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Credit Union DispuCredit Union Dispute Resolution C
GPO Box 3, MeTelephone: Facsimile: (
REVIEW OF THE CDISPUTE RESOLU
BACKGROUND
June 200
This Paper has been produced by CUDbackground information for the assistaninterested in the review or in CUDRC. Aviews or conclusions and do not necessreviewer.
te Resolution Centre entre Pty Ltd ABN 64 075 629 391
lbourne, Vic, 3001 1300 78 0808 03) 9620 4446
REDIT UNION TION CENTRE
PAPER
5
RC. Its purpose is to provide ce of the reviewer and for those ny views expressed are internal arily represent the views of the
TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION 4
1.1 Background to the Review 4
1.2 Purpose and Content of the Background Paper 5
CHAPTER 2: BACKGROUND TO CUDRC 7
2.1 Background 7
2.2 How CUDRC developed 8
2.3 Change in Dispute Manager 11
2.4 ASIC Approval of CUDRC 12
2.5 Present Position 13
CHAPTER 3: THE STRUCTURE OF CUDRC 14
3.1 The powers and role of the Manager 14
3.2 The structure and role of the Board 14
3.3 Membership of CUDRC 16
3.4 The funding of the scheme 16
3.5 The people 16
CHAPTER 4: THE JURISDICTION OF CUDRC 18
4.1 Introduction: the Terms of Reference of CUDRC 18
4.2 The jurisdiction of CUDRC in summary 18
4.3 Matters outside the jurisdiction of CUDRC 19
4.4 The monetary limit: its rationale, past increases and future considerations 21
4.5 Remedies available 24
CHAPTER 5: DISPUTE RESOLUTION AND DECISION-MAKING PROCESSES 26
5.1 Accessing CUDRC 25
5.2 After receipt of a written dispute 27
2
5.3 Stages of Resolution: referral to and response by the member 28
5.4 Stages of Resolution: Investigation 29
5.5 Stages of Resolution: Determination 32
5.6 Procedural fairness in practice 33
5.7 Fairness in outcomes 34
CHAPTER 6: RAISING STANDARDS: ANCILLARY ROLES OF AN EDR SCHEME 36
6.1 Identifying and resolving systemic issues 36
6.2 Member and external education 38
CHAPTER 7: SYSTEMS, DATA COLLECTION AND REPORTING 39
7.1 The use of technology in CUDRC processes 39
7.2 Collecting and recording of case information 40
7.3 Reporting to stakeholders and the public 41
7.4 Monitoring members’ compliance 43
7.5 Performance targets 44
7.6 Recording and reporting systemic issues 44
CHAPTER 8: FUTURE PLANNING FOR THE BOARD OF CUDRC 46
8.1 Issues for the future 46
LINKS FOR FURTHER INFORMATION 48
APPENDIX 1: ASIC POLICY STATEMENT 139.151
3
Chapter 1: Introduction
1.1 Background to the Review
1.1.1 Credit Union Dispute Resolution Centre (CUDRC) is an independent
dispute resolution service which considers and seeks to resolve disputes
between Australian credit unions who are members of CUDRC and their
individual and small business customers. It is an alternative to litigation
and free to individuals and small business.
1.1.2 CUDRC is approved by the Australian Securities and Investments
Commission (ASIC) as an external dispute resolution scheme for financial
services licensees under Part 7 of the Corporations Act 2001 (Cth). ASIC is an
independent Australian government body, which regulates companies and
financial services providers and enforces the relevant laws. Sections
912A(1) (g) and 912A(2) of the Corporations Act require a licensee providing
financial services to retail clients, as defined in the Act, to have a dispute
resolution system that includes membership of an external dispute
resolution scheme approved by ASIC. Policy statements are issued by ASIC
to provide guidance on matters relevant to compliance with Part 7 of the
Corporations Act. Policy Statement 139, ‘Approval of External Dispute
Resolution Schemes’, sets out guidelines for the approval of schemes such
as CUDRC.
1.1.3 CUDRC was approved by ASIC in September 2002. Some 143 Australian
Credit Unions have joined CUDRC.
1.1.4 Clause 9.3(c) of the Constitution of Credit Union Dispute Resolution Centre
requires the Directors to commission an independent
4
review of the operations and procedures of the scheme every three years or
more frequently if the Directors consider this to be appropriate.
1.1.5 The requirement of the Constitution is consistent with ASIC Policy
Statement 139, ‘Approval of external complaints resolution schemes’,
paragraph PS 139.92:
‘A scheme should commission an independent review of its operations and
procedures every three years. This time frame should not preclude a review
occurring sooner if appropriate.’
1.1.6 Pursuant to this requirement, the Board of CUDRC has commissioned an
independent review of the operations and procedures of CUDRC to take
place in 2005.
1.2 Purpose and Content of the Background Paper
1.2.1 Under PS 139, an ASIC-approved scheme such as CUDRC is required to
have certain characteristics. These are:
• accessibility;
• independence;
• fairness;
• accountability;
• efficiency; and
• effectiveness.
1.2.2 The purpose of this Background Paper is to provide information about the
operations and procedures of CUDRC for the reviewer and for those
interested in the review who may wish to provide comment to the reviewer
5
or otherwise inform themselves about CUDRC.
1.2.3 This Background Paper describes the history, structure, jurisdiction,
processes and systems of CUDRC. It concludes by raising a number of
issues relevant to future planning by the CUDRC Board.
1.2.4 The Terms of Reference of the review have been set by the Board. They
have been provided to and will be available from the reviewer.
6
Chapter 2: Background to CUDRC 2.1 Background
2.1.1 The Credit Union Dispute Resolution Centre (CUDRC) is the ASIC
approved external dispute resolution provider for the majority of
Australian credit unions. Funded by participating credit unions, the
scheme offers independent and impartial dispute resolution services to
credit union members with costs paid by participating credit unions.
CUDRC is approved by the Australian Securities and Investments
Commission as an approved external dispute resolution service.
2.1.2 CUDRC has its origins in the development of the Credit Union Code of
Practice, a self-regulatory industry code of practice to which the majority of
Australian credit union subscribe.
2.1.3 The Credit Union Code of Practice (developed during the same period as
the Banking Code of Practice) established a requirement for credit unions to
make available to their members, free of charge, an external and impartial
dispute resolution system. While the Code commenced formally in 1996,
credit unions affiliated with Credit Union Services Corporation (Australia)
Limited (CUSCAL) adopted the terms and mandatory compliance with the
Code in principle at the CUSCAL Annual General Meeting in 1994.
