Mix-up left former employee with company’s card debt

Transferring credit card debts,
Robert was approved for a business Mastercard. His employer told him he would be personally liable for any amounts owing on the card, but he said he was not told what the implications of this would be if he left his employer. In May 2017, Robert had left his employment. He contacted the bank because he discovered his former employer was making only minimum repayments on the outstanding card balance. The bank agreed that Robert would not be personally liable for the outstanding debt, and the matter was closed.
February 2022

Robert went to live in Australia. On his return to New Zealand in April 2021, he received a final warning notice from a debt collection agency for the credit card debt. The bank had incorrectly left the debt on Robert's profile in 2017, and an automated process meant the debt was incorrectly referred to a debt collection agency. While Robert was overseas, the agency had made numerous unsuccessful attempts to contact him. Robert had a default listing lodged on his credit report, although it was subsequently removed.

Our investigation

The bank had already written off the debt and removed the default listing. In the meantime, it had also offered Robert $11,500 in compensation for the stress and inconvenience he had experienced.


Robert accepted the offer.

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