Fact Sheets | Problems with your Loan : Have a dispute you can't resolve with your credit provider? |
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What is an External Dispute Resolution Scheme (‘EDR’)? There are several EDR schemes in Australia; the relevant one for your dispute depends on who you have a dispute with. EDR schemes are FREE and are independent of their members. The first thing to do if you have a dispute with your credit provider is to try and resolve it directly with them. Your complaint to an EDR scheme will usually not be processed unless you have first tried to resolve your complaint directly with the lender. If this is unsuccessful, you must first identify which EDR scheme to use. Below we have provided a list of EDR schemes available for borrowers in NSW, and you will be able to identify which scheme is relevant for your dispute. If you have a serious dispute with your lender it is usually wise to first obtain legal advice. But you can still make a complaint to the relevant EDR scheme even if you haven’t first obtained legal advice. There is a list of handy contacts at the end of this fact sheet. List of EDR Schemes For disputes with credit providers:
This fact sheet provides information about EDR schemes to use if you have an unresolved dispute with your credit provider. But there are 2 other useful EDR schemes to contact if you can’t resolve your dispute with your Telecommunications or Insurance provider:
Have a look at the contacts section at the end of this fact sheet for contact details for these 2 EDR schemes. Which EDR Scheme should you use? 1. Banking and Financial Services Ombudsman (BFSO) You should contact the BFSO if you have a dispute with your retail bank or one of its affiliates, such as Esanda (affiliated with ANZ), and you are unable to resolve the dispute. All retail banks in Australia are members of the BFSO. There are also a number of finance companies and brokers who are members of the BFSO (for example GE Money). You can check who is a member of the BFSO by ring the BFSO or going to their website. The BFSO will consider and investigate your dispute and will then make a decision that is binding on the financial service provider (usually a bank or a subsidiary of a bank). However, borrowers are NOT bound by the decision; you can either accept or reject the decision. To complain to the BFSO you must be seeking to recover a loss, either financial or non-financial, that has arisen as a result of a bank error. The amount must be less than $250,000. There is a time limit involved. The incident you are complaining about must have occurred within 6 years of making your complaint. Otherwise you may be out of time for making a complaint. Warning: If the bank is threatening to commence court action against you, do not try to resolve the dispute with the bank first, instead complain to the BFSO immediately. This is because the banks have agreed with the BFSO not to commence court proceedings while a complaint is being investigated at the BFSO. How do you contact the BFSO? 2. The Credit Union Dispute Resolution Centre (CUDRC) CUDRC can only consider complaints about members of CUDRC. You should be aware that not all credit unions are members of CUDRC. Check if your credit union is a member of CUDRC on www.cudrc.com.au or on the contacts listed below. If your credit union is not a member of CUDRC check to see if it is a member of the Financial Co-operative Dispute Resolution Scheme (detailed below). You must be seeking to recover a loss that is less than $100,000 to complain to CUDRC. You should note that CUDRC cannot consider complaints about a credit union product or service provided before 1/11/96. There is a time limit involved. To complain to CUDRC the event must have occurred within six years of making your complaint to the credit union or CUDRC. Warning: If the credit union is threatening to commence court action against you, you should instead complain immediately to CUDRC. This is because the banks have agreed with the CUDRC not to commence court proceedings while a complaint is being investigated at the CUDRC. How do you contact CUDRC? Telephone: 1300 78 08 08 3. The Financial Co-operative Dispute Resolution Scheme (FCDRS) FCDRS will consider and investigate your dispute and will then make a decision that is binding on the financial service provider However, borrowers are NOT bound by the decision, you can either accept or reject the decision. FCDRS can only consider complaints about its own members, which include some Credit Unions and Building Societies and certain other financial institutions. You should be aware that not all credit unions are members of FCDRS. IF your credit union is not a member of FCDRS it may be a member of CUDRC. The contact details are provided below. There is a time limit involved. To complain to FCDRS the incident or event must have occurred within six years of making your complaint. Warning: If your credit union or building society is threatening to commence court action against you, you should complain immediately to FCDRS instead of trying to sort it out direct. This is because the banks have agreed with the FCDRS not to commence court proceedings while a complaint is being investigated at the FCDRS. How do you contact the FCDRS? 4. The Credit Ombudsman Service (formerly Mortgage Industry Ombudsman Service) COSL can only consider complaints about their member lenders. You should be aware that not all mortgage lenders, mortgage managers and mortgage brokers are members of COSL. You should first check if your lender is a member of COSL on the contact details below. There is a time limit involved. To complain to COSL the event must have occurred within six years of making your complaint to the mortgage lender or COSL. Warning: If your mortgage lender is threatening to commence court action against you, you should instead complain immediately to COSL. This is because the banks have agreed with the COSL not to commence court proceedings while a complaint is being investigated at the COSL. How do you contact the Credit Ombudsman Service Limited? Hints for writing your letter to an EDR scheme This example letter is of a complaint to the BFSO. You can use it as a guide and adapt it for any of the EDR schemes. Use a simple structure for your letter. You should include the following details in your letter: Facts
a. My dispute The bank should have cancelled the direct debit when requested. As the bank did not cancel the direct debit as I requested, I lost $110 from my account. b. What I want? I want the (name of EDR scheme) to investigate and make a Finding that the bank must:
c. Keep a copy of the complaint letter you send to the EDR scheme.
Other useful external dispute resolution schemes are: Getting help Legal Advice Private Solicitor: See your local phone book or NSW Law Society Solicitor Referral Service: Sydney: (02) 9926 0300, Rest of NSW: 1800 422 713 Legal Aid: visit www.legalaid.nsw.gov.au or telephone one of the following offices to make an appointment to see a civil law solicitor.
Law Access: visit www.lawaccess.nsw.gov.au Phone: 1300 888 529 (TTY: 1300 889 529) Other Information Commercial Division of the Consumer, Trader & Tenancy Tribunal (CTTT): phone: 1300 135 399 or visit www.cttt.nsw.gov.au Telecommunications Industry Ombudsman (TIO): Phone 1800 062058 or visit www.tio.com.au Insurance Ombudsman Scheme (IOS): Phone:1300 36 36 83 or visit www.iecltd.com.au NSW Community Legal Centres: Ph: 9318 2355 Financial Counsellors: Credit and Debt Hotline: 1800 808 488 Rural Counsellors: visit www.daff.gov.au/agriculture-food/aaa/rfcs/counsellors/nsw Interpreters: 13 14 50
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