Disputes received at the Registration and Referral stage
Registration and Referral is the first stage in our dispute resolution process. When we register a dispute, we record the basic details and refer them on to the financial services provider (FSP).
We have changed our dispute resolution process since 1 July 2015. Disputes can no longer bypass registration and enter our case management stages directly. We refer all disputes at registration and referral stage back to the FSPs to give them a final opportunity to resolve the dispute directly with their customers before the FOS investigation begins. For more information about our process, click here.
We received 7,629 disputes. Compared with last quarter, this is a 9% decrease; compared with same quarter last year, this is a 2% decrease. The decrease is in part due to the seasonal decrease typically experienced in the December quarter.
Total disputes received by product line
The majority of disputes received this quarter continue to be credit disputes (43%), followed by general insurance disputes (29%).
Note: The total number of disputes received in this table exceeds the total reported in the chart above. The total in that chart is based on counting each case, even if it is about multiple products and issues, as one dispute.
If a dispute is not resolved during the registration and referral stage, it will progress to our case management stage. If there are issues with whether we have jurisdiction to deal with the dispute, we will review these at the beginning of the case management stage. Otherwise, the dispute will be allocated to case owner who will commence investigation and try to resolve it by either negotiation, conciliation or providing a view on the merits. For more information about our process, click here.
This quarter, we accepted 5,154 disputes. Compared with last quarter, this is an 8% increase. This is due to the decrease in the number of disputes resolved at the registration and referral stage (down 11%). This has resulted in more disputes progressing to our case management stage. We are currently working with FSPs to determine the reasons why less disputes are being resolved at the registration and referral stage.
When compared with the same quarter last year, the number of disputes accepted has decreased by 10%. This is largely due to the changes in our dispute process, particularly the changes to our registration process, as noted above.
Credit and insurance disputes make up the largest proportion of all disputes accepted. Credit disputes make up 45% of disputes accepted this quarter and insurance disputes make up 31%.
Note: The total number of disputes accepted in this table exceeds the total for this quarter in the chart above. The total in that chart is based on counting each case, even if it is about multiple products and issues, as one dispute.
We closed 7,844 disputes this quarter. This is an 8% decrease compared with both last quarter and the same quarter last year. The decrease compared with last quarter is in part due to:
- five fewer business days in the quarter
- the decrease in the number of disputes closed at registration and referral stage (down 11%).
We closed more credit and general insurance disputes in comparison with other product lines. This is consistent with the higher number of credit and general insurance disputes received.
Total disputes closed (by outcome)
The table below shows the outcomes of the disputes we closed in October - December 2015. Of the closed disputes, 62% were resolved through an agreement between the financial services provider and the consumer. Compared with last quarter, this is a 4% decrease. We closed 17% of disputes as being outside of FOS’s jurisdiction and over 8% of disputes were closed due to applicants deciding not to pursue their dispute(s).
Preliminary View is a new stage in our dispute process. During this stage, we express an initial view about the merits of the case to the applicant and FSP. The applicant and FSP can either accept our preliminary view, which will result in the dispute being closed; or not accept and the dispute will be progressed to decision. We closed over 6% of disputes at the Preliminary View stage, in favour of either Applicant or FSP. Compared with last quarter, this is a 3% increase.
- All the data in this report was correct at the time of extraction.
- All the percentages in this report have been rounded to the nearest whole number. Because of this rounding, the sum of the percentages in a given table might not add to 100%.