2.1.4 As part of the adoption of the Code, CUSCAL, at the instruction of its
member credit unions, set about establishing an industry-wide professional
dispute resolution service to meet the obligations under the Code and the
EFT Code of Conduct. At the time of the adoption of the Credit Union
Code of Practice, credit unions had in place a number of separate external
7
dispute resolution schemes. While the Code established mandatory
requirements for EDR services for members, the decision on how to meet
these obligations (and which scheme or service to join) remains a matter for
individual credit unions.
2.1.5 The structure of CUDRC was settled in consultation with member credit
unions, in consultation with existing dispute resolution schemes and
industry practice. The main objectives to establishing CUDRC were:
i. To satisfy the public expectation that providers of financial services
should be accountable to customers;
ii. An effective Scheme would help credit unions compete with other
providers of financial services and ensure compliance with the Code
and other regulatory requirements were effectively managed for
members; and
iii. An effective Scheme would improve practices in individual credit
unions areas where administrative reform is needed.
2.2 How CUDRC Developed
2.2.1 CUDRC (then named the Credit Union Dispute Reference Centre)
commenced operations in November 1996. The company was established
as a subsidiary of CUSCAL, with additional requirements to ensure the
requisite degree of independence in its operations and decision making
from the other operations of CUSCAL and credit unions.
2.2.2 The Directors of that company consisted of an independent Chair and four
nominated representatives of CUSCAL’s Board.
8
A separate Council, comprised of an independent Chair and two
nominated positions for both representatives of the consumer movement
and the credit union sector, was established to oversee the management
and governance of the Scheme.
2.2.3 The separation of the governance responsibilities of the Board and Council
were established in the Articles of Association and Terms of Reference of
the original scheme.
2.2.4 The Board determined the Terms of Reference which defined the
jurisdiction of the Credit Union Dispute Manager. It also approved budget,
raised levies from credit unions to fund the Scheme’s operation, and
appointed the Council members.
2.2.5 The Council, however, was responsible for the operation of the CUDRC
Scheme. Its duties included establishing the annual budget, making
recommendations to the Directors in respect to the Terms of Reference,
oversaw the general operation of the Scheme and appointed the Dispute
Manager. It was not empowered to hear or determine any disputes. The
Council consisted of two credit union representatives, two consumer
representatives and an independent Chair.
2.2.7 The day to day operations of CUDRC were outsourced and managed on
behalf of CUDRC by an external professional dispute resolution service,
under formal tender processes overseen by the Council. In July 1996 the
Australian Commercial Disputes Centre successfully tendered to provide
external dispute services to CUDRC.
2.2.8 CUDRC was established under a funding formula whereby participating
credit unions contributed annual levies and separate charges for variable
9
costs associated with individual disputes. This funding arrangement
continues through to CUDRC’s operations today.
2.2.9 The Scheme evolved quickly in its first year. 202 credit unions joined in the
first year, representing more than 80% of CUSCAL’s membership at the
time. CUDRC developed a focus on negotiation and conciliation in settling
disputes, reflecting the values and close member relationship of credit
unions with their members. 30 disputes were heard in the first year of
CUDRC’s operations. By 1998/99, CUDRC reported to ASIC a total of 767
disputes across 2 million accounts and 137 million transactions. 90% of
these disputes were resolved to members’ satisfaction without CUDRC
exercising its formal dispute powers.
2.2.10 From 1996 to 2000, CUDRC instituted a number of changes to its Terms of
Reference and procedures. The name of the service changed from Credit
Union Dispute Reference Centre to Credit Union Dispute Resolution Centre
(passed by SGM in February 2000 and registered in March 2000). From that
time, of course, the scheme was promoted using the new name.
2.2.11 While the majority of Australian credit unions have, since its inception,
been members of CUDRC, membership of a particular EDR scheme is not
mandated in the Credit Union Code.
As a result, several smaller dispute resolution schemes continued to operate
through the late 1990’s/early 2000 across the credit union sector.
In its annual report on Compliance with the Payments Systems Codes of
Practice and the EFT Code of Conduct, April 2000 – March 2001, for
example, ASIC noted five schemes operating across the credit union sector
as below:
10
ADR Scheme/Process Number of Credit Unions CUDRC 163 Credit Union Ombudsman1 22 Endispute2 6 Both CUDRC & CUO2 2 Other (largely separately contracted)2 5
Source: ASIC Code Monitoring Report – March 2002
Over time (see ASIC Approval below) the majority of the smaller schemes
have been disbanded. CUDRC remains the main dispute services provider
to the majority of Australian credit unions.
2.3 Change in Dispute Manager
2.3.1 During 2001/2002, following a review of CUDRC’s operations and Terms
of Reference, the provision of Dispute Management services was re-
tendered and the Australian Banking Industry Ombudsman (now the
Banking and Financial Services Ombudsman) became the Manager of the
scheme from 1 September 2002 after a competitive selection process.
2.3.2 The Banking and Financial Services Ombudsman continues to provide a
dispute resolution service to CUDRC which continues to operate with
separate branding, identification, contact details and Terms of Reference,
and under a separate governance structure.
_______________________________________________________
1. The Credit Union Ombudsman is now known as the FCDRS
2. No other schemes now exist
11
2.4 ASIC Approval of CUDRC
2.4.1 In 2001, the Parliament passed the Financial Services Reform Act 2001,
establishing a new regulatory, licensing and disclosure regime for financial
services providers. Under transition arrangements under FSR, existing
financial services providers were granted a transition period to March 2002
to meet the new requirements of the FSR landscape.
2.4.2 An important part of the FSR regime for Australian Financial Services
Licensees is the obligations on internal and external dispute resolution for
customers. Membership of an ASIC-approved external dispute resolution
scheme was also established as a licensing requirement for the new FSR
environment.
ASIC’s approval requirements are set out in Policy Statement 139
(Approval of External Complaints Resolution Schemes). ASIC formally
approved the CUDRC scheme on 31 August 2002.
2.4.3 A number of changes and improvements to CUDRC operations were made
during consultations on CUDRC’s approval by ASIC. A new single-tiered
governance structure, removing the separate operations of the CUDRC
Board and Council, commenced operations from 1 January 2003. A new
Board, comprised of an independent Chair, two consumer movement
representatives (appointed in consultation with peak consumer groups)
and two industry directors (appointed in consultation with participating
credit unions) was appointed.
