Disputes we can’t consider
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The Terms of Reference set out the Ombudsman’s jurisdiction to consider disputes.
There are certain categories of dispute that the Ombudsman is unable to consider. These include disputes about:
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- Members’ policy decisions – such as levels of interest rate or fees; and
- Commercial decisions – such as decisions not to provide finance, where there is no pre-existing obligation to lend.
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Telephone enquiries
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This year, 11.2 per cent of telephone enquiries answered were considered to be outside Terms of Reference (OTR), a slight increase from 9.9 per cent last year and 9.3 per cent the year before.
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Closed written cases
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The percentage of closed written cases that were classified as OTR increased slightly from 18.7 per cent last year to 19.7 per cent this year.
The table below shows the main OTR categories for disputes received during the year from both individuals and small businesses.
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OTR categories
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Disputes from individuals
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The profile of written disputes received from individual consumers that were classified as OTR was similar to the previous year. The top four OTR categories were the same as last year: Non-Member Financial Institution (25.8 per cent), Member Policy (15.8 per cent), Other Jurisdiction More Appropriate (21.4 per cent) and No Financial Service (13.2 per cent).
Consumers who write to BFSO about non-member financial institutions are directed to the customer relations department of the financial institution, the appropriate ASIC approved external dispute resolution scheme, or other services that may be able to assist.
In relation to telephone enquiries, the largest category was Non-Member Financial Institution at 22.9 per cent.
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Disputes from small businesses
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The main reason for small business telephone enquiries and written disputes to be categorised as OTR this year was that no financial service had been provided to the disputant with 34.5 per cent of telephone enquiries and 31.3 per cent of written cases categorised as OTR for this reason. These are instances where a disputant may be affected by dealings with a financial service provider and may even have a claim for loss, but because they did not receive a direct financial service from the member, BFSO is unable to assist.
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View the Main OTR reasons graph
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