Lawyer accuses Government of doing billion-dollar backroom deal with banks ahead of court case
A lawyer is dismayed by a law-making process affecting ANZ and ASB court case. Photo / NZME
The Government is being accused of making a backroom deal with banks that could save them billions of dollars.
Documents released under the Official Information Act show officials quietly investigated making a retrospective law change that would affect a massive class action against ASB and ANZ.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Otago Daily Times
2 days ago
- Otago Daily Times
Consumer confidence up despite inflation worries
Image: RNZ Consumer confidence is improving but the economic outlook remains soft, with inflation expectations rising to the highest level in more than two years. The ANZ-Roy Morgan Consumer Confidence lifted six points to 98.8 in June, following last month's drop to 92.9. ANZ chief economist Sharon Zollner said a number of key indicators remained in negative territory, including the proportion of households who thought it was a good time to buy a major household appliance, at -7. In addition, annual inflation expectations rose slightly to 4.9 percent - the highest level since April 2023. "A few potential explanations seem possible," she said, including global tariff noise and concerns about energy prices. She said the increase was in line with food price inflation, which was running at 4.4 percent. "Household electricity prices are also rising as higher lines charges are passed on." However, she said a net 20 percent of consumers expected to be better off this time next year. "The economy is recovering. It's just taking a little longer than expected. "Households might be sceptical but domestic inflation is on the retreat, and that should lay the path for the RBNZ [Reserve Bank] to ultimately be able to shore up the economic recovery with a little more monetary easing."
RNZ News
2 days ago
- RNZ News
Consumer confidence up despite inflation worries
Photo: RNZ Consumer confidence is improving but the economic outlook remains soft, with inflation expectations rising to the highest level in more than two years. The ANZ-Roy Morgan Consumer Confidence lifted six points to 98.8 in June, following last month's drop to 92.9. ANZ chief economist Sharon Zollner said a number of key indicators remained in negative territory, including the proportion of households who thought it was a good time to buy a major household appliance, at -7. In addition, annual inflation expectations rose slightly to 4.9 percent - the highest level since April 2023. "A few potential explanations seem possible," she said, including global tariff noise and concerns about energy prices. She said the increase was in line with food price inflation, which was running at 4.4 percent. "Household electricity prices are also rising as higher lines charges are passed on." However, she said a net 20 percent of consumers expected to be better off this time next year. "The economy is recovering. It's just taking a little longer than expected. "Households might be sceptical but domestic inflation is on the retreat, and that should lay the path for the RBNZ [Reserve Bank] to ultimately be able to shore up the economic recovery with a little more monetary easing." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
2 days ago
- RNZ News
What's going on with home loan applications?
Photo: RNZ Mortgage brokers say banks are struggling to keep up with the more active property market - and borrowers are waiting weeks to hear back about their home loan applications. BNZ chief economist Mike Jones said earlier this week that about 15 percent more houses were selling than at the same time last year. Mortgage adviser Campbell Hastie said bank approval times had reached a "critical level" recently. He said most complaints were about the processing time it took for new loans. "However, we're also noticing error rates climbing on maintenance or loan restructuring-related tasks. This causes rework, often a long time after the error was made, and unwinding that error takes time - simple errors caused by workload pressure. It must be said that most of the staff on the adviser teams we deal with are great, but you can sense the pressure they're under." He said part of the problem could be the additional rules lenders were working with. Credit Contracts and Consumer Finance Act (CCCFA) changes were reversed over recent years because they were creating extra costs and compliance hurdles. But Hastie said some of the change was baked into the process and would realistically never be unwound. He said poor systems also did not help, and there had not been enough resource put into bank teams dealing with mortgage advisers. He welcomed news recently that ASB was adding to its team, but said it would take time to get those staff working a the level needed. "To prove the point, ASB's self-declared turnaround time was six working days as at 13 May but as at 11 June was 10 working days." ASB said the average turnaround time for home loans via mortgage advisers was five business days, or eight business days for people who were new to the bank. "We prioritise finance dated deals to help customers meet tight deadlines. Once we pick up the application, we're usually able to provide a decision to customers within 24 hours. For customers coming direct to ASB, same-day appointments with our home ownership managers are available, and we can provide a decision within 24 hours in most cases." ASB said it was rare for settlements to be delayed due to the process. ANZ said it did not favour direct channels over adviser channels, but it was seeing longer than usual turnaround times for advisers due to increased volume. Leigh Hodgetts, country manager for Finance and Mortgage Advisors Association NZ (FAMNZ), said delays could cause pressure and uncertainty at critical moments in the home loan process. "The drivers behind the wait times are largely a capacity and capability issue. Banks have been onboarding new staff, which is encouraging, but there's a natural learning curve that comes with training and upskilling. " She agreed with Hastie that there were hangovers from the CCCFA changes. "FAMNZ is calling for a more standardised approach across lenders to improve efficiency. The current inconsistencies between banks add complexity and unnecessary duplication, which only slows the process down further. We ask only that lenders treat each borrower with the same measure and same sense of urgency and fairness." Wellington real estate agent Mike Robbers said people now needed to allow 15 working days to get approval from a bank. "So finance conditions on offers are often taking up to three weeks to confirm. It's a long time for the property to be under offer 'subject to finance'." Squirrel chief executive David Cunningham said it was common for banks to be just starting work on deals lodged with them 10 or 15 days earlier. "You could argue that under-resourcing their broker teams (or under-investing in technology), is anti-competitive, and something the Commerce Commission should have looked at in the Inquiry into Competition in Retail Banking . "There are stories of brokers recommending that the customer go directly to the bank if it is urgent, rather than through a broker." BNZ general manager of home lending product James Leydon said its timeframes were at normal levels. "Our in-house home loan partners offer fast, personalised service, providing decisions within 24 hours for eligible applications once all required information is received and lending checks are complete. For broker-submitted applications, the current turnaround time is up to 10 business days. In practice, most decisions are made sooner - with average turnaround times around eight business days - as we prioritise based on factors such as meeting customers' settlement dates." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