2.4.4 The previous Chair of the CUDRC Council, the Hon Tom Waddell QC,
generously agreed to accept an invitation from the CUDRC Board to Chair
the new Board for a limited period while a new independent Chair was
appointed. The Hon Tom Waddell, in addition to extensive service and
12
contribution to CUDRC, had also chaired the independent Review of the
Credit Union Code of Practice through to 2003.
2.5 Present Position
CUDRC today has 143 participating credit unions, representing 85% of the
credit union section. 29 credit unions are members of a separate ASIC
approved scheme, the Financial Co-operative Dispute Resolution Scheme.
13
Chapter 3: The structure of CUDRC
3.1 The powers and role of the Manager 3.1.1 The Manager is appointed by the Board according to the Constitution of
CUDRC. To ensure independence, the Constitution requires the Manager
not to be a member or a director of the company, nor be a director or
employee of a credit union or act in a professional capacity for a credit
union.
3.1.2 The Manager’s powers are set out in the Terms of Reference of the scheme.
Under Clause 3 of the Terms of Reference, the Manager’s principal powers
and duties are to consider disputes within the Terms of Reference and to
facilitate the satisfaction, settlement or resolution of such disputes whether
by agreement, by making recommendations or determinations or by such
other means as may seem expedient.
3.1.3 The Manager’s role is further informed by the aim of the scheme, described
in clause 1.3 to be to provide an independent and prompt resolution of the
disputes described in clause 3 of the Terms of Reference having regard to
law, applicable industry codes or guidelines, good industry practice and
fairness in all the circumstances.
3.2 The structure and role of the Board 3.2.1 The corporate structure of CUDRC Pty Ltd is a company limited by the sole
shareholder of which is CUSCAL. The scheme is overseen by a Board of
Directors which has two industry representatives, two Consumers’
Directors and an independent Chairman.
14
3.2.2 The Board is not involved in considering or reviewing disputes. Its
principal roles are to:
• appoint the Manager and preserve his impartiality and
independence from the members;
• manage the business of the company;
• recommend and promote consultation about proposed changes to
the Terms of Reference;
• consider and agree the budget (submitted by the Manager); and
• commission an independent review of the operations and procedures
of the scheme every three years or more frequently.
The Board also has a role in receiving and considering complaints about the
operation of the scheme, although this must not involve reviewing disputes
or decisions made by the Manager or his staff.
3.2.3 The current Board members are:
Chair:
Tom Sherman, AO
Consumers’ Directors:
Gordon Renouf and Tony Devlin
Members’ Directors:
Louise Petschler, CUSCAL and
Peter Ford, Members Education Credit Union.
15
3.3 Membership of CUDRC
A current list of credit unions is available at www.CUDRC.com.au
3.4 The funding of the scheme
3.4.2 The total funding for CUDRC is provided as follows.
3.4.3 The Board of CUDRC has agreed with the Banking and Financial Services
Ombudsman Limited (BFSO) that BFSO will provide dispute resolution
services to CUDRC upon payment of an annual fee plus a charge per
written complaint received by CUDRC plus an hourly charge should a
complaint require investigation. BFSO also provides the services of the
Ombudsman as Dispute Manager.
3.4.4 The Board levies credit unions for an amount sufficient to cover the annual
fee referred to above and CUSCAL collects from credit unions and pays to
BFSO, the charges per complaint made by BFSO for dispute resolution
services.
3.4.5 BFSO meets on a cost recovery basis, the total cost of administering the
CUDRC scheme from the combination of the annual fee and the charge
made per complaint.
3.5 The people
3.5.1 BFSO provides the services of its Ombudsman as Dispute Manager, a
dedicated Case Manager for telephone queries and a Case Officer. The skill
and experience expertise of BFSO’s Legal Counsel and other Case Managers
16
are available to deal with complaints or provide information to credit
unions or their members on a needs basis.
17
Chapter 4: The jurisdiction of CUDRC
4.1 Introduction: the Terms of Reference of CUDRC
4.1.1 The structure and operation of the scheme and the powers and duties of the
Manager are set out in the Terms of Reference and the Constitution. The
Terms of Reference describe, amongst other things, the scheme itself and
the functions, powers and duties of the Manager.
4.1.2 The Manager in practice is able to make recommendations to the Board for
changes to the Terms of Reference. Unless the changes are minor, changes
may only be made after the Board has consulted with appropriate
individuals and organisations. The Board must consult with ASIC about all
changes, including those identified as minor.
4.1.3 Clause 5.3 of the Terms of Reference provides that the Manager must
publish dispute resolution procedures and develop guidelines for the
interpretation of these Terms of Reference and this was done to coincide
with the publication of the current Terms of Reference. The procedures are
designed to assist members, their advisers and credit unions. The
procedures may be amended from time to time.
4.2 The jurisdiction of CUDRC in summary
4.2.1 The Terms of Reference and the procedures set out and discuss the
jurisdiction of the Manager in detail and provide information additional to
that set out here. In summary, the Manager has jurisdiction to consider
disputes involving amounts of up to $100,000 brought by an individual or
small business, as defined in the Terms of Reference. That member must
have received the financial service the subject of the dispute, or have
18
provided the security relevant to the financial service or whose information
is the subject of a privacy dispute. The limit applies to each separate and
unrelated claim brought by the member. The Manager also has power to
make a non-binding Recommendation involving an amount by way of
compensation in excess of $100,000.00.
4.2.2 The small business eligibility provisions of the Terms of Reference have
changed over the years of CUDRC’s operation. Therefore, different tests
are applied to determine whether a small business is eligible to lodge a
dispute, depending on the date of the events, which first gave rise to the
dispute.
4.2.3 A dispute must relate to an act or omission by a financial services provider
in relation to a financial service in Australia or in relation to confidentiality
and privacy. A dispute, broadly, is defined as a disagreement between a
credit union and a member which has not been resolved and, if the member
is an individual, a privacy issue.
4.3 Matters outside the jurisdiction of CUDRC
4.3.1 CUDRC cannot consider a dispute in a number of situations set out in
Clause 4 of the Terms of Reference. They include that the dispute:
• Relates solely to a financial services provider’s commercial
judgement in a decision about lending or security, such as
assessment of risk, the taking or release of security or a decision to
lend or not, unless the dispute involves an act or omission in breach
of a duty owed at law, including a contractual duty;
19
• Relates solely to a practice or policy such as an interest rate or fee-
setting policy, unless an error is made in applying the policy or a
breach of any obligation or duty or serious misconduct is involved;
• Is or has been the subject of court proceedings or is more
appropriately dealt with by a court or in another forum, such as the
office of the Privacy Commissioner;
• Relates to events which occurred more than 6 years before the first
written notification of the dispute to the financial services provider;
• Involves a claim for more than $100,000 or a claim that is part of or
related to a larger claim involving more than $100,000.
