FOS disputes and resolutions up in 2012

23 November 2012
| By Staff |
image
image
expand image

There was another significant jump in the number of disputes both received and resolved by the Financial Ombudsman Service (FOS) in 2011-2012, according to the latest FOS annual review.

Disputes received rose 19 per cent from the previous year to 36,099, following a 27 per cent increase the previous year. FOS accepted 25,298 disputes (up 24 per cent on the previous year) into its formal dispute resolution process, which happens when a dispute can't be resolved directly between a customer and a financial services provider.

The number of accepted disputes resolved jumped 31 per cent from the previous year to 24,983.

The proportion of disputes resolved by agreement also rose, from 71 to 74 per cent, along with a slight increase in disputes resolved within 60 days (from 50 to 52 per cent) and within 120 days (from 68 to 71 per cent).

"Of those disputes received we're resolving more, so we're more than keeping pace with numbers. We're focusing on early agreed resolutions and cooperation with applicants," said FOS chief ombudsman Shane Tregillis.

The overall increase was attributable to a number of factors, including ongoing fallout from the global financial crisis, several natural disasters, and increasing consumer awareness of FOS, Tregillis said.

The rise was largely driven by credit disputes, which made up half of all disputes accepted. Financial difficulty disputes jumped 42 per cent from 6102 to 8659, up from just 2648 in 2009-10.

Investment disputes were down 14 per cent, which Tregillis said might be due to the numbers falling back to normal levels after rising due to the GFC.

Tregillis said FOS also planned to build on its secured services, which allowed members to track disputes online, as a way to improve efficiency and engagement.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 2 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 4 days ago