Australian Bankers’ Association welcomes
new national Ombudsman service

Sydney, 10 July, 2008: The Australian Bankers’ Association (ABA) has welcomed the launch of the new Financial Ombudsman Service (FOS) which will provide free assistance to customers who have a dispute or complaint about a financial product or service.

The FOS was launched today in Melbourne by the Minister for Superannuation and Corporate Law, Senator the Hon. Nick Sherry.

The FOS is the result of a merger between the Banking and Financial Service Ombudsman (BFSO), the Financial Industry Complaints Service (FICS) and the Insurance Ombudsman Service (IOS). It covers complaints about financial services including banking, credit, loans, general insurance, life insurance, financial planning, investments, stockbroking, managed funds and superannuation.

The Financial Ombudsman Service has a Banking and Finance division which will provide the dispute resolution service previously conducted by the BFSO.

David Bell, Chief Executive of the ABA, said: “The relevant schemes have recognised the consumer benefits of a one-stop shop for their customers. It makes sense to consolidate three key financial services external dispute resolution schemes which can now be accessed through a single gateway.”

“The schemes have shown that the private sector is able to deliver these benefits for their customers and we congratulate the Minister for allowing the schemes to achieve this outcome.”
 
“Banks’ customers, as well as customers of other financial service providers, will not be charged for using this service and a dispute will be handled fairly and quickly as possible.”

“It is important that there is an independent umpire who can determine what went wrong if there is a dispute and make a ruling which is binding on the bank or other financial service provider.”

The banking industry is pleased that Mr Colin Neave is the new Chief Ombudsman (he was formerly the Banking and Financial Services Ombudsman). Mr Philip Field has been appointed the Ombudsman for the Banking and Finance division of FOS and will be in charge of the banking issues that are handled by the scheme.

Notes for editors
Bank customers who are unhappy with a financial product or service should first complain to their bank and ask it to resolve the dispute in accordance with its Internal Dispute Resolution process. FOS is an independent External Dispute Resolution service which bank customers can use if they are unable to resolve the dispute through the internal process. If the dispute remains unresolved, FOS can then offer conciliation processes or it may investigate the dispute and issue a written decision on your case which is binding on the financial services provider.

For further information:

ENDS