However, the Manager may make a Recommendation in relation to
cases involving over $100,000.00. If a Recommendation is accepted
by a credit union, it becomes binding (Clause 8.5 to 8.12).
4.3.2 A court may be a more appropriate forum for a number of reasons
including that:
• Evidence from a third party not willing to cooperate in the process is
essential to the resolution of the dispute;
• The dispute is brought as a ‘fishing expedition’ to prepare for
contemplated court proceedings;
• The decision turns solely on an issue of credibility and it is more
appropriate that the evidence be given on oath and tested by cross-
examination;
20
• Resolution depends upon an inquiry into and a finding as to
whether criminal conduct has taken place; or
• The dispute is more efficiently brought in conjunction with existing
or contemplated proceedings involving third parties.
4.3.3 Clause 9 of the Terms of Reference sets out a test-case procedure. A credit
union may give notice to the Manager that the dispute involves an
important or novel point of law or an issue which may have important
consequences to the business of a credit union or credit unions generally.
The credit union must undertake to pay the members costs of any
proceedings issued within six months of the notice and seek to resolve the
dispute expeditiously. On receipt of the notice and the undertakings, the
Manager must cease consideration of the dispute.
4.3.4 The Manager has the power to decide whether a dispute falls within the
Terms of Reference (Clause 4). That decision will involve consideration of
any submissions made or further information provided by the member or
the credit union. The Manager’s decision as to whether a dispute is inside
or outside of the Terms of Reference is final.
4.4 The monetary limit: its rationale, past increases and future considerations
4.4.1 CUDRC was established in 1996 with a monetary limit of $100,000, which
has not changed.
4.4.2 In 2003 and 2004, none of the cases recorded by CUDRC involved claims of
more than the monetary limit. This may reflect the fact that the monetary
limit is easily communicated and understood.
21
4.4.3 For a dispute resolution scheme to be approved by ASIC and maintain
approved status it must have coverage sufficient to deal with:
• The majority of consumer complaints in the relevant industry and
the whole of the complaint; and
• Consumer complaints involving monetary limits up to a specified
maximum that is consistent with the nature, extent and value of
consumer transactions in the relevant industry [ASIC Policy
Statement 139.34].
4.4.4 In assessing a scheme’s monetary limit, ASIC will also consider:
• The nature of the complaints made to the scheme;
• The limits operated by other schemes with similar coverage; and
• The desirability of ensuring consistent coverage across schemes that
consider complaints about similar products or services, or have a
common membership. [ASIC Policy Statements 139.98 and 165.54].
4.4.5 Factors to take into account when considering the adequacy of CUDRC’s
monetary limit include:
• Increases in the size of housing and small business loans;
• Median house prices (houses are commonly the security for a
guarantee);
• Rises in the inflation index (17.9% between June quarter 1996 and
June quarter 2003);
• The Reserve Bank definition of small business lending (commercial
loans under $500,000);
22
• Expansion of member categories;
• The need to ensure that retail clients under the Corporations Act are
able to access the scheme;
• Parity with other schemes; and
• Increases in jurisdiction of the lower and middle level courts
(Magistrates’ and District or County Courts).
4.4.6 The relevant amount in a CUDRC claim is the amount in dispute not the
size of the facility or the value of the product. However, where the claim is
about issues such as maladministration in the decision to lend, guarantees,
poor investment advice or negligence in arranging insurance there is likely
to be a direct relationship between the size of the facility or transaction and
the size of the claim.
4.4.7 The monetary limit for CUDRC is generally lower than the limit for other
schemes that cover similar products and services, with some exceptions. In
life insurance matters, FICS can make binding determinations of up to
$250,000. IOS can make non-binding Recommendations for amounts
between $120,000 and $290,000. BFSO can make a binding determination in
relation to any financial service for an amount up to $250,000.
4.4.8 The jurisdictional limit of the District Court of New South Wales is $750,000
in civil cases. The jurisdiction of the County Court of Victoria is $200,000 in
non-personal injury civil cases. Different considerations apply to court
jurisdictional limits. However, it is important to bear those limits in mind
when considering the monetary limit for a scheme that is intended to be an
alternative to the courts.
23
4.5 Remedies available
4.5.1 A Determination of the Manager can include:
• A sum of money which does not exceed $100,000;
• Where the dispute involves a privacy issue, any other non-monetary
requirement that may be made under s 52 of the Privacy Act; and
• An order for the provision of information relating to the subject
matter of the dispute.
4.5.2 The Manager may require a credit union to pay compensation to a member
for loss or damage suffered as a result of the conduct of the financial
services provider, up to a maximum of $100,000. Compensation may take
the form of an actual cash payment or its equivalent, which may include the
reduction of a loan balance, the reconstruction of a loan or the reduction of
an interest rate on a loan.
4.5.3 Non-monetary remedies may include a determination that a contract or a
contract term is unenforceable or should not be enforced for reasons of law
or fairness. Other non-monetary remedies may form part of a negotiated
settlement. They may include refinance of a debt, the provision of a service
at a discounted rate or fee, a written apology or an acknowledgment of
error addressed, for example, to payees of wrongly dishonoured cheques.
24
Chapter 5: Dispute Resolution and decision-making processes
5.1 Accessing CUDRC 5.1.1 Members in dispute with a credit union can contact CUDRC:
• By telephone using the Financial Ombudsman Service (FOS) shared
telephone service: 1300 78 08 08 or TTY
(03) 9613 7344;
• By fax: (03) 9620 4446
• By writing: to GPO Box 3, Melbourne VIC 3001
Such contact arises normally when a member of a credit union finds
himself/herself in dispute with a credit union and, having attempted to
resolve that dispute with the credit union or the internal dispute resolution
mechanism of that credit union, makes contact with CUDRC usually upon
referral by the credit union but sometimes as a result of a recommendation
being made by a financial counsellor, Community Legal Centre or other
organisation which might have been consulted by the member.
5.1.2 FOS is a co-operative venture between BFSO, Financial Industry
Complaints Service Limited and Insurance Ombudsman Limited. It
provides customers with a single access number for assistance with
enquiries covered by those three schemes and also CUDRC, the Credit
Ombudsman Service Limited, formerly the Mortgage Industry
Ombudsman, the Superannuation Complaints Tribunal and the Insurance
Brokers’ Dispute Scheme.
