Media Release issued 09.12.03

New way to solve financial services disputes

Credit union or building society customers who believe they are being treated unfairly can
now take their complaint to an independent dispute resolution scheme, the Financial Cooperative
Dispute Resolution Scheme (FCDRS).

Under Australia’s Financial Services Reform Act all financial service providers by March 2004
must belong to an external complaints scheme licensed by the Australian Securities &
Investments Commission (ASIC) and the FCDRS is now licensed to handle complaints in
relation to building societies and a significant number of credit unions.

FCDRS is headed by the National Ombudsman, Jan Taylor, a former Queensland Director of
Fair Trading. Although its office is based in Brisbane, interstate callers to the scheme have
access to a 1300 number, at the cost of a local call.

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 or transfers of electronic funds, misrepresentation 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. All Australian building societies have joined existing
credit union members in the Scheme and its availability has been extended to small business.
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 resolved quickly”.

“Staff are also very willing to make themselves available outside office hours by appointment
to cater for the needs of shift workers and others” Jan said.

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.

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 1300139 220 or 07 3862 3455