What's behind the surge in financial complaints?
Financial complaints in New Zealand have surged by 49 percent, reaching a 15-year high. The increase is attributed to economic stress, debt challenges, and the use of AI to facilitate the complaint process.
Why it matters
This trend highlights the growing strain on household finances and the evolving role of AI in consumer advocacy and dispute resolution.
It's been a record-breaking year for financial complaints, with a near 50 percent increase in the number lodged with the Financial Ombudsman.
These mainly included complaints about KiwiSaver providers when seeking hardship withdrawals, as well as being declined, along with electronic transaction services when people tried to recover funds through account number mistakes or scams.
Financial Ombudsman Susan Taylor told Nine to Noon there were 1596 complaints in the 2025/26 financial year, with 532 disputes investigated by the office - a 49 percent increase on the previous year.
Taylor said it was the sharpest increase in complaints in 15 years.
The surge was driven by ongoing economic stress, debt challenges and the use of AI to submit complaints, she said.
"For some New Zealanders, economic conditions remain very challenging."
She said using AI to submit complaints had it advantages and disadvantages.
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