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Financial hardship and credit reporting driving complaints

by Nick Bendel9 minute read
The Adviser

Borrowers are making significantly more credit complaints but are also having their concerns dealt with more quickly.

The Credit Ombudsman Service received 4,513 complaints for the 12 months to 30 June 2014, which marked a 20 per cent increase on the previous financial year.

Financial hardship was the cause of 29 per cent of complaints, while credit reporting was the subject of 23 per cent of complaints, according to the Credit Ombudsman's annual report.

The number of resolved complaints jumped 40 per cent to 4,598, while the median time for resolving a complaint fell from 104 days to 77 days, a drop of 26 per cent.


The report also revealed that 46 per cent of resolutions resulted in a positive outcome for the consumer.

Chief executive Raj Venga said the Credit Ombudsman would continue working to reduce the time it takes to resolve complaints.

"I am delighted to say that, as at 30 June 2014, no financial hardship complaint had been open for more than six months and no non-financial hardship complaint had been open for more than 18 months," he said.

"Our standards and quality of work have not been allowed to suffer by our having significantly reduced our timelines.

"Nor will they do so in the face of any further demand for our services that we may see in the coming year."

[Related: Complaints and disputes]

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