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New COSL fee structure gives added incentive to resolve debt collection disputes before EDR

Thursday, June 19, 2014 - Posted by Philip Harvey

COSL reviewed its fee structure for the 2014 - 2015 period. COSL are implementing a different membership fee for members who receive the majority of their complaints. This new fee will be calculated by estimating the complaint fees payable by them for the current year and deducting this from COSL's variable costs in dealing with these complaints.

This will only applies to 6% of COSL's members who receive the majority of COSL's complaints. For the remaining 94% of members there is no change to their membership fee.  

This is placing a very large incentive to reduce the number of complaints handled by COSL to reduce the number of complaints received in the current year to the membership fee reduces in the following year.

We are not aware of the organisations that this increased fee will apply to, but from a debt collection perspective this new structure certainly places a new added impetus to effectively deal with complaints at an Internal Dispute Resolution level.

In addition to the membership fee increase, Stage B complaints have increased by 15%. If a Stage B complaint gets to a Determination, the cost to the member can be as high as $8,765 (which is all non-recoverable and must be borne by the member). A Stage A complaint that reaches Determination  can be as high as $3,795.

Other interesting points to come out of the fee review;

  • 98% of COSL's membership receive less than 4 complaints a year.  
  • Complaint volumes have increased by 63% since July 2012.
  • COSL's costs have rising by 39% since July 2012.

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