5.1.3 The CUDRC website does not provide an online dispute lodgement service.
In practice, BFSO allows members to submit a dispute directly to a web
25
server via a secure encrypted area, which is used when CUDRC is asked to
facilitate lodgement of a dispute by such a method.
5.1.4 A TTY number allows callers with a speech or hearing impediment to
converse via text. An interpreting service is available for callers whose first
language is not English and arrangements can be made for written material
to be translated so that members can send correspondence to CUDRC in
their first language. Both services are used by callers, and are thought to be
an important initiative enabling all those who wish to use CUDRC to do so.
The CUDRC brochure is available on the website.
5.1.5 When a person first telephones CUDRC, the case officer answering the call
will assess whether the dispute is likely to fall within CUDRC’s jurisdiction
and if not will refer the caller to other organisations that may be able to
assist. The case officer will encourage the caller to contact the credit union
direct to try to resolve the dispute. The case officer provides the contact
details of the area nominated by the credit union to deal with customer
disputes. If the dispute appears to be within CUDRC’s jurisdiction,
CUDRC’s postal details are also provided so that the caller can lodge a
dispute if they are unable to resolve it with the credit union.
5.1.6 As an FSR requirement, licensees are required to provide details of their
external dispute resolution scheme to customers. That information is
generally provided in written material concerning disputes made available
by credit unions to members, on credit union websites and orally by credit
union employees to members.
5.1.7 If a member is unable to lodge a written dispute the case officer will take
the details of the dispute over the telephone and will then send a written
record of the dispute for them to verify and sign. Members can also
authorise an agent to bring the dispute and communicate on their behalf
26
with CUDRC and the member. The agent may be a friend, family member,
financial counsellor or other professional adviser.
5.2 After receipt of a written dispute 5.2.1 When a dispute is received the details of it are entered on to CUDRC’s
Case Information Management System (CIMS) (see Chapter 8 for more
information about CIMS and other systems). Information recorded is:
• Case number;
• Member name address and contact numbers;
• Credit Union complained about;
• Short summary of the dispute;
• The amount claimed;
• Product code(s) for the product(s) complained about; and
• Problem code(s) for the problem(s) complained about.
5.2.2. The case officer then assesses whether the dispute is within the Terms of
Reference and seeks advice from legal counsel if necessary. If it is not
within the Terms of Reference, CUDRC writes to the member explaining
why it is not within jurisdiction. Appropriate contact details are also
provided so that the member can pursue the dispute directly with the credit
union or contact any other relevant agency or organisation that may be able
to assist. However, the member is given the opportunity to respond to a
letter saying that a dispute is outside CUDRC’s Terms of Reference. A
member can then respond by establishing that the matter is within
jurisdiction, for example, by clarifying the nature of the dispute or the
amount claimed.
5.2.3 If the dispute appears to be within jurisdiction, the case officer will write to
the member acknowledging receipt of the dispute and explaining the
27
dispute resolution steps. The letter will enclose a brochure which explains
the CUDRC procedures, the CUDRC Privacy brochure and an authorisation
form which the member must sign and return to CUDRC. This form
enables CUDRC to obtain information from and disclose information to the
credit union. An authorisation form is also sent if the member wishes to
bring the dispute through an agent. The case officer will also write to the
credit union to give it the opportunity to resolve the dispute before further
consideration by CUDRC.
5.2.4 If the dispute is from a small business, the case officer will also ask the
business to sign a small business declaration and authority form which will
enable an assessment to be made of whether the business is an eligible
small business and will also identify the person authorised to discuss and
resolve the dispute on behalf of the business.
5.2.5 If the dispute is from an individual and relates to an alleged breach of
privacy, the member will be made aware of the option of referring the
dispute to the Privacy Commissioner.
5.3 Stages of Resolution: referral to and response by the member
5.3.1 The credit union has 30 days in which to either resolve the dispute or
provide a response to CUDRC addressing the issues raised by the dispute
and providing any documents that are relevant to the dispute. An
extension may be sought but reasons must be provided.
5.3.2 There may also be exceptional circumstances where an earlier response or
the fast tracking of the dispute generally will be required such as where the
sale of a security property is imminent or the health of the member
warrants a faster response.
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5.3.3 The credit union must write to CUDRC with a response that confirms the
outcome of its review of the dispute. The response will either be
notification that the dispute has been settled with a copy of correspondence
sent to the member or notification that the dispute has not been settled with
details of the credit union’s position.
5.3.4 If it appears to the case officer that the credit union’s response may have
resolved the dispute, the case officer writes to the member asking whether
the response has resolved the dispute and if not asks the member to explain
why they are not satisfied and provide any new or relevant information for
consideration. If it then appears that the matter, although not resolved,
may be able to be resolved fairly quickly, the case officer will refer the
member’s reply to the member for further consideration and may discuss
the prospects for resolution with the member and the credit union. During
this stage, as at all other stages, the member and the credit union are
encouraged to seek to resolve the dispute with or without the assistance of
CUDRC.
5.4 Stages of Resolution: Investigation
5.4.1 Where a case remains unresolved after it has been referred to the credit
union and the credit union has responded, the case will move into the
investigation process. In the twelve month period to 31/3/2005, 19.3% of
cases found to be within Terms of Reference were investigated.
5.4.2 When a case manager commences their investigation they will telephone or
write to the member and the credit union to:
• Outline their understanding of the dispute as put by the member
and the credit union’s response and asking for correction of any
misunderstanding of either the dispute or the credit union’s
29
response;
• Set out the legal, industry practice or factual issues they will be
addressing in the investigation; and
• Request any further information necessary for the assessment of the
dispute.
5.4.3 After the case manager has received the requested information, there are
several ways in which the dispute may be resolved.
5.4.4 Negotiated Settlement
At all stages of a dispute it is open to the parties to negotiate a settlement of
the dispute. The case manager will often facilitate a settlement by acting as
a conduit between the parties. If a resolution is reached the terms of the
settlement are set out in a Confirmation of Settlement form which is signed
by the member and sent to the credit union. Sometimes the credit union
will also require an additional Release and Indemnity. Members are
encouraged to seek independent legal advice before signing either of these
documents. In the year to 31/3/2005, a settlement was negotiated in 57
cases. (51.4% of the cases received which were within Terms of Reference).
