ASIC has released Consultation Paper 172: Review: EDR jurisdiction over complaints when members commence debt recovery proceedings (CP 172).
The review seeks feedback on whether ASIC should refine its policy settings in Regulatory Guide 139 Approval and oversight of external dispute resolution schemes (RG 139) which require both EDR schemes – FOS and the Credit Ombudsman Service Limited (COSL) – to handle complaints under their Terms of Reference or Rules where members have commenced debt recovery legal proceedings. This must cover proceedings that are in their early stages, but need not cover those that have progressed beyond the complainant lodging a defence or defence and counterclaim.
There have been criticisms by Financial Service Providers that EDR schemes are taking too long to resolve consumer claims, especially those lodged after default notices and legal proceedings have issued, resulting in a postponement of enforcement proceedings.
Comments on the consultation paper are due by Monday 27 February 2012.