Dispute resolution and hardship applications

Before we can grant you a credit licence, you must demonstrate that you have a dispute resolution system in place that comprises:

Internal dispute resolution

You will be asked a group of questions that are designed to obtain your confirmation that you have, or will have from the date your licence starts (if it is granted), an internal dispute resolution system, and that it meets, or will meet, the requirements set out in RG 165, including:

  • the role of the person responsible for internal dispute resolution;

  • whether your internal dispute resolution procedures meet, or will meet, the requirements in RG 165;

  • whether your procedures are, or will be, documented and available to clients; and

  • whether the procedures specify, or will specify, that information about unresolved complaints must be provided to your EDR scheme.

You will also be asked whether you have, or will have, documented procedures for receiving and assessing requests to vary credit contracts on the grounds of hardship (if you intend to provide credit). You require separate procedures for these types of applications because they are generally of an urgent nature.

If you are an AFS licensee, the online application will only display questions about hardship application procedures. We have limited the questions that are asked because you have already demonstrated that you have appropriate internal dispute resolution arrangements in relation to your financial services business. We expect that, if you are granted a credit licence, you will comply with your obligations under the National Credit Act by maintaining the same types of arrangements in relation to your credit activities.

If you indicate that you will not, from the date your licence starts (if it is granted), have in place internal dispute resolution systems or procedures for dealing with hardship applications, you will not be able to continue with the application because you would not meet the minimum requirements to be granted a credit licence.

External dispute resolution

You will be asked to enter the details of the EDR scheme or schemes of which you are a member, including your membership number and the date your membership commenced. If your EDR scheme does not provide membership numbers, you should leave this field blank. If you do not have a formal commencement date, you should enter the date you first became a member of the EDR scheme, or were first covered by the EDR scheme.

If you are not a member of an EDR scheme, you can still continue with the application. However, you will not be granted a credit licence until you have become a member of an approved EDR scheme.

Approved EDR schemes

EDR Scheme

Contact details

Financial Ombudsman Service Ltd

Address:

GPO Box 3, Melbourne Vic 3001

Phone:

1300 565 562 (members)
1300 780 808 (consumers)
(03) 9613 7366

Email:

info@fos.org.au (administration) membership@fos.org.au (membership inquiries)

Website: www.fos.org.au

Credit and Investments Ombudsman

Address:

PO Box A252
Sydney South NSW 1235

Phone:

(02) 9273 8455 (members)
1800 138 422 (consumers)

Email: info@cio.org.au

Website: www.cio.org.au

Fax number:

(02) 9273 8440 (complaints)
(02) 9273 8445 (financial services providers)


This information comes from Regulatory Guide 204.

Last updated: 20/10/2014 12:00