Credit Ombudsman Service Limited - Membership

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Are there any fees for COSL hearing a complaint?

Members are charged Service Fees (Complaint Fees) on a complaint by complaint basis. Fees are usually billed progressively, at the end of each stage of the COSL Complaint Process.

View a breakdown of the Credit Ombudsman Service Fees

Are there any other costs associated with being a COSL Member?

Members are charged complaint fees on a complaint by complaint basis. The complaint fee’s are set out in the Complaint Fee Schedule.

Do I need to be a member of the MFAA, or any other association to join the Credit Ombudsman Service?

No, you do not need to be a Member of the MFAA or any other association to become a COSL Member.

Do my "Complaint Vouchers" accumulate?

No, the Voucher is not transferable or cumulative.

How do I add a Credit Representative?

If you wish to authorise a Credit Representative under your Membership, you will need to advise us in writing of the authorisation.

Once we have received the authorisation letter along with a Membership application for a Credit Representative (unless already a Member or being added under a credit representative membership) the Credit Representative will be noted under the Membership.

How do I apply to become a Member?

To become a member of the Credit Ombudsman Service simply complete a COSL Member Application form and submit with your payment of the application fee and yearly membership fee.

How do I claim on my "Complaint Voucher"?

Once the complaint has been closed email our accounts department. and state:

your Membership number; and
the complaint number to which the voucher is to be applied.

Once we receive your request, the complaint fee/s will be refunded or waived within 7 working days.

How do I remove a Representative?

If you wish to remove a Representative or Credit Representative from your Membership, simply contact us and we will remove it from your record.

By removing a Credit Representative from a licence holders Membership, the Credit Representatives Membership will not be affected and still be active, however the link between the two will simply be removed.

How do I renew my Membership?

Your Membership is due to be renewed every 12 months on the anniversary of your Membership application approval.

We will send you a renewal form to either your registered email address or postal address. If we cannot reach you, and your Membership lapses, you can contact us and we can forward the renewal form to you once we have updated your details.

How does COSL work?

COSL has established a set of rules called the Credit Ombudsman Service Rules

These Rules set out:

who can make a complaint to the Credit Ombudsman Service
what matters can be the subject of a complaint
what matters are not covered by the Credit Ombudsman Service
what procedures apply for making a complaint to the Credit Ombudsman Service and having that complaint resolved.

The Credit Ombudsman Service is appointed and supervised by the Board. However, the day to day functions of the Credit Ombudsman Service are carried out by the Credit Ombudsman. The Ombudsman is responsible for:

managing the receipt and resolution of complaints
carrying out a conciliation role between consumers and members.

If a complaint is not resolved by conciliation it is referred to the Credit Ombudsman for a binding determination or award. The Ombudsman’s determination is binding only if the Consumer accepts it in full as final satisfaction of their complaint.

How does the Credit Ombudsman enforce a determined settlement?

Once the Credit Ombudsman has made a Determination or Award you are given 28 days written notice to comply. If a Member fails to comply the Credit Ombudsman:

can take action to suspend or cancel that Member’s membership of the Credit Ombudsman Service.
must give written notice of any suspensions or cancellations to ASIC.
must give written notice of the fact to any relevant industry body of which that Member is also a member.
can bring legal proceedings against the Member for recovery of the amount awarded.

How does the Credit Ombudsman make a determination?

The Credit Ombudsman can propose a settlement on terms which are fair to both parties. When determining a complaint the Credit Ombudsman will consider:

relevant legal requirements
relevant industry Recognised Code of Practice
good practice in the Credit Industry
fairness in all the circumstances

How long does it take to process my application to become a Member?

When your application and payment has been received it you will receive notification from the along with your membership number. We make every attempt to process your Membership as quickly as possible, generally within 7 working days.

How man complaints can I use the "Complaint Voucher" for?

The voucher is only valid for one complaint and cannot be used to obtain a refund of Complaint Fees on another complaint.

How much does it cost to become a Member?

When joining COSL as an Australian Credit Licensee (ACL) holder, there is a one-off application fee of $165.

When joining COSL as a Credit Representative, there is a one of application fee of $75.

In addition, there is a yearly membership fee, which is calculated according to the size and nature of your business either at the time you apply or renew your Membership.

How often can I use the "Complaint Voucher"?

The voucher can only be used once in a membership year (a membership year is the 12 month period commencing on the effective date of COSL membership or renewal).

I am a Credit Licensee, is there a fee to add a Credit Representative?