5.4.5 Conciliation Conference
At any stage a case may be referred to a conciliation conference with the
Manager or with the case manager. This can be done at the suggestion of
the case manager or at the request of the member or the credit union. The
conference is arranged at a location geographically convenient to the
member, so in practice conciliation conferences could be held all over
Australia. The member may attend alone or with a person that they trust
and a legal representative may accompany them. The credit union must be
represented by an officer with knowledge of the case and authority to settle
30
it and may also have legal representation, if the member is legally
represented. If a resolution is reached the Heads of Agreement are
recorded and a Confirmation of Settlement form will be sent subsequently
to the member to sign. Members are encouraged to obtain independent
legal advice before signing the Confirmation of Settlement and any other
related documents. In the year to 31/3/2005, three cases were discussed at
a conciliation conference.
5.4.6 Finding
If the case is not resolved during the investigation process, the case
manager will write a Finding. The majority of cases referred to
investigation result in a Finding, which is a written decision on the merits,
with reasons. A Finding includes:
• A summary of the dispute;
• A summary of the issues raised by the dispute;
• The case manager’s analysis of the information, any applicable legal
principles, any relevant codes, the relevant standard of industry
practice and fairness; and
• The case manager’s conclusions about the merits of the dispute and
how it should be resolved.
5.4.7 The Finding is sent to both the member and the credit union. Any
documents relied upon in the Finding will either be available to the parties
on request or attached to the Finding. Both parties have 30 days in which to
accept or reject the Finding, providing reasons for any rejection.
Acceptance is acknowledged by the signing of a Confirmation of Settlement
form by the member (in cases where the Finding recommends the payment
of money or other compensation to the member). Members are encouraged
to seek independent legal advice if they have any concerns.
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5.4.8 Most Findings are subject to a quality assessment process. This involves a
review of the draft by legal counsel, the general manager or a senior case
manager, who will check the Finding to ensure that it identifies and
addresses the relevant issues, gives appropriate weight to relevant
information and is clear.
5.5 Stages of resolution: Determination
5.5.1 A party rejecting a Finding must provide reasons which may include the
following:
• There is some fact or matter relied upon in the Finding which is
incorrect, including information provided by the other party;
• There is additional relevant information which may change the
Finding;
• The analysis of the applicable law is incorrect; or
• Insufficient weight has been given to particular information.
5.5.2 The Manager must notify the parties of his intention to issue a
Determination. Either party is free to make further submissions about the
matters in dispute and has 30 days to do so.
5.5.3 If a Finding is rejected and the dispute is not otherwise resolved, the
Manager will provide a Determination. This is a written decision with
reasons taking into account the Finding, matters raised by either party in
response to the Finding or the other party’s reasons for rejecting it, and any
32
required legal or industry practice advice.
5.5.4 The Determination is sent to both parties. If the member rejects the
Determination, there is no further right of appeal and the member must
pursue the dispute elsewhere. The credit union is bound by the
Determination.
5.6 Procedural fairness in practice
5.6.1 The procedures of CUDRC are designed to ensure that the parties are given
a reasonable opportunity to present their case and to have an independent
decision provided in writing, with reasons, and logical analysis based on
relevant information. Written reasons will clearly identify the documents
or information relied upon, which will be annexed, sent to the parties, be
available on request or clearly summarised in the decision. If a party
requests that information be kept confidential from the other party it will
not be able to be relied upon in a decision adverse to the other party (see
Clause 5.9 of the Terms of Reference).
5.6.2 The investigation process is inquisitorial. This means that the case
managers and the Manager ask questions of the parties and require
information from them. This is done in the context of a letter sent to both
parties at the commencement of the investigation setting out a summary of
the dispute and the credit union’s response and the issues identified as
relevant. The letter gives both parties the opportunity to correct the
summary of the dispute and provide further relevant information.
5.6.3 Both parties may appeal the Finding and provide any new or additional
relevant information, which is considered before the issue of a
Determination by the Manager.
33
5.6.4 The quality assessment process, described in 5.4.8, is designed to ensure
that all relevant information is taken into account in reaching a decision,
and is given its appropriate weight, and the decision is properly made on
the balance of probabilities. The Manager is not bound by the rules of
evidence and may consider information provided by either party. It is
important, therefore, to ensure that such information is given its
appropriate weight.
5.6.5 There is an expectation that parties will participate in the process in good
faith. In addition, clauses 5.5 and 5.6 of the Terms of Reference allow the
Manager to require a credit union to provide any information the Manager
considers relevant to a dispute and require the credit union to comply with
such a request as soon as reasonably practicable except where:
• to do so would be in breach of a duty of confidentiality owed to a
third party; and
• the credit union has used its best endeavours to obtain consent to
disclosure.
In addition, if legal professional privilege applies to documents CUDRC
will not compel their disclosure.
5.7 Fairness in outcomes
5.7.1 How is independence of mind maintained when a scheme is funded by
industry? This is a question that is raised by some members and their
representatives and reflects a legitimate concern with ensuring that the
processes and outcomes of EDR schemes such as CUDRC are fair. In the
case of CUDRC, a number of structural and procedural factors operate to
34
ensure that the Manager and his staff are able to make independent
decisions and are supported in maintaining independence:
35
• The Manager is appointed by and answerable to a Board, with equal
representation of industry and consumer directors and an
independent Chairman;
• The staff, whilst employed by BFSO, are answerable to the Manager
not to credit unions. The Board does not and cannot interfere in
decisions about individual cases made by the Manager or his staff;
• CUDRC is also accountable to ASIC, which is an independent
government agency, as well as being generally accountable to the
Australian community;
• Quality and fairness in decision-making are assisted by the quality
assessment processes of CUDRC;
• Decisions about changes to the Terms of Reference are the subject of
consultation with government, industry and consumer
representatives;
• The policies, procedures and operations of the scheme are
transparent and information about them is available on the web site
Case studies are published in the Annual Report and from time to
time in the Bulletins issued by the scheme; and
• All staff involved in decision-making receive training in the
principles of natural justice and their application. Independence is
reinforced by the Manager and by the culture of the organisation.
Staff are supported in asserting independence where necessary.
The Board receives copies of Determinations made by the Manager.
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Chapter 6: Raising Standards: Ancillary roles of an EDR scheme
6.1 Identifying and resolving systemic issues 6.1.1 CUDRC Terms of Reference (Clause 12), and ASIC Policy Statement 139,
require CUDRC to identify systemic issues and serious misconduct, obtain
a response from the relevant credit union and report to ASIC.
6.1.2 In broad terms, a systemic issue is an issue, which will have a material
effect on a class of individuals or small business beyond the parties to the
dispute. Serious misconduct is conduct that may be fraudulent, grossly
negligent or involve wilful breaches of applicable laws.
