Proactive credit dispute resolution

COSL’s July 2013 news contains some interesting statistics:

According to COSL 74% of all complaints closed by it in the past 12 months (which were within its jurisdiction) resulted in favourable outcomes for consumers. These include payment variations on grounds of financial hardship, fee reductions and refunds, monetary compensation and non-monetary orders (such as amending or removing a credit listing or returning a security asset to the consumer’s possession).

How can you resolve complaints before they reach COSL?

COSL itself strongly encourage FSPs to promote their internal dispute resolution (IDR) complaint handling process to their clients by prominently referring to the IDR process and contact details in documents and other material that are sent to clients.

COSL says 50% of the phone calls it receives are from people who think they are calling their FSP. This is because the FSP’s EDR contact details appear in the Credit Guide and in the Form 12A (Information about debtor‘s rights after default) as well as in bold caps at the end of documents such as the Form 5 Information Statement.

COSL encourages FSPs to review any of their template letters which mention COSL and ensure that their own IDR process is given prominence.

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