Friday, December 28, 2018 - Posted by Michael McCulloch
The Australian Securities & Investments Commission (ASIC), in conjunction with Nature Research, has recently compiled a report "The Consumer Journey Through the Internal Dispute Resolution Process of Financial Service Providers" which has looked at the consumer experience of the Internal Dispute Resolution (IDR) process.
The research found that:
- 17% of those surveyed considered making a complaint to a FSP in the last 12 months;
- only 8% went on to make an actual complaint;
- approximately 50% of those who did not make a complaint reported that "they did not think it would make a difference" or "it was not worth their time";
- 18% of complainants dropped or withdrew their complaint before it was concluded;
- only 45% of those that did proceed with a complaint received an unfavourable outcome with an explanation provided by the FSP; and
- 21% of those who complained and did not have their complaint resolved within the IDR guidelines set by ASIC knew they could escalate the complaint to External Dispute Resolution (EDR).
Common obstacles encountered by Australians aged over 18 who took part in the research that directly affected their satisfaction and / or confidence in the IDR process include:
Structural Obstacles: 1 in 7 complainants found it difficult to find the FSP's contact details to make a complaint
Transparency Obstacles: Almost 25% of complainants did not have the IDR process explained well at first and 27% of complainants were unsure of how long they would need to wait for a decision; and
Customer Service Obstacles: 28% of complainants reported feeling that they had not been listened to or heard and 22% felt that they had been passed around too many people.
Following the release of this research ASIC has given an undertaking to raise financial services IDR standards and transparency including onsite monitoring and reviewing the current standards and guidance which are set out in Regulatory Guide 165
with a public review to commence from February 2019.