FOS acts to reduce dispute resolution delays

FOS has announced that it has adopted a new Workflow Assessment Process which will be used for disputes that remain unresolved after they have been through internal dispute resolution and after the financial services provider (FSP) has provided their initial response about the dispute to it.

The following types of disputes may now be referred directly for decision (or conciliation for financial difficulty disputes) without first trying to resolve these disputes using negotiation, conciliation or assessment:

  • EFT or unauthorised withdrawal disputes with claims greater than $10,000
  • Allegations of forgery with claims greater than $10,000
  • Disputed liability under a guarantee
  • Clearout listings on consumer credit files
  • Claims of maladministration in lending for secured debts relating to home loans, reverse mortgages and business lending (lodged by borrower or guarantor) where the Applicant claims they did not understand the agreement or were misled in relation to the lending, they could not afford the credit facility, they did not receive the benefit of the funds lent, or the credit facility was unsuitable at the time of lending (where the Responsible Lending provisions of the National Consumer Credit Protection Act apply)
  • Claims of misconduct by FSP as mortgagee in possession
  • Retrospective claims for financial difficulty in relation to secured loans where there are no current arrears
  • Disputes where the applicant is experiencing financial difficulty, accepts liability for the debt and there are significant arrears (over $100,000) on a secured facility, and the parties’ proposals for repayment are vastly different, cross-securitised multiple facilities with significant outstanding balances (over $1 million), or secured debts where there are also Family Court proceedings, bankruptcy or company liquidation.
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