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Demands for proof of ID, combined with all New Zealand banks no longer accepting cheques, is causing major headaches for local senior citizens.
Ōrewa accountant Merv Huxford says he and his clients have been “tearing their hair out” as banks and other financial institutions insist on ever more complex proof of identity, largely due to anti-money laundering legislation.
“For more than a year now, myself and many older people in particular have been frustrated with the hoops we’re having to jump through,” he says. “Although people get frustrated with their bank, the fault really lies with central government bureaucrats designing ‘one size fits all’ processes to make their own job easier. They try to fit everyone into one box and don’t leave enough room for common sense discretion.”
Huxford says one of the most frustrating cases was a 98-year-old woman who was required to supply several items of photo ID that were less than three months old, simply because the bank had stopped accepting cheques, her previously preferred payment method.
“This lady has no current passport or drivers licence – expired ones are not accepted – so was expected to apply for a Kiwi Access ID card,” he said. “Imagine yourself aa a 98-year-old trying to fill this form in.”
The woman, who did not wish to be named, said she had been with the same bank for at least 60 years and still managed all her own finances. However, when she went to her branch to try to access online banking, staff said her only option was to hand over control of her accounts to her daughter.
“The bank worker didn’t listen when I explained that despite Mum’s age, she was fully capable of managing her own finances, but would need help to master online banking. She said the only option was to do power of accountant,” her daughter said. “To me, this was insulting.”
In the end, it took a month and intervention by Huxford to satisfy the bank that the customer was who she said she was.
“It made me feel as though they thought I was a scammer,” she said. “They get your money but you have no rights – it’s all about the bank. I’m very comfortable here because I’ve got a son and daughter who can look after it all, but what about all the other people who haven’t got anybody?”
