Credit Ombudsman // Members FAQ's

Why should I become a Member?

Joining an EDR scheme is a key tool for managing risk and is good for business. By becoming a Member of the Credit Ombudsman Service you are demonstrating your commitment to raising the standard of service and performance within the Credit Industry. And your customers will have access to an independent, experienced, professional organisation to assist them in resolving complaints they may have regarding your services.

Being a Member of an EDR scheme can also save you money. The cost of resolving a dispute through a scheme such as the Credit Ombudsman Service is significantly less expensive, not to mention less stressful, than taking a complaint through the court system.

If you are a Full or Life Member of the Mortgage & Finance Association of Australia (MFAA) you are required by the constitution of that body to be a Member of the Credit Ombudsman Service, although it is possible to obtain an exemption through membership of another EDR scheme.

If you arrange, or give advice regarding Mortgage Offset Accounts you can take advantage of ASIC's recent announcement of a licence exemption by joining the Credit Ombudsman Service. The ASIC Class Order (CO 03/1048 issued 8 December 2003) provides that a person who is a member of an eligible External Dispute Resolution (EDR) scheme need not hold an AFS Licence to provide advice or arrange a mortgage offset account. The Credit Ombudsman Service is such an ASIC approved EDR scheme.

What if I'm already a member of an EDR Scheme?

In some circumstances you may need to be, or wish to be, a member of more than one EDR Scheme. EDR Schemes have rules which govern the handling of complaints about Members who are also Members of more than one scheme. In general a complaint will not be considered by an EDR scheme if it has been previously considered by another Court, Tribunal or EDR scheme.

In certain circumstance, if you are a member of another ASIC approved EDR scheme, such as the BFSO, CUDRC, FCDRS (and in some cases FICS) you may be exempt from joining the Credit Ombudsman Service. You should seek advice from your legal advisor. If you think you may be eligible, you will need to make an application in writing to the Secretary of COSL.

Do I need to be a member of the MIAA to join the Credit Ombudsman?

No, you do not need to be a Member of the MFAA to join. Under the Credit Ombudsman Constitution those who work in the Credit Industry who are not members of the MFAA are eligible for Membership.

Applicants in this category will not be required to become a member of the MFAA or to adhere to the MFAA Code of Practice. However, they will have to comply with any Code of Practice or Dispute Resolution process that may apply to them as Members of other industry bodies and which the Credit Ombudsman Service Limited Board has approved.

I've sent in my application but I haven't heard anything

When your application and payment has been received it will be processed and presented to the Directors for approval. Once approval has been granted you will receive notification from the Credit Ombudsman Service along with your Membership Number. We make every attempt to process your Membership as quickly as possible.

Why should I respond to inquiries by the Credit Ombudsman Service?

Failing to take Customer complaints seriously is bad for business, and can prove costly.

If you are a Member, not responding to inquiries concerning a complaint made to the Credit Ombudsman Service can have serious consequences. A Member's failure to respond to efforts by the Scheme Manager to resolve a complaint can result in an adverse finding by the Credit Ombudsman as the matter can proceed without your response.

In addition, the longer it takes to deal with a complaint, the more expensive it is. Members are billed for each complaint on the basis of the Stage at which it is completed. It is in the interest of Members that inquiries are responded to as quickly as possible. Click here for further fee information.

Who pays the "costs" of the Credit Ombudsman's Determination?

In addition to the Annual Membership Fees, Members are charged a Service Fee for complaints received about them. There are five fee categories based on the stage at which a dispute is resolved.

If a complaint goes to a hearing each party bears its own legal costs and expenses. In general, the Credit Ombudsman will not make an award of costs. However costs may be awarded against a Member if a hearing has been held in relation to a complaint because the Member specifically asked for it. In that case, the Member will be required to meet the reasonable costs of the consumer attending the hearing, including travel and accommodation.




