Bank not required to offer banking services to customer outside New Zealand

Home Guides & cases Case notes Bank accounts - 88213

Bank not required to offer banking services to customer outside New Zealand

Categories:

Account information,

Summary:

Flynn had transaction accounts and a home loan with the bank. In 2024, he moved to Russia with his partner, who was a diplomat. Upon arrival in Russia, he discovered he was unable to access his internet banking. He contacted the bank, which said it did not allow customers to access any banking services from Russia. It said it had a policy of not allowing customers to access any banking services from certain countries, including Russia. Flynn complained that he could not take care of any of his financial affairs without such access. The bank offered read-only access to internet banking, along with $2,000 towards the cost of arranging a power of attorney to manage his affairs while in Russia. Flynn rejected the offer, saying the bank's policy was unfair, unreasonable and made him feel like a criminal.

Published:

October 2024

Our investigation

We found the bank had a clearly disclosed policy of not allowing customers to access any banking services from certain countries, including Russia. This policy did not breach an obligation owed to Flynn – banks are not obliged to provide banking services to customers outside New Zealand – a point stated in the terms and conditions of Flynn's accounts.