News Asia06 Oct 2025

New Zealand:Why don't consumers complain?

| 06 Oct 2025

Fewer than one third of financial services customers are confident that they know how to make a complaint about their financial service provider according to a new report by New Zealand's Financial Markets Authority - Te Mana Tatai Hokohoko (FMA).

The six-page information sheet based on the research conducted by FMA said those who said they would have liked to complain but did not, cited barriers such as doubts about the outcome, not knowing how to complain, and perceptions of difficulty. 

FMA director - deposit taking, insurance and advice Michael Hewes said all financial service providers need to ensure consumers know how to make a complaint, how their complaints will be dealt with and where to go if they are unsatisfied with the result. 

The information sheet says financial service providers should be visible, easy to complain to, accessible, fair, transparent and proactive when dealing with complaints. They should show that lessons learned from complaints are integrated into their business processes to improve outcomes for all consumers. 

Mr Hewes said, “Companies are burying complaints processes deep on their websites, requiring details a customer may not have to hand and treating customers in a defensive and dismissive way. We strongly encourage companies to review their complaints processes to ensure they are easily accessible for consumers and fit for purpose.    

“The findings in our research support the FMA’s focus on ensuring complaints processes are accessible, fair, and effective, not only by making it easy to complain, but also by understanding and addressing the reasons some consumers don’t.” 

The information sheet poses six key questions for the financial services providers: 

  1. Can you point to how you are set up to resolve complaints, so that customers feel listened to and treated fairly?  
  2. Do you have processes in place to take on board lessons learnt from complaints?
  3. Are your complaints processes well signposted?   
  4. Are customers given the impression that you welcome the opportunity to put things right and understand where to improve?   
  5. Are customers satisfied with the process, is it handled well, communicated well, is it easy to understand, fair and balanced, and is any necessary remediation happening in a timely way? 
  6. Are you looking at the bigger picture of the complaints data you collate? Is it being analysed for systemic issues or recurring pain points with customers?  How is that fed back into your decision making?

This research highlights potential underrepresentation and barriers in complaints processes, with early signals of demographic differences in how consumers engage. While small sample sizes limit definite conclusions, the findings suggest several possible areas for future focus by financial service providers – from consumer pain points and barriers to demographic patterns and the visibility of complaints channels. 

FMA says the insights gained from the research do not imply failure of financial service providers’ complaints processes, but they do raise questions about whether current complaints systems work effectively for all consumers. 

The information sheet sets out practical steps firms can take in response to these findings, building on consumers’ experiences and supporting more accessible, fair, and effective complaints processes.  

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