Managing Expectations

To expect means to think or know that something should happen based on past experience, understanding or knowledge. The dictionary states “regard something as likely to happen”.

We expect people to be honest, we expect to be treated fairly, we expect to be looked after, we expect to go home at the end of the day – all of these things (and many more) are things we take for granted.

When someone does something the same way for so long, it sets an expectation that that thing will not change – at least not without notice or good justification - ideally backed by evidence. We expect that any business, especially a Crown Agency knows the ins and outs of its rules, regulations and legislation. It came as a bit of a shock to learn that ACC had read the legislation wrong – again. Yes – again.

The first time they read the legislation wrong was last year (remember the $100m debacle?).  Should it have come as a surprise that ACC have done it again? Actually yes – it was a surprise. You’d think that having got it so terribly wrong last time, that the legislation would have been looked over with a fine-tooth comb. Apparently not – at least not for the several months they’ve been telling us the reason ACC could not pay the interest was because of a system issue.

This time, they’re refusing to pay credit interest to customers that have had changes made to their accounts – despite having done it since, well - forever. 

Just to refresh you – credit interest is paid when you overpay your provisional invoice by more than $1,000. This normally happens when there’s been a change to your payroll or when something else (like the levy code) has changed on your account. ACC have always paid interest on the money they’ve made from having your extra money in their bank account. For perspective - a customer owed $1,000 by ACC from a change made in 2010 is owed around $689 in interest. That’s the equivalent of about 3 tanks of petrol (based on today’s cheapest rate in Wellington), 115 bags of Heirloom tomatoes from Countdown (300gm bags) or 153 cups of coffee – extra-large.

Now though ACC are changing the rules and deciding that interest is no longer payable on the same criteria.  In other words, ACC is saying that they can use your money and not have to pay for it. When we make a change for a client that results in a credit, it is actually ACC who got it wrong in the first place so we end up with a situation where ACC makes a mistake, has your money, and then earns further income from your money – and they’re not going to give back that additional income!

For us, credit interest has been an ongoing issue for many years. We’ve been in conversations with ACC about the latest challenge since December last year as to why interest payments were being delayed. ACC have been telling us all this time that it was a system issue – we expected that to be the truth, that ACC would fix it and you would get what you’re entitled to. Now, most of you won’t. You won’t get what you expect or what you are entitled to. Fair to say, you won’t get what we expect.

I expect ACC to be up front about this, I expect ACC to do the right thing, I expect ACC to give back the use of the money they’ve had – your money. Is that too much to expect?

Sue Walton Manager - ManageACC

027 210 4918 | Sue@managecompany.co.nz