with the Care Waitakere Trust, Iain Davies, said income protection insurance was not something he would advise for most of his clients.

"We have clients who actually genuinely have to claim when they lose their job but their payments don't start for three months ... if you lose your job you don't want to wait, you need those payments to start now."

Mr Davies said he believed this sort of insurance was probably a better deal for the banks wanting to ensure continuing payments were made on mortgages, than it was for their customers.

RNZ approached the four main banks about the claims made by the unnamed bank worker.

ASB said it was interested in maintaining its customers' financial wellbeing and meeting its responsible lending obligations.

ANZ said only 25 percent of its incentives for staff were based on sales and it did not have sales targets.

BNZ said it was committed to ensuring customers were not sold products they did not need or could not afford.

Westpac said the examples provided did not lead it to believe that the bank worker was a member of its staff.

The Financial Markets Authority is reviewing banking practices in light of problems found with the Australian banking sector, which is the subject of a royal commission of inquiry.



Young NZ fur seal found with fishing line round neck is treated at Auckland Zoo

A young New Zealand fur seal is being treated for infection at Auckland Zoo after being found slumped on a rock ledge at Piha with discarded fishing line around its neck.

A young woman had spotted the injured seal and Department of Conservation rangers responded, DOC ranger Gabrielle Goodin told TVNZ1's Seven Sharp.

"Literally when we got out there I saw the seal and it was over this little rock ledge and I thought it was dead," Ms Goodin said.

Auckland Zoo vet Lydia Uddstrom said the fishing line has no give, so as the seal grows with it around the neck, the line cuts deeper and deeper.

"It's not a simple matter of cut the nylon off and just chuck him back out and good luck to you. It's really that follow up and making sure that we can control any infection," Ms Uddstrom said.

The vets work in silence, trying to keep the young seal as calm as possible while treating it at the zoo.

The case is a reminder of how a little piece of human waste can cause such pain to an innocent victim.

Fur seals are a conservation success story, with their numbers up.

But so is human interaction with them.

"We have a high population in Auckland, so it's managing that success. How can we make sure we still see a lot of seals, people are interacting with them properly and we can keep them from being injured from things like fishing lines," Ms Goodin said. 

Things are looking good for the young fur seal which has been showing improvement.

"We are hopeful that if we can get on top of this infection and everything else that's going on, he should be able to get out there where he belongs," Ms Uddstrom said.

Seven Sharp’s Lucas de Jong visited the mammal at the zoo. Source: Seven Sharp

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John Armstrong: As Labour fast loses the plot, Sunday's moment of coalition unity was priceless

There’s no show without punch, and although Winston Peters did not say much, he said enough. Unlike the Prime Minister who was something of a disappointment.

Last Sunday’s carefully stage-managed display of unity by Jacinda Ardern and her deputy was not so much a case of fake news as one of fabricated news.

It was somehow befitting of the barmy politics emanating daily from the Government benches in Parliament that the coalition Government should half-celebrate its 12-month birthday having been in the job for just on 11 months.

A carefully-chosen audience was corralled on Auckland’s AUT campus to hear — or rather endure — Ardern taking close to half-an-hour to spell out her Government’s 12 priorities.

1 NEWS' Jessica Mutch and Benedict Collins give their opinions of the Acting Prime Minister who ran the country during Jacinda Ardern’s maternity leave.
Winston Peters. Source: 1 NEWS

Admittedly, it is difficult to inject excitement into a discussion of the virtues of intended alterations to the structure of the various Cabinet committees which meet weekly in the Beehive.

But one further priority would be finding a new speech writer for the Prime Minister before someone falls asleep and drowns in the verbiage. Or simply dies of boredom.

The said wordsmith's job is probably safe, however. The strict instruction from upon high would have been not to include the merest morsel of anything that those listening might find interesting — and which would detract from the whole purpose of the occasion, specifically the need for the Government to project an image as rock solid unified.

The political pantomime had one overriding objective — convincing an increasingly sceptical public that although Ardern and Peters might not always be on the same page, they are still capable of trading smiles on the same platform after 11 months of jostling one another.

While the Labour-New Zealand coalition has witnessed sporadic bouts of internal guerrilla warfare in recent times and principally on New Zealand First’s part, it is vastly over-dramatising things to suggest this so far occasional rebellion could become full-blown civil war.

