FOS to speed up dispute process with sharper, simpler model
The Financial Ombudsman Service (FOS) will fast-track its decisions, introduce a simplified process and draw on specialist expertise earlier in dispute processes to reduce the length of time taken to resolve disputes.
The actions are in response to the independent review of FOS which found the external dispute resolution scheme needed to change its organisational model and increase the speed at which disputes are resolved.
In comments by Chief Ombudsman Shane Tregellis made available on its website, FOS stated it would be making changes in a number of specific areas and planned to have them in place by or before 1 July 2015.
Tregellis said the fast-track process would be applied to simpler and low-value disputes, while the current two-step dispute lodgement process would be reduced to a single step to allow financial services providers to resolve disputes internally before a FOS review.
FOS would also add specialist expertise earlier in the dispute resolution process and streamline the number of stages and the number of people involved in the process.
This was a key finding in the FOS review conducted by CameronRalph Navigator, which stated: "The primary issue identified by our analysis is the configuration of FOS into a series of discrete ‘production line' steps, each focusing on a particular dispute resolution technique. This configuration resulted in multiple hand-offs between FOS staff for many disputes, ‘queuing' of disputes between internal stages and delays in achieving a FOS view of the merits of disputes".
FOS executive general managers Michael Ridgway and Jamie Orchard will hold meetings with financial services provider stakeholders and consumer groups in the next few weeks to discuss the independent review's findings and the proposed changes.
In his comments, Tregellis stated the review highlighted the need to reduce current dispute backlogs and streamline the dispute-handling processes, which he said was taking already place via initiatives implemented through FOS's 2013-2014 Business Plan.
AUTHOR
Jason Spits
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