New Zealand’s FDR: 82% of complaints concern failure to return money

Earlier today New Zealand’s Financial Dispute Resolution (FDR) scheme published highlights about its work for the 12 months to June 30, 2015. The bulk of complaints the scheme received during the period concerned overseas Forex companies and their failure to reimburse payments.

Overall, during the 12-month period, the FDR registered 2,919 enquiries, including 475 complaints

Of those, 370 were referred back to the members complaints process.

Of the balance, 84 escalated to the FDRS formal disputes process and 59 of those were resolved.

At 82% of total complaint enquiries, the prevailing systemic issue was “failing to follow instructions”. In particular, the companies did not respond to requests from their customers to reimburse investments.

Only one of the disputes on hand at year end did not relate to a forex trading platform.

Talking of FDR members, which led to a wave of complaints, we cannot skip mentioning Forex Trend. According to FDR’s report for the first 11 months of its work (that is, the 11 months to May 31, 2015) the scheme got 248 complaints regarding Forex Trend, all of them – from Ukrainian residents. These complaints accounted for 60% of all enquiries received during the period.

To view the announcement by FDR, click here.

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