So there was no chance of Peters going AWOL last Sunday. It would, however, have helped the coalition’s cause considerably had he uttered the immortal words "of course she's driving the car" during the earlier stages of the developing friction between the partners in Government. He was unwilling on Sunday to stretch the metaphor any further. But when it comes to back-seat driving or driving backwards, Peters is a master.

He has not taken on board any perceivable role as a back-room fixer for the coalition despite such a role having the capacity to alleviate some of the huge pressures weighing on Ardern’s shoulders.

He has instead exploited her inexperience as Labour’s leader and the fact that she spreads herself thin to bolster his party’s leverage within the coalition.

It is such game-play good that threatens the Government’s stability. It is not so much that the partners might clash over policy. As Ardern repeatedly notes, the coalition comprises three parties. There is always going to be disagreement over policy.

What matters is how such disputes are handled by the respective party leaderships - John Armstrong

What matters is how such disputes are handled by the respective party leaderships; whether, to use the parlance, they act on the basis of good faith and no surprises.

Ardern’s response to suggestions of disunity is to pretend there is none when she is so questioned. That is not credible.

She has now sought to brush off those claims made by her opponents by creating a distraction through repackaging her party’s priorities and relaunching them as a "coalition blueprint" under the title of Our Plan.

It would not have taken Labour’s spin-doctors long to dream up that title. It is the exact same one as used by National during the John Key-Bill English years in their similar quest to turn New Zealand into Utopia.

The only difference between Labour’s and National’s respective efforts was that Key was dismissive of such "vision documents". They might be useful in listing goals. They rarely provide detail of the means to be adopted to reach those goals. The day-to-day pressures of political life inevitably result in the prime minister of the day focusing heavily on short-term political management. Concentrating on the long-term can always be postponed to another day.

National’s various versions of vision have accordingly sunk without trace. That experience would have been a factor in Simon Bridges’ acidic observation that there was nothing in the long list of platitudes, banalities and truisms in Ardern’s blueprint which he would find hard to swallow. He isn’t wrong.

The producers of Ardern’s massive missive may have feared the same fate awaits their product as afflicted National’s equally turgid equivalent, creation.

That hurts. But Bridges is making the pertinent point that Ardern’s claim that her plan amounts to a "shared vision" of the three parties in her governing arrangement is utterly meaningless.

All it says is that the three-party grouping stretches so far across the political system that National can be accommodated with room to spare.

That makes it hard to keep the whole show on the road at the best of times.

With ministers falling like nine-pins, bureaucrats thinking nothing of splashing out $1.5 million on a justice policy summit and private consultants growing fat on the tidy sums to be made from servicing the plethora of working parties and task forces doing the work that career public servants are arguably better left to do, Labour is fast losing the plot.

But never mind. Ardern and her colleagues got what they wanted. That was a minute or two of coalition unity at the top of the six o’clock news. Given Labour’s growing malaise, that’s priceless.

The Prime Minister gave details of the Government plan during a speech in Auckland. Source: 1 NEWS

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Man arrested after fatal stabbing in Upper Hutt

A man has been arrested following a man's death in Upper Hutt this afternoon after being stabbed.

Police have launched a homicide investigation.

Emergency services were called a scene on Golders Road in Upper Hutt shortly after 4:30pm and despite their best efforts to revive the victim, he was pronounced dead at the scene.

Police arrested a male nearby the scene of the assault and are currently speaking with him.

"There is not thought to be any risk to the public at this time, however the Police investigation into what happened continues," Detective Senior Sergeant Martin said.

Police car Source: 1 NEWS


The Hastings' Four Square that sold four winning first division Lotto tickets

Hastings was the lucky home to four winning first division Lotto tickets last night.

Flaxmere's Scott Drive Four Square was the winning shop and TVNZ1's Seven Sharp meet with the owner.

"We have five first division winners in Flaxmere, and we have got four of them," owner Becky Gee said.

"Usually one shop gets one but one shop got four, unbelievable."

Last night there were 40 first division winners, who each get $25,000.

Ms Gee says she doesn’t know who the winners were yet, but says hopefully she’ll find out soon.

"Hopefully it’ll go to people who need it, to pay a lot of bills."

Lotto confirmed that one person purchased four of the winning tickets, which means they take home $100,000.

It turns out Scott Drive Four Square is where to buy a winning ticket. Source: Seven Sharp