Media Release

Helping to solve financial services disputes

Credit union or building society members who believe they are being treated unfairly can now take their complaint to a new independent dispute resolution scheme.

The Financial Co-operative Dispute Resolution Scheme (FCDRS) is headed by National Ombudsman Jan Taylor, a former Queensland Commissioner for Consumer Affairs.

The FCDRS deals with a wide range of complaints that involve less than $100,000 and are unable to be resolved between consumers (including small business) and their credit unions or building societies. Issues include automatic teller machine (ATM) transactions, unauthorised use of credit cards, unauthorised transfers of electronic funds and disputed foreclosure of loans.

The FCDRS replaces a national scheme that covered only participating credit unions and was not available to small business owners. By the end of this month (June 2003), most building societies are expected to join existing credit union members. This is part of a requirement under new legislation that financial service providers must belong to an external complaints scheme licensed by the Australian Securities & Investments Commission (ASIC).

According to Jan Taylor, building societies and credit unions are playing an increasing role in providing financial services, especially in rural communities that have lost their banks. Generally, consumers also find these financial institutions are smaller, therefore more responsive.

"It's important that everyone who belongs to a credit union or building society knows there is an independent authority they can turn to if they have a problem they can't solve directly," she said.

Jan said her job as Ombudsman was to investigate and try to quickly resolve disputes. We have gone to great lengths to ensure the process is streamlined and easy for people to follow. My case officers are trained to provide information and advice for consumers and small business to ensure their rights are protected and disputes are minimised.

"Staff are also very willing to make themselves available outside office hours to cater for the needs of shift workers and others" Jan said.
Small business operators who are eligible to use the Scheme are manufacturers with fewer than 100 full-time (or equivalent) employees and other business owners with fewer than 20 full-time (or equivalent) employees.

A credit union or building society is bound by the Ombudsman's decision on a dispute. However, consumers can elect not to accept the decision if the Ombudsman finds in favour of the financial services provider, and they may subsequently seek redress through other avenues of complaint.