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TRACY NEAL / RNZ
Medical cannabis seller Rose Renton said Kiwibank notified her 14 days in advance that it was closing her account.
This story was originally published on RNZ.co.nz and republished with permission.
A Nelson medical cannabis seller says the nature of her trade is the likely reason Kiwibank left her as a customer.
Rose Renton said the bank had given her 14 days’ notice that it was closing her account.
It has led a Massey Business School director to say that a change in law was needed for banks to declare why they closed customer accounts.
Renton, a longtime cannabis activist, was named one of Kiwibank’s 14 Regional Nelson Local Heroes last year for her work supporting the vulnerable and sick with cannabis medications.
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* Rose Renton prepares for the next stage in the fight against cannabis
* Kiwibank bug sees customers threatened with account closure
Renton had previously been released without conviction on the charge of growing cannabis after a judge found her crime to be “altruistic.”
He has been a Kiwibank customer for many years and although the bank did not say why it made the decision, it had a clear idea.
“I would say that the income I receive from helping the vulnerable in the community is not taxable, even though there was a tax account in my bank, and I was taxed on all my earnings.
“I’m not hiding anything, all deposits go directly to that account, so I would say it has to do with the legality or illegality of cannabis as a medicine.”
Renton said that until recently he had $ 95,000 invested in the bank and $ 32,000 in a tax account.
Dr. Claire Matthews of Massey University said it did happen that a bank closed someone’s account for no reason, but that it was not common.
She said banks weren’t legally bound to say why, but they should be.
“I’d say it’s something that needs to be changed in related legislation, because there’s no (opportunity to) appeal; it’s a business decision, so you can’t even go to the banking ombudsman and say, ‘They closed my account’ unless that you have some evidence why they have done it.
“They can do it and the customer has no recourse.”
Kiwibank said in a letter to Renton that it had decided it was “no longer ready” to offer its banking services.
It said that it reserved the right under section seven of its general terms and conditions to close the account without giving a reason.
A Kiwibank spokesperson said that due to privacy laws, it would not comment on individuals.
Matthews said the banks that took this action probably had legitimate reasons, but there was no way of knowing and, at times, it was possible that they were acting on incorrect information or a misunderstanding.
And the client had no way of knowing or how he could rectify the matter.
Matthews said Kiwibank’s decision could be related to its recent announcement about its responsible corporate banking policy.
Claire Eastham-Farrelly / RNZ
Kiwibank wrote to Renton saying that he had decided that he was “no longer ready” to offer his banking services.
Kiwibank CEO Steve Jurkovich recently said Press room I wanted responsible business banking to be integrated into all customer dealings.
Matthews said that once a bank took that path, it could get “a little confusing.”
“It’s very subjective and, as far as I know, they haven’t come up with any guidance on what they are going to accept.”
Renton said he had not spoken to the bank about the decision; He only received a letter to tell him that by this date his accounts would be closed next week and that he would look for another bank.
“Now I changed my bank, I have no choice. How else do I pay my rent and my energy and all those normal things that you pay through your bank?”
He said the irony was waiting to pay taxes on something that had to wait to become legal (medical cannabis is currently legal only if prescribed by a GP or specialist).
“So when a New Zealand bank is not prepared to support someone who has awarded for helping those in need, and penalizes them for doing so, I think the public deserves to know what their bank is doing.”
Renton said it had been open and didn’t hide anything.
“I suppose I could have been undercover and gone abroad and done PayPal, but I have nothing to hide and never have.
“It is not my problem, the laws do not adjust to the needs.”
This story was originally published on RNZ.co.nz and republished with permission.
