Media Release issued 09.12.03

Help available with financial disputes for primary producers

Primary producers who believe they have been treated unfairly by their credit union or
building society can take their complaint to an independent dispute resolution scheme.

The Financial Co-operative Dispute Resolution Scheme (FCDRS) is headed by National
Ombudsman Jan Taylor, a former Queensland Director of Fair Trading.

The FCDRS handles complaints involving less than $100,000 that are unable to be resolved between customers 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 a wide variety of other types of complaints.

The FCDRS replaces a national scheme that covered only participating credit unions and was more limited in its definition of the word “consumer”.

Jan Taylor advises that “as part of the requirements of the Financial Services Reform Act all financial service providers (FSPs) must join an ASIC-licensed external dispute resolution scheme such as the FCDRS by March 2004. All Australia’s building societies have now joined the scheme and, as part of its increased coverage, commercial disputes involving primary producers can also now be accepted for resolution.”

Primary producers and small businesses generally are encouraged to use the scheme.
These groups are considered “consumers” if, as manufacturers, they employ fewer than 100
full-time (or equivalent) employees or, as other types of businesses, they employ fewer than
20 full-time (or equivalent) employees.

According to Jan Taylor “very few primary producers or rural consumers made use of the
previous dispute resolution scheme, and a contributing factor was undoubtedly the tough time
confronting rural Australia in recent years.”

“One of my goals this year is to see a quadrupling of my contact with rural and regional
consumers,” Jan said.

“I find it personally objectionable that country customers appear to be missing out on this free
service. For this reason I am trying to make sure that the customers of non-metropolitan credit
unions and building societies know there is an independent authority they can turn to if they
have a problem they can’t solve directly with the FSP.

“As more and more banks have withdrawn from rural communities, the role of building
societies and credit unions has increased. These FSPs value their rural and regional
customers and are keen to ensure they have access to this new external scheme which is
funded by them, but completely independent.”

Jan said her job as Ombudsman was to investigate and quickly resolve disputes. Her case
officers are trained to provide information and advice for consumers and small business to
ensure their rights are protected and disputes settled with a minimum of effort. FCDRS staff
are also available via telephone outside office hours by appointment to accommodate farmers
and others who work long hours.

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 FSP, and they may decide to seek redress through other avenues.

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 1300139 220 or 07 3862 3455