No, there is no fee in adding a Credit Representative as being authorised under your Membership. However, a fee will apply if you wish to add an employee representative. This fee is $45.

I have a partnership and want to be a member, what do I need to do?

In the case of a partnership, we will register the partners as the Member and will record the partnership and/or trading names on your Membership.

I have a website about financial products, do I need a Membership?

If you run a website that gives advise or refers the best product for a customers situation, then you are giving financial advice and will need to be a COSL member.

However, if you website only states the specifics about a product, or a products features or rates a product or a service (without advising which is the best option over another) then this is simply a review and you will not need a COSL Membership.

I only refer people, or introduce products, do I need a Membeship?

Yes, if you are referring people to a product or a financial institution and receiving a payment for this, then you are giving financial advice and will need to be registered with ASIC and have a COSL Membership.

Should I provide my ACN or ABN?

If you hold an ACN you can provide this without providing your ABN, however if you only hold an ABN it is not necessary to apply for, or to provide and ACN.

The Partners on my Membership have changed, what do I need to do?

Partners registered as a Member must, within five business days of a change of composition of the partnership, notify us of the names of the persons who have ceased to be partners and the names of the persons who have become partners as well as the dates upon which each such change occurred.

What are COSL’s objectives?

The main objectives of COSL are to:

act as the primary disputes resolution body for the credit industry
actively facilitate the resolution of disputes concerning all aspects of the provision of credit and associated services to consumers by Members.

What can I use the "Complaint Voucher" for?

The Voucher can only be used for complaint fees and does not apply to:

awards (Orders) made by the Ombudsman against a Member; and/or
actual costs of expert advice obtained by COSL; and/or
actual costs of third party mediation.

What happened when a Customer makes a complaint?

When COSL receives a complaint the first step is to ensure the complainant has approached the Member to try and resolve it through the Members Internal Dispute Resolution process.

COSL’s Rules state that every Member must have a Complaints Contact Person and an Internal Dispute Resolution (IDR) Procedure in place.

The IDR Procedures require you to give a substantive response to a complaint as soon as possible but must be within 45 days. A substantive response includes:

Accepting the customers complaint and where appropriate offering redress
Offering redress without accepting the complaint
Rejecting the complaint.

If you are unable to give a substantive response within 45 days you must give the customer reasons for your delay.

If the customer has been through your IDR Procedure and is not satisfied with the outcome, they are entitled to make a formal complaint to the Credit Ombudsman Service (COSL).

At this stage the COSL will send details of the complaint and any accompanying documents to you. You must then give a response to the COSL as soon as possible and within 21 days of receiving notification of the complaint.

What happens after I apply for COSL Membership?

Once your application has been received, it will be processed and approved within 7 business days. You will receive a notification from our Membership Team and will be provided with your Membership Number. A welcome pack is then sent to you with your Membership Certificate.

What happens if I don’t respond to a COSL complaint?

Failing to take Customer complaints seriously is bad for business, and can prove costly.
If you are a Member, not responding to a complaint made to COSL can result in higher complaint fees. Failing to respond to COSL’s requests to resolve a complaint can result in a finding by the Credit Ombudsman that may not be in your favour.

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 our requests are responded to as quickly as possible.

What happens if we cant reach a mutually agreed resolution?

If the complaint is not resolved by Conciliation, COSL will then refer the complaint to the Credit Ombudsman for a Determination.

The Credit Ombudsman will decide what procedure to adopt in determining the complaint, in a manner which is fair to both the Member and the Complainant. This usually involves considering a complaint based on the documentary evidence supplied or in exceptional cases by holding a hearing.

If a hearing is conducted, the Credit Ombudsman will give direction as to how the hearing will be conducted and if any legal representation is required. The Credit Ombudsman may also request relevant information or documentation be provided.

What happens once I respond to the complaint?

If the customer is not satisfied with your response they can ask COSL for help to resolve the complaint through a ‘conciliation process’.

During the Conciliation stage COSL can:

facilitate informal negotiations between you and the customer
conduct alternative dispute resolution processes, such as mediation
make recommendations to you and the Customer about resolving the dispute
prepare a ‘Conciliation Settlement’ if an agreement is reached at this stage.

We try to complete this process within 45 days, however in some cases this can be extended to 90 days.

If COSL forms the view that it will be unable to further assist the parties to achieve resolution of the complaint in the conciliation phase, the COSL may declare the conciliation phase completed.

