The debate continues: how much should banks tell customers about their loan arrangements? And how best to do it clearly?
Stuff today discusses the idea of a standardised document across all financial institutions to allow customers to shop around and easily compare terms and conditions.
Our financial decisions and experiences have a lot in common with our health decisions and experiences. In both areas, we have to take in a lot of information, understand it and use it to make a decision we may have to live with for many years.
In New Zealand, the Code of Health and Disability Consumers’ Rights (1996) protects consumers in their health decisions and experiences with health providers. Right 6 (1) says:
You have the right to all the information you need to make an informed choice or give your informed consent.
So banks could learn from the health and disability sector and give people all the information they need to make an informed choice. Information written in plain language in a well-designed document will encourage customer loyalty, and make it easier for customers to understand their financial obligations.