Disputes with financial services or credit providers - video transcript
Transcript of video about disputes with financial services or credit providers, presented by Andrea, ASIC's Misconduct and Breach Reporting team, uploaded 2 June 2014.
If you have a complaint about your financial services or credit provider you should first go through their internal dispute resolution process or IDR for short.
If you are unhappy with the result of IDR then you should take your complaint through an external dispute resolution scheme or EDR for short.
What is internal dispute resolution?
All licensed financial services or credit providers must provide a process to attempt to resolve disputes with consumers directly. This process is known as IDR.
What are external dispute resolution schemes?
EDR schemes are a free and independent way to resolve disputes with financial services or credit providers. They are an alternative to going to court, which can be expensive.
All licensed financial services or credit providers have to hold membership with an ASIC-approved EDR scheme. These include the Financial Ombudsman Service or the Credit Ombudsman Service Limited.
EDR schemes can help you resolve your complaint with the business often through negotiation or conciliation.
There are financial limits on the claims that EDR schemes can deal with, so you should check this with your EDR scheme.
What are my options?
Step 1 – IDR
As mentioned, the first step is to try to resolve your dispute through the IDR process. Contact the financial services or credit provider and ask for details of their complaints officer.
These should also be on the provider’s website.
You can then make a complaint online or in writing to the complaints officer and give them an opportunity to respond. Many disputes are resolved this way.
The business should try to resolve your complaint in a reasonable time, and tell you the final outcome of your complaint.
Step 2 – EDR
If you're unhappy with the outcome, contact the provider’s EDR scheme about your complaint.
The business must tell you about its EDR scheme. You can also search the membership lists of the Financial Ombudsman Service or the Credit Ombudsman Service Limited to see where your provider is a member.
If you accept, decisions made by EDR schemes are binding on the business. If you don’t accept the decision; you can still take your complaint to court to seek compensation.
You should also read Information Sheet 176 External Dispute Resolution – What to do if you are unhappy with a scheme decision which is available on our website (INFO 176).
What's ASIC's role here?
EDR schemes are independent and are responsible for their own internal processes and management of disputes.
We have an oversight role to ensure EDR schemes work effectively in dealing with complaints.
We approve the rules each scheme operates within and ensure that they meet their obligations.
But we cannot tell them what to do, what decisions to make, or review their decisions.
ASIC does not provide dispute resolution services like EDR schemes do.
For more information see Information Sheet 174 Disputes with financial services or credit providers.