One-stop-shop for financial complaints opens for business
1 November 2018
One-stop-shop for financial complaints opens for business
Wide Bay consumers and small business will be spared the expense and inconvenience associated with taking financial complaints to court, with the Liberal Nationals Government’s Australian Financial Complaints Authority (AFCA) open for business from Thursday 1 November 2018, Llew O’Brien, Federal Member for Wide Bay said today.
“This new one-stop shop will deliver a free, fast and binding service for all financial complaints, whether they relate to banks, credit providers, insurance companies or superannuation funds,” Mr O’Brien said.
“Consumers and small businesses in our Wide Bay community will benefit from increased access to redress as AFCA, with significantly higher monetary limits and compensation caps than were available through the Financial Ombudsman Service (FOS) and Credit and Investments Ombudsman (CIO).
“The kinds of disputes AFCA may hear include: whether financial advice was appropriate in the circumstances; questions about credit card fees; if an insurer is required to pay out under a policy; and disputes between small businesses and their credit providers.”
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OLD FRAMEWORK |
NEW FRAMEWORK |
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Three bodies: |
A one-stop-shop: |
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FOS/CIO hears consumer complaints where the value of the dispute is up to $500,000 |
Will hear consumer complaints where the value of the dispute is up to $1 million |
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FOS/CIO able to award consumers compensation of $323,500 |
Will be able to award consumers compensation of up to $500,000 |
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FOS hears small business disputes that relate to a credit facility of up to $2 million |
Will be able to hear small business disputes that relate to a credit facility of up to $5 million |
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FOS/CIO able to award small businesses compensation of up to $323,500 |
Will be able to award small businesses compensation of up to $1 million |
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FOS able to award small businesses including primary producers compensation of up to $323,500 |
Will be able to award small business primary producers (including farmers) compensation of up to $2 million |
The Liberal Nationals Government committed to providing $1.7 million to support AFCA’s establishment in the 2018-19 Budget.
“The establishment of AFCA is part of the Liberal Nationals Government’s plan for stronger economy and ensuring a fair go for all Australians,” said Mr O’Brien.
ENDS
