Consumers need legal representation in financial disputes
A one-stop shop to resolve financial disputes is a welcome step and consumers could benefit from it but they need to have the right to legal representation to ensure a level playing field, according to Maurice Blackburn Lawyers.
Maurice Blackburn’s principal, Kim Shaw, said that the cause of many disputes for consumers in Australia was vertical integration or cross-selling of banking and financial products so any measure that would help simplify the financial dispute complaint process would be a win for consumers.
“However, what is missing is any detail on ensuring that consumers have the right to legal representation in navigating financial disputes against banks and financial groups through the new framework ,” he said.
“Banks absolutely will be represented by lawyers in challenging disputes raised by consumers, but unlike the banks and financial service providers, consumers essentially have one hand tied behind their backs because they do not have the benefit of a team of lawyers on the payroll to assist them in a dispute.
“We would also continue to urge the Federal Government to actively pursue an enforceable code of conduct for the finance and insurance industry and a scheme of last resort – both of which were referenced in the interim report from the Ramsay Review but are yet to be acted on.”
The law firm’s comments came after the Federal Government formally responded to the interim report of the Ramsay Review of the financial system external dispute resolution (EDR) framework, including accepting the recommendation of a single EDR body for all financial disputes, known as the Australian Financial Complaints Authority.
This would replace the current Financial Ombudsman Service, the Credit and Investments Ombudsman and the Superannuation Complaints Tribunal.
AUTHOR
Oksana Patron
Recommended for you
AFCA has confirmed United Global Capital’s membership of the body will not be extended to accept further complaints, avoiding a repeat of the Dixon Advisory scenario.
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
