Media release 11 July 2024
Financial limits for complaints are being raised across the four approved financial dispute resolution schemes, from 18 July 2024, meaning more consumers can have their disputes resolved without going to court.
The government is aligning the rules of the four approved financial dispute resolution services, giving more consumers access to free dispute resolution.
The four services—the Banking Ombudsman Scheme, the Insurance & Financial Services Ombudsman Scheme, Financial Services Complaints – a Financial Ombudsman Service, and the Financial Dispute Resolution Service—will have the same thresholds for complaint values and compensation, providing consistency for consumers across the sector. The services provide free, fair, and independent resolution of customer complaints about financial services.
The key change is raising the maximum compensation to $500,000 +GST. Previously, consumers with financial disputes over $350,000 +GST (or $200,000 +GST for the Financial Dispute Resolution Service) were not eligible for free dispute resolution and would have to go to court instead.
Additionally, the maximum compensation for non-financial loss, such as stress and inconvenience, will increase to $10,000 +GST, and what this can be awarded for will be standardised across all four services.
The services fully support the changes and believe that aligning the rules will enhance and standardise access to independent dispute resolution. The changes represent a significant step forward in ensuring that more consumers have access to free and fair dispute resolution.
The Financial Service Providers (Rules for Approved Dispute Resolution Schemes) Regulations 2024 will take effect on 18 July 2024.
ENDS
Media contact
Nora McGlinchey
Communications Manager - Financial Dispute Resolution Service
0508 337 337