		Why should I become a Member? Joining an EDR scheme is a key tool for managing risk and is good for business. By becoming a Member of the Credit Ombudsman Service you are demonstrating your commitment to raising the standard of service and performance within the Credit Industry. And your customers will have access to an independent, experienced, professional organisation to assist them in resolving complaints they may have regarding your services. Being a Member of an EDR scheme can also save you money. The cost of resolving a dispute through a scheme such as the Credit Ombudsman Service is significantly less expensive, not to mention less stressful, than taking a complaint through the court system. If you are a Full or Life Member of the Mortgage & Finance Association of Australia (MFAA) you are required by the constitution of that body to be a Member of the Credit Ombudsman Service, although it is possible to obtain an exemption through membership of another EDR scheme. If you arrange, or give advice regarding Mortgage Offset Accounts you can take advantage of ASIC's recent announcement of a licence exemption by joining the Credit Ombudsman Service. The ASIC Class Order (CO 03/1048 issued 8 December 2003) provides that a person who is a member of an eligible External Dispute Resolution (EDR) scheme need not hold an AFS Licence to provide advice or arrange a mortgage offset account. The Credit Ombudsman Service is such an ASIC approved EDR scheme. In certain circumstance, if you are a member of another ASIC approved EDR scheme, such as the BFSO, CUDRC, FCDRS (and in some cases FICS) you may be exempt from joining the Credit Ombudsman Service. You should seek advice from your legal advisor. What if I'm already a member of an EDR Scheme? In some circumstances you may need to be, or wish to be, a member of more than one EDR Scheme. EDR Schemes have rules which govern the handling of complaints about Members who are also Members of more than one scheme. In general a complaint will not be considered by an EDR scheme if it has been previously considered by another Court, Tribunal or EDR scheme. In certain circumstance, if you are a member of another ASIC approved EDR scheme, such as the BFSO, CUDRC, FCDRS (and in some cases FICS) you may be exempt from joining the Credit Ombudsman Service. You should seek advice from your legal advisor. If you think you may be eligible, you will need to make an application in writing to the Secretary of COSL. Do I need to be a member of the MIAA to join the Credit Ombudsman? No, you do not need to be a Member of the MFAA to join. Under the Credit Ombudsman Constitution those who work in the Credit Industry who are not members of the MFAA are eligible for Membership. Applicants in this category will not be required to become a member of the MFAA or to adhere to the MFAA Code of Practice. However, they will have to comply with any Code of Practice or Dispute Resolution process that may apply to them as Members of other industry bodies and which the Credit Ombudsman Service Limited Board has approved. I've sent in my application but I haven't heard anything When your application and payment has been received it will be processed and presented to the Directors for approval. Once approval has been granted you will receive notification from the Credit Ombudsman Service along with your Membership Number. We make every attempt to process your Membership as quickly as possible. Why should I respond to inquiries by the Credit Ombudsman Service? Failing to take Customer complaints seriously is bad for business, and can prove costly. If you are a Member, not responding to inquiries concerning a complaint made to the Credit Ombudsman Service can have serious consequences. A Member's failure to respond to efforts by the Scheme Manager to resolve a complaint can result in an adverse finding by the Credit Ombudsman as the matter can proceed without your response. In addition, the longer it takes to deal with a complaint, the more expensive it is. Members are billed for each complaint on the basis of the Stage at which it is completed. It is in the interest of Members that inquiries are responded to as quickly as possible. Click here for further fee information. Who pays the "costs" of the Credit Ombudsman's Determination? In addition to the Annual Membership Fees, Members are charged a Service Fee for complaints received about them. There are five fee categories based on the stage at which a dispute is resolved. If a complaint goes to a hearing each party bears its own legal costs and expenses. In general, the Credit Ombudsman will not make an award of costs. However costs may be awarded against a Member if a hearing has been held in relation to a complaint because the Member specifically asked for it. In that case, the Member will be required to meet the reasonable costs of the consumer attending the hearing, including travel and accommodation. Copyright Credit Ombudsman Service Limited Powered by an Elf