6.1.3 Examples of systemic problems might be:
• Inadequate or misleading disclosure in documents given to
customers relating to a particular product or service;
• Application of an undisclosed or inadequately disclosed fee or
charge to members’ accounts or application of a fee in breach of the
Consumer Credit Code;
• Breaches of privacy affecting a group of members caused by system
malfunction or human error.
6.1.4 Examples of serious misconduct might be:
• Repeated failure to comply with the credit union’s obligations to
CUDRC or to comply with a relevant Code or law.
37
• Unwarranted threats or seriously inappropriate behaviour towards a
member.
6.1.5 Systemic issues are identified as early as possible and:
• Recorded in the systemic issues register by the CUDRC Systemic
Issues Manager as possible systemic issues;
• Notified to staff so that they can identify cases raising the issue;
• Referred to the credit union for a response, including information
necessary to determine whether a systemic issue in fact exists and, if
so, what solution is proposed to rectify the issue and identify and
compensate affected customers;
• If confirmed as a systemic issue, a ‘notable case code’ is created on
the CUDRC case management database for all cases which raise the
issue;
• Discussed with the credit union with the aim of resolving the issue,
including any necessary system or training changes; identification
and compensation of affected members, including any necessary
advertising; communication with affected members about the issue;
and a timeframe for implementation.
6.1.6 Systemic issues’ reporting is described below. Rectification of a systemic
issue will of course minimise the risk of a class action or regulatory action
but the process and its benefits in terms of member satisfaction and the
maintenance of trust appear to be well understood by credit unions.
38
6.1.7 Whilst a small number (3) of possible systemic issues have been identified
by the Manager since 1 September 2003, only one of which turned out to be
an issue which was reported to ASIC, but the Manager confirmed that it
had been dealt with to his satisfaction.
6.2 Member and external education 6.2.1 CUDRC contributes to the education of credit unions about issues raised in
disputes and dispute resolution processes in a number of ways.
6.2.2 The Manager and his Case Manager, Legal Counsel and EFT Team Leader
make presentations to and conduct training workshops with credit union
staff on a regular basis on issues such as the EFT Code, the procedures and
processes of CUDRC and other relevant issues as they arise.
6.2.3 Since 2002 CUDRC has published Bulletins which are addressed to all
credit unions and other interested stakeholders or observers and are
available on www.cudrc.com.au
6.2.4 Guidelines to the CUDRC Terms of Reference are available on its website
and, in practice, the BFSO Policies and Procedures Manual, which is
available on its website, contains an explanation of the procedures as well
as the policies followed by CUDRC in relation to particular types of
disputes which frequently arise in the financial services sector. They
provide commentary on the legal principles and industry practice issues
that apply to those disputes and may set out the questions that will be
asked in an investigation. The policies are designed to alert both members
and credit unions to the approach that will be applied to particular kinds of
disputes to encourage the parties to resolve the issue without necessarily
involving CUDRC. They also assist transparency and consistency in the
decision-making processes.
39
Chapter 7: Systems, Data Collection and Reporting
7.1 The use of technology in the CUDRC processes
7.1.1 CUDRC uses the purpose built Case Information Management System
(CIMS) to log and track all telephone enquiries and written disputes. The
CIMS application has been continually developed and improved since 1990,
when it was developed for BFSO.
7.1.2 In 2000, CIMS was rebuilt on a commercially available database engine. By
using a commercially available database in which to store the data, BFSO is
able to use sophisticated ‘off-the-shelf’ reporting tools to provide both
external stakeholder reporting and internal management reporting. The
same system is used by CUDRC.
7.1.3 Given the management by BFSO of CUDRC’s affairs, CUDRC uses the
BFSO telephone systems which are based on a Nortel Meridian Option 11
PABX. The PABX has an integrated Automatic Call Distribution function
(ACD) and a Voice Mail service. ACD queues are managed via the Avotus
Control Centre software package. Incoming calls are distributed to CUDRC
via the Financial Ombudsman Service Call Centre (“FOS”) described above
(5.1.2).
7.1.4 Calls are transferred to the CUDRC enquiries queue by the FOS staff. If
case officers are on other calls, callers receive an on-hold message via the
telephone system message service (Miran). Appropriate messages are
provided to callers at designated intervals.
7.1.5 Online subscription research resources and selected Internet sites are
available to all staff from their desktop computers and are used not only for
40
research on cases but also by case managers to enable appropriate and
accurate referral information to be provided while on the telephone to
callers. For security reasons, general Internet access is limited to one PC
located in the library. A Lotus Notes based Knowledge Management
System has been developed and was implemented in May 2004. Use of
technology is subject to an e-mail, telephone and Internet policy document
that was developed in consultation with staff.
7.2 Collecting and recording of case information
7.2.1 All telephone enquiries received by CUDRC case officers are logged into
CIMS, recording the following data:
• Basic demographics of the caller (gender, postcode, whether member
is an individual or a small business);
• Name of credit union being complained about;
• The financial product category being complained about and the
problem category raised;
• How the caller found out about the scheme.
7.2.2 All written disputes are entered into CIMS. CUDRC records the following
addition information for written disputes:
• Name and address;
• A summary of the issues raised by the member;
• Amount of compensation sought (and at the closure of the file the
amount of any compensation paid, if known);
• Detailed codes for each product/problem combination raised by the
member;
• Details of any systemic issue raised by the dispute; and
41
• Details of any alleged breach of the Code of Practice.
7.2.3 In addition to the above core information, CIMS also provides diary
recording of contact with the parties, actions taken or requested, or action
to be taken at a future date. CIMS records the relevant dates and the
current status of the case; and facilitates the generation of all outbound
correspondence by connecting with a set of standard letter templates.
7.2.4 Status codes record where the case is in the process and the level of
complexity of the case and facilitate the monitoring of time performance
targets for each stage. Problem and product codes enable the relative
proportion of disputes about particular products and problems to be
identified.
7.2.5 Case officers and managers also record keywords for cases describing the
legal or industry practice issues raised. Keyword searches can be made by
staff to find other cases raising similar issues and to facilitate consistency of
approach and the efficient use of legal or industry practice advice.
7.3 Reporting to stakeholders and the public
7.3.1 Credit unions can obtain regular reports on the number and status of all
cases received.
A more extensive statistical summary is provided to each credit union
annually.
A quarterly report is provided on the CUDRC website.