What if I'm a Member of another 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.

What is a determination settlement?

A determination settlement may include:

a requirement that the Member pay compensation for any Direct Loss the Credit Ombudsman determines the customer has suffered, up to $250,000
an order that the Member do, or refrain from doing, some act in relation to the subject matter of the complaint.

Once the Credit Ombudsman has proposed a settlement both parties to a complaint have one month in which to accept and sign an agreement.

If the customer chooses not to sign, the Credit Ombudsman may declare the complaint closed without resolution. If the consumer accepts but the Member fails to sign within one month the Ombudsman may make a binding Award in terms of the Determination Settlement.

Any Determination Settlement or Award made by the Credit Ombudsman will be in writing and will include a statement of reasons.

When can I use the "Complaint Voucher"?

The Free Complaint Voucher can be used if it meets the following criteria:

the complaint was received by COSL after 31 January 2007; and
COSL has closed the complaint; and
if and as long as any fee/s invoiced by COSL have been paid by the due date (a fee refers to a membership fee, renewal fee, Complaint Fee or additional fee); and
if the Complaint Fee/s for which the Voucher is intended to be used have been paid by the due date.

When did COSL start?

The Credit Ombudsman Service began operating on 1st August 2000.

The Credit Ombudsman Service was initially established by the Mortgage & Finance Association of Australia (MFAA, formerly MIAA) under the supervision of the Mortgage Industry Review Committee. COSL have been independent of the MFAA since 1st July 2003.

When does the "Complaint Voucher" expire?

The Voucher will expire immediately and without notice on:

the refund of the relevant Complaint Fees; or
the non-payment of a membership fee, renewal fee, Complaint Fee or additional fee by the due date; or
the Member’s membership not being renewed by the due date; or
the date of the Member’s notice of its intention to resign; or
the date of cancellation of the Member’s membership or the date on which the Member is expelled.

Where do I send my membership application form?

Completed forms should be sent to:

Att: Membership
Credit Ombudsman Service Limited
PO Box A252
Sydney South NSW 1235
E members@cosl.com.au
F 02 9273 8445

Who can join COSL?

Any of the following may be a COSL Member:

Credit industry participants
- Australian Credit Licensee (ACL)
- Credit Representatives
- Mortgage or finance brokers
- Originator,
- Aggregator,
- Mortgage Manager,
- Lender,
- Securitisation Manager,
- Trust Manager,
- Master Servicer or
- Programme Manager of a Securitisation Programme,
- Securitisation trustee,
- Lenders Mortgage Insurer, as
- Intermediary between borrowers or intending borrowers and
- Credit Providers

Provider of a financial service
- Loan facility
- Debt collection
- Financial service
- ADI’s
- Investment
- Insurance

Who is covered under my COSL Membership?

Your COSL Membership will cover all working directors and employees of the Member. If you are an Australian Credit License (ACL) holder, a Credit Representative with a separate COSL Membership, will also be covered. Credit Representatives will need a written authority from the ACL holder.

Financial Planners and Advisers who are Authorised Representatives of an Australian Financial Services (AFS) licence holder are covered under the licensee’s Membership.

Who is the Credit Ombudsman Service?

The Credit Ombudsman Service Limited (COSL) is a not for profit company.

The Members of COSL are individuals, firms and corporations that operate in the credit and finance industry and who agree to be bound by the Credit Ombudsman Service Rules and any other recognised Code of Practice.

COSL has a Board of Directors which comprises:

an independent Chairman
an equal number of consumer and industry representatives.

Who pays for other costs incurred when dealing with a complaint?

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 complainant attending the hearing, including travel and accommodation.

Who pays the costs of dealing with a complaint?

Members are charged fee’s for complaints received about them. There are different fees applicable depending on the stage at which a complaint is resolved, and how many complaints have been recorded against your Membership.

Who should make the application to become a member?

An application for membership may be made by the individual trading, a company or by the partners in a partnership. When making your application, a person with the appropriate authority must complete and agree to being a COSL Member.

Why should I join COSL?

Joining COSL is a key tool for managing risk and is essential for a successful business. By becoming a COSL Member you are demonstrating your commitment and high standards of service and performance within your day to day operations.

Your customers will have access to independent, experienced, and professional staff to assist them in resolving any complaint they may have about you.

Being a Member of COSL can also save you money. By resolving the complaint through COSL, rather than dragging the complaint through the court system, the cost can be significantly less, not to mention less stressful and time consuming.

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