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One in five bank customers offered financial products they don't need - Consumer NZ

One in five bank customers have been offered financial products they don't need, according to Consumer NZ’s latest banking survey.

The most common products promoted to costumers included credit cards, increases in credit card limits, life insurance and personal loans.

Consumer NZ head of research Jessica Wilson said the majority of people who got these offers didn’t think the product suited their needs.

"Seven out of 10 consumers who were offered a new credit card or an increase in their card limit didn’t think it was a good choice for them," Ms Wilson said.

She said this kind of pressure from banks is a major concern and said it could potentially lead customers into debt or being sold a poor-value product.

"Banks have attracted a lot of bad press in the past 12 months for their selling practices and we would have expected to see a change in behaviour. However, our survey results don’t give us any confidence that’s happening," she said.

The survey also found only 47 per cent of consumers thought banks could be trusted and 68 per cent felt profits in the industry showed banks were charging too much.

"Overall, 60 per cent were happy with the service they were getting from their bank, on par with our 2018 survey," Ms Wilson said.

The Co-operative bank and TSB bank both were Consumer NZ’s "People’s Choice" winners in this year's survey, rating above average with scores of 87 per cent and 83 per cent respectively.

ASB and ANZ rated below average for customer satisfaction as well as for their product service, fees and value for money.

Satisfaction scores:

- The Co-operative Bank: 87%

- TSB Bank: 83%

- Kiwibank: 66%

- BNZ: 63%

- Westpac: 60%

- ASB: 55%

- ANZ: 54%

Person holding New Zealand currency, money.
File picture. Source: 1 NEWS


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