42
7.3.2 To management and staff:
• Monthly Summary Statistics for Open, Provisional and Closed cases
at the different levels, including performance against Key
Performance Indicators (KPIs – see 7.5.1). Some reports are run on a
daily basis to enable close supervision by management of selected
KPIs. The Monthly Summary Statistics reports are provided to all
staff;
• Separate reports for individual case officers and case managers are
produced to enable management of individual staff performances.
Each case officer and case manager is provided with their own
statistical summary, which includes some comparative data to
enable them to benchmark against their peers;
• Exception reporting is regularly undertaken to ensure that any
anomaly in case processing is identified early.
7.3.3 To the Board of CUDRC:
A statistical summary is provided to all Board members prior to each
quarterly meeting, accompanied by an explanatory memorandum.
7.3.4 To ASIC:
ASIC receives a quarterly statistical summary report and a quarterly
systemic issues report (referred to in more detail in 8.6).
43
7.3.5 To external stakeholders and the public:
CUDRC publishes an Annual Report, also available on its website, which
includes extensive statistical and prior year comparative information
covering such matters as:
• demographics of users;
• analysis of telephone calls received;
• new cases received;
• outcome of closed cases and relative levels of closed cases;
• case resolution times;
• analysis of products and problems; and
• disputes outside the Terms of Reference.
The Annual Report also contains illustrative case studies and a summary of
systemic issues with case studies.
7.3.6 Statistical information is also regularly provided to other interested parties
(for example, consumer groups).
7.3.7 Copies of reports made to the Board of CUDRC and credit unions will be
made available to the consultant appointed to conduct the Review.
7.4 Monitoring members’ compliance
7.4.2 To ensure credit unions comply with their obligations to the scheme and to
enable exceptions to be addressed promptly, an automated follow-up diary
system is integrated into CIMS which case officers and case managers use
44
to follow up any response that has not been received by the due date.
7.4.3 The Manager and Case Manager will also follow up with members any
issues or anomalies that appear in the statistical information reports. These
discussions may also include observations about patterns of problems with
particular products or areas of the credit union which have come up at case
officers or case managers regular meetings.
7.5 Performance targets
7.5.2 CUDRC has implemented the following case management KPIs. They are
reviewed regularly to ensure they remain relevant:
• 95% of all cases received to be processed within 7 days;
• 90% of cases identified for investigation to be allocated to a case
manager within 60 days; and
• 90% of all cases to be finalised within 120 days.
7.6 Recording and reporting systemic issues
7.6.2 The identification and resolution of systemic issues is described in 7.1
above. Systemic issues are recorded in two places - the systemic issues
register maintained by the Systemic Issues Manager and by use of the
systemic issues code in the CIMS record of individual cases in which a
systemic issue is raised. A systemic issues code is created for each systemic
issue identified to enable cases raising the same issue to be identified and
monitored as part of the resolution of the particular systemic issue.
7.6.3 The obligation to report to ASIC is an obligation to report all satisfactorily
resolved and rectified systemic issues without identifying the credit union
45
but including the nature of the issue and the numbers of instances involved.
In the case of unresolved issues where the credit union has failed to
respond adequately and has been given 10 days notice, CUDRC must
report the identity of the member, the details of the issue, the action taken
by CUDRC and the response by the credit union.
46
Chapter 8: Future planning for the Board of CUDRC
8.1 Issues for the future
8.1.1 CUDRC has now been in operation for nine years. It has been approved as
an external dispute resolution service by ASIC within the framework of the
regulation of financial services providers. It has engaged in a regular
process of internal and external review of its operations and procedures,
including the current review, and has evolved both in its jurisdiction and its
processes.
8.1.2 The current review is focussed on the extent to which the operations and
procedures of the scheme are meeting the criteria set out in ASIC Policy
Statement 139. As such it is part of a process of continual review and
improvement undertaken by the Board.
8.1.3 The issues for consideration by the Board include:
• Procedural or structural changes required to accommodate the
extension of the scheme to non-credit union, financial services
providers.
• Strategies for increasing awareness and understanding of the work
of CUDRC.
• The question of whether CUDRC should remain as a stand alone
scheme, managed by BFSO or should adopt some other strategy.
• The potential for greater use of online dispute resolution techniques.
47
• Reviewing the range of services provided and considering what
other services might usefully be provided to credit unions and the
community that are consistent with the independence of CUDRC.
• The potential for and desirability of changes to the monetary limit
and coverage of the scheme.
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Links for further information Credit Union Dispute Resolution Centre: www.cudrc.com.au (The CUDRC Terms of Reference are available on the CUDRC website.) Australian Securities and Investments Commission (for Policy Statement 139 follow links to Financial Services Reform publications and then policy statements): www.asic.gov.au Benchmarks for Industry-based Customer Dispute Resolution, Consumer Affairs Division, Department of Industry, Science and Tourism: www.selfregulation.gov.au/resources.asp Code of Banking Practice: www.bankers.asn.au National Alternative Dispute Resolution Advisory Council: www.nadrac.gov.au Other external dispute resolution schemes in the financial services sector: Banking and Financial Services Ombudsman: www.bfso.org.au Credit Ombudsman Service Ltd: www.creditombudsman.com.au Financial Co-operative Dispute Resolution Scheme: www.fcdrs.org.au Financial Industry Complaints Service Ltd: www.fics.asn.au Insurance Brokers Disputes Ltd: www.ibdltd.com.au Insurance Ombudsman Service: www.insuranceombudsman.com.au Superannuation Complaints Tribunal www.sct.gov.au UK Financial Services Ombudsman: www.financial-ombudsman.org.uk Canada Ombudsman for Banking Services and Investments: www.obsi.ca
49
Appendix 1: ASIC Policy Statement 139.151 The benchmarks and their underlying principles 1 Accessibility The scheme makes itself readily available to customers by promoting knowledge of its existence, being easy to use and having no cost barriers. 2 Independence The decision-making process and administration of the scheme are independent from scheme members. 3 Fairness The scheme produces decisions which are fair and seen to be fair by observing the principles of procedural fairness, by making decisions on the information before it and by having specific criteria upon which its decisions are based. 4 Accountability The scheme publicly accounts for its operations by publishing its determinations and information about complaints and highlighting any systemic industry problems. 5 Efficiency The scheme operates efficiently by keeping track of complaints, ensuring complaints are dealt with by the appropriate process or forum and regularly reviewing its performance. 6 Effectiveness The scheme is effective by having appropriate and comprehensive terms of reference and periodic independent reviews of its performance.
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