David Bell, Chief Executive of the ABA, said: “During times of economic upheaval and the unprecedented credit crisis which banks are experiencing, I am not surprised that the workload of the Ombudsman has increased.”

“The most pleasing aspect of the 2007-08 data is that 93% of disputes are resolved by banks and other BFSO members themselves. This means that out of 4 332 cases only 303 needed further investigation or review by the Ombudsman.”

“It is important to note that if you have a complaint about your bank, customers should speak to their bank in the first instance. If you are not satisfied with the result, then the Ombudsman is able to consider the dispute.”

When looking at the data, it should be noted that there has been a considerable increase in new members of the BFSO over this survey period – most of these were non-bank lenders.

In the product categories identified by the Ombudsman, ABA analysis of the cases involving a dispute over the past few years shows:

• consumer finance – increases over recent years have been strongly driven by credit card companies – not banks;
   
• housing finance – while there has been a significant increase in disputes this year, at the same time the membership of the BFSO has grown by a large 30 new members, most of which are non-bank lenders;
   
• payment systems – disputes remain reasonably steady over time. The small increase of 2% year-on-year in disputes relating to payment systems is well below the growth in transaction volumes of just over 8%. It is positive news that over the past four years ATM disputes have shown a strong fall;
   
• deposit accounts – these disputes have been falling over three consecutive years (from 841 in 2004-05 to 686 in the latest survey), while at the same time, the number of bank accounts and transaction volumes have been rising;
   
• Business facility – disputes remain reasonably steady and, of particular note, business cheque accounts disputes have recorded a solid fall over the past four years.

Mr Bell said: “While no-one likes to be in dispute with their bank, the independent Ombudsman plays a crucial role in external dispute resolution services.”

“In effect, customers have an independent umpire to whom they can turn and can be accessed at no cost. The Ombudsman will review the dispute and make a ruling.”

Mr Bell added that the Code of Banking Practice is a clear signal that banks continuously work to lift their standards. The Code, currently under review, is a positive initiative for bank customers and assists the dispute resolution work of the Ombudsman’s office.

The Code of Banking Practice is published on the ABA website or free call the ABA on: 1800 009 180 and a copy will be mailed to you.