Bankrupt lobbies for right to bank account
Christchurch woman Lisa Cowe is on a mission to have the right to a bank account enshrined in New Zealand law.
Cowe was made bankrupt in April 2017 with relatively modest debts, including debts incurred in the aftermath of the Christchurch earthquakes, and her experiences led her to make a submission to the Australian royal commission of inquiry into banking.
She asked the commissioners to investigate the New Zealand subsidiaries of the big Australian banks. But her plea also revealed Cowe is working for law change in New Zealand to make access to banking a human right.
‘‘I am in the process of creating a member’s bill to change our Human Rights Act as a first step to ending collective corporate bullying in New Zealand by banks and financial corporations against the people of NZ,’’ Cowes wrote in her submission to the Australian royal commission.
‘‘What a shock to find that NZ people don’t even have any laws that give them the legal right to hold a bank account.
‘‘So far the only laws in NZ that govern a banking relationship are the contracts that we are forced to sign with banks, or agree to their terms and conditions in some other way.
‘‘Bankrupts, no-asset procedures and others in financial hardship are severely discriminated against in New Zealand.
‘‘There are no laws that allow any New Zealand person to hold even one transactional bank account, either. This is another law that needs to be created.’’
Increasingly things as simple as getting paid a benefit or a tax rebate require a bank account, she said.
Cowe was prompted to push for a law change after some banks refused to let her open an account because she was bankrupted.
Kiwibank did allow her to have an account, but she said she was declined by others. Bank of New Zealand, in whose name she was bankrupted, required her to find another bank.
She now believes banks should be required by law to bank people who have been through personal insolvencies and provide them with transaction accounts and debit cards.
The Code of Banking Practice, which all the banks sign up to voluntarily, does not include an obligation on banks to open accounts for individuals.
Cowe wants an amendment to the Human Rights Act, adding ‘‘personal insolvency’’ to the list of grounds that businesses cannot discriminate against people on for the provision of goods and services, except in cases involving in the provision of loans.
At present, the act bans businesses from discriminating on any of 12 broad categories: a per- son’s sex, marital status, religious belief, ethical belief, colour, race, ethnic or national origins, disability, political opinion, employment status, family status, or sexual orientation.
The discrimination against bankrupts is not only by financial services companies, Cowe said.
Once bankrupted, no civil aid is available to challenge the ruling.
Cowe has also been lobbying for regulation of debt collectors, with whom she has had bad experiences.
Debt collectors are facing regulation. A Cabinet paper highlighted dubious practices in the industry, including misrepresenting debtors’ legal rights.
Commerce Minister Kris Faafoi wrote to Cowe last week to tell her: ‘‘I take the financial wellbeing of New Zealanders very seriously and am doing everything within my power to ensure that the concerns that you and other Kiwis raise around bad practice by creditors and debt collectors are addressed.’’
‘‘What a shock to find that NZ people don’t even have any laws that give them the legal right to hold a bank account.’’ Lisa Cowe’s submission to the Australian royal commission of inquiry