Home New loan Sharp rise in complaints to banking watchdog over new ‘KFC, Uber, pregnancy’ lending rules

Sharp rise in complaints to banking watchdog over new ‘KFC, Uber, pregnancy’ lending rules

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Kim Anderson-Robb explains why a loan to renovate her home was turned down. Video / Otago Daily Times

The Banking Ombudsman Scheme says it has seen complaints about loan delays double since the borrowing rules came into effect.

The Consumer Credit and Credit Agreement Act (CCCFA) requires banks to take a close look at the spending habits and personal finances of mortgage applicants.

Banking Ombudsman Scheme chief executive Nicola Sladden said he had seen a recent increase in complaints about loans, particularly about delays and banks not acting as expected.

Next month, the Ombudsman will publish data on banking complaints from October to December 2021.

“It will be interesting to see what issues consumers have raised with banks,” she said.

Yesterday the Otago Daily Times reported that two separate women in Dunedin were asked by their banks, before the CCCFA rules came into effect, whether having children was part of their five-year plans.

When asked if this was appropriate for banks, a spokesperson for the Office of the Privacy Commissioner said it was important that agencies only collect people’s personal information for a clear purpose.

Organizations should carefully consider whether they need the information they request, as the amount and type of personal information to be collected may differ in different contexts, he said.

The Board of Financial Regulators is currently reviewing whether the changes to the CCCFA rules are being implemented as planned.