Media Release issued 09.12.03

FSR deadline is close for FSP external dispute schemes

The deadline is fast approaching for all financial service providers (FSPs) to have a licensed
external dispute resolution scheme.

All Australia’s building societies have made the decision to join the Financial Co-operative
Dispute Resolution Scheme (FCDRS). This means that all Australia’s building societies have
met the March 2004 deadline for membership of an ASIC-licensed external dispute scheme.
The FCDRS replaces a national scheme that previously covered only participating credit
unions. The independent scheme is headed by National Ombudsman Jan Taylor, a former
Queensland Director of Fair Trading.

The FCDRS deals with a wide range of complaints involving less than $100,000 and unable
to be resolved between consumers, small business and primary producers, and their credit
union or building society. Issues include automatic teller machine (ATM) transactions,
unauthorised use of credit cards and transfers of electronic funds, misrepresentation,
disputed foreclosure of loans and many other types of complaints.
According to Jan Taylor, “building societies and credit unions are playing an increasing role in
providing financial services, and their size allows them to be more responsive than the much
larger banks”.

“Customers are often more willing to front up to credit unions and building societies with their
complaints as they find them more accessible. Nevertheless, there will always be occasions
when disputes cannot be resolved between the two parties and that is when the FCDRS
comes into play.” she said. “The Dispute Resolution Scheme is totally independent, and my
job as Ombudsman is to investigate and quickly resolve disputes that can’t be settled
between FSPs and their customers”.

A credit union or building society is bound by the Ombudsman’s decision on a dispute.
However, consumers can elect not to accept a decision if the Ombudsman finds in favour of
the FSP, and they may then elect to seek redress through other avenues.
Jan Taylor added “we have gone to great lengths to ensure the process is streamlined and
easy for people to utilise. It has also been extended to provide coverage for small business”.
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.

To contact the FCDRS:

• Call 1300 139 220 for the cost of a local call.
  
• Write to the Ombudsman at the FCDRS, PO Box 372 Clayfield Qld 4011.
• Email to ombudsman@fcdrs.org.au or download a dispute form from www.fcdrs.org.au
  and return it by fax 1300 139 221.

FOR MEDIA ENQUIRIES ONLY:
Call Jan Taylor on 1300 139 220 or 07 3862 1722