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Statistics report - January-March 2012

 

Total disputes received

We received 9,590 new disputes in the January-March 2012 quarter. This is up 16% on the previous quarter and up 29% on the January-March 2011 quarter. As the chart below shows, the number of disputes we have received has increased steadily over the past year, except for a slight dip in October-December 2011.

Total disputes received by quarter

Circular 10 chart - Total disputes received by quarter

Note: ‘disputes received’ includes disputes that enter our dispute resolution process at the Registration stage and disputes that entered the process at the Acceptance stage.

Total disputes received by product line

Almost half of the new disputes we received in January-March 2012 were credit disputes and another 29% were general insurance disputes. We started handling disputes about traditional trustee services this quarter, but we only received 9 disputes in this new product line.

Disputes received by product line (Jan-Mar 2012)

PRODUCT LINE

NUMBER

%

Credit

4,810

49%

General insurance

2,814

29%

Payment systems

631

6%

Deposit taking

587

6%

Investments

535

5%

Life insurance

299

3%

Products outside our Terms of Reference

167

2%

Traditional trustee services

9

<1%

Unclassified

11

<1%

Total

9,863

 

Note: The total number of disputes received 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. The total in this chart is based on counting cases about multiple products and issues as multiple disputes.

Registered disputes

Registration 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). The FSP then has an opportunity to resolve the dispute with its customer without our involvement. Click here for more information about our process.

We registered 4,885 disputes in January-March 2012. At the end of the quarter, half of these disputes were still open in Registration, 23% had been resolved by the FSP, and 24% had progressed to the Acceptance stage of our process.

Registered disputes and their outcomes/statuses

OUTCOME/STATUS

NUMBER

%

Resolved by the financial services provider

1,111

23%

Discontinued

18

<1%

Outside our jurisdiction

121

2%

Still open – in Registration

2,447

50%

Still open – progressed to Acceptance

1,188

24%

Total

4,885

 

Accepted disputes

Acceptance is the second stage in our dispute resolution process. It is the point at which we start playing an active role in trying to resolve a dispute. Click here for more information about our process.

We accepted 6,723 disputes in January-March 2012. This is up 18% on the previous quarter and up 39% on the January-March 2011 quarter.

Disputes accepted by quarter

Circular 10 chart - Disputes accepted by quarter

The breakdown of accepted disputes by product line is similar to the breakdown of all received disputes.

Accepted disputes by product line (Jan-Mar 2012)

PRODUCT LINE

NUMBER

%

Credit

3,460

49%

General insurance

2,012

29%

Investments

466

7%

Deposit taking

352

5%

Payment systems

384

5%

Life insurance

240

3%

Products outside our Terms of Reference

90

1%

Traditional trustee services

4

<1%

Total

7,008

 

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. The total in this chart is based on counting cases about multiple products and issues as multiple disputes.

Closed disputes

We closed 8,734 disputes in January-March 2012. This is up 5% on the previous quarter and up 20% on the January-March 2011 quarter.

Disputes closed by quarter

Circular 10 chart - Disputes closed by quarter

Outcomes of closed disputes

Three-quarters of the disputes closed in January-March 2012 were resolved through an agreement between the financial services provider (FSP) and the consumer. Only 8% of the closed disputes required a formal decision by FOS.

The proportion of closed disputes that were discontinued has been trending down over the last two years, from 9% in 2010-2011 to 6% in the January-March 2012 quarter.

A dispute is recorded as having been discontinued if the applicant (the consumer who lodges the dispute) either decides to discontinue their dispute or pursue it in another forum, or the applicant fails to respond to several requests from us for contact and information. We have a follow-up process in place for situations in which an applicant does not respond to communication from us.

Outcomes of closed disputes (Jan-Mar 2012)

OUTCOME

TOTAL

%

Resolved by agreement

   

Assessment

150

2%

Conciliation

161

2%

Negotiation

322

4%

Resolved by financial services provider (FSP)

5,912

68%

     

Resolved by FOS decision

   

Decision in favour of applicant

285

3%

Decision in favour of FSP

402

5%

Decision confirming FSP offer/action

59

1%

     

Discontinued

500

6%

Outside FOS Terms of Reference

943

11%

     
Total 8,734