Complaints Surge Against Banks and Insurers Over Misleading Ads

Public complaints against banks and insurance companies surged in 2025, with many consumers expressing concerns that advertised claims do not align with reality. The Advertising Standards Authority (ASA), a self-regulatory body created by the media and advertising industries, has received numerous complaints regarding misleading advertisements. These complaints highlight a growing dissatisfaction among consumers who feel that certain marketed assurances are deceptive.

When the ASA receives a complaint, its board reviews the advertisement in question to determine if it is misleading or breaches community standards. The board allows for some exaggeration in advertising but has taken note of particularly troubling claims. These include accusations against AMP for allegedly promoting DIY acupuncture and Tower for suggesting that “all issues/problems are caused by women.” While some complaints raised significant concerns, others were dismissed for not meeting the ASA’s thresholds.

Insurance Retreat and Consumer Complaints

One of the pressing issues for homeowners is the phenomenon known as “insurance retreat,” where insurers refuse coverage for properties deemed too risky, particularly in flood-prone areas. In November 2025, a complaint about AA Insurance emerged, stating that its advertisements misled the public into believing they would be covered regardless of location.

The complainant shared their experience of attempting to secure home insurance after being impressed by an AA ad. Despite owning a new brick and tile home in a low-risk area, they were informed that AA Insurance would not cover their property due to risk assessment criteria. The individual reported that AA’s representatives explained that certain areas had quotas to minimize potential payouts in the event of disasters.

While the ASA’s complaints board reviewed the case, it ultimately ruled that the issue did not breach advertising standards, thus no further action was taken. A similar situation unfolded with FMG, whose advertisements for car insurance led to a complaint from a potential customer who found that FMG was not accepting new clients in their region.

Misleading Claims and Public Perception

In November 2025, complaints also stemmed from a BNZ advertisement for its payment app, Payap. The ad depicted a humorous exchange at a checkout, where surcharges were implied to be the fault of small retailers. A viewer argued that the true responsibility lies with banks like BNZ, which charge transaction fees. Although the bank stated it did not set surcharges, it acknowledged that retailers must pay fees to acquiring banks.

The ASA’s board determined that the advertisement utilized a light-hearted metaphor to illustrate a complicated issue, thus deciding not to uphold the complaint. Nevertheless, several viewers found the advertisement distasteful.

Another significant complaint involved a Facebook advertisement by Greenstone Financial Services for its life insurance product, OneChoice. The ad implied that surviving family members are responsible for a deceased person’s debts, a misconception that the complainant argued could mislead viewers. The ASA agreed with the concern, acknowledging that the advertisement could perpetuate harmful beliefs about debt responsibility. Greenstone defended its position, explaining that joint loans automatically transfer to surviving partners.

Consumer perceptions of banks were further challenged by a complaint against Westpac, which promoted itself as a supporter of small businesses. The complainant contended that major banks, including Westpac, prioritize profit maximization over genuine support for small enterprises. The ASA concluded that this complaint also did not meet its threshold for action.

Further complaints arose regarding an advertisement by Instant Finance, which depicted a lifestyle that many deemed unrealistic. Viewers expressed concern that the ad promoted the idea of borrowing to achieve an unaffordable lifestyle. Instant Finance responded by claiming the advertisement employed storytelling and hyperbole rather than making literal promises.

Overall, the influx of complaints highlights a growing demand for transparency and accountability among banks and insurance providers. As consumers navigate a complex financial landscape, the ASA’s role in addressing misleading advertising practices has never been more critical.