Who and what does the Scheme cover?

The Financial Co-operative Dispute Resolution Scheme covers disputes between retail clients (used interchangeably with "customer" throughout) and Scheme participants.

Retail Client means a individual or small business who is a customer of a participant (and who is a retail client for the purposes of Section 761G of the Financial Services Reform Act 2001). Small business means a business or incorporated entity which at the time the events relating to the dispute occurred had:-

	if the business or incorporated entity is or includes the manufacture of goods - less than one hundred (100) full time (or equivalent) employees; or
	if the business or incorporated entity is of another nature - less than twenty (20) full time (or equivalent) employees.

Participant means a credit union, building society or other financial services provider that has agreed to participate in the Scheme. Current Scheme participants are listed here.

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The Scheme's Terms of Reference limit the types of disputes that the Ombudsman may consider. Disputes relating to the following matters are excluded from the Scheme:

Commercial judgements in decisions about lending or security;

Matters relating to:-

	general interest rate policies; or
	the underlying performance of an investment;

If the Ombudsman believes that it is more appropriate that the dispute be dealt with by a Court, the office of the Privacy Commissioner, the Superannuation Complaints Tribunal, another independent complaints or conciliation procedure or under an arbitration procedure;

If the Ombudsman believes the dispute is being pursued frivolously or vexatiously;

If the Ombudsman believes the participant has not had sufficient opportunity to consider the matter;

If it appears to the Ombudsman that:

	the amount which the customer has claimed or could claim in the dispute exceeds $280,000; or
	the claimed amount is part of a larger claim, or is related to another claim, where the total amount of all such claims exceed $280,000.

These restrictions on types of disputes are consistent with those in other financial services industry dispute resolution schemes.

Every effort has been made to present the list of restrictions in a non-legalistic way. For those wishing to review the Scheme's Terms of Reference in full they can be accessed below. In addition, enquiries can be made of the Ombudsman's office to clarify any matters.

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Scheme's Terms of Reference. Click here.

Contact the Ombudsman's office. Click here for details.

The following financial institutions are current participants of the Financial Co-operative Dispute Resolution Scheme.

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