Call For Better Complaints Handling
The Age
Thursday December 11, 2008
THE financial ombudsman has urged banks and other institutions to devote more resources towards handling customer grievances, especially during the economic downturn.
Releasing his annual report yesterday, chief ombudsman Colin Neave said a 22.8 per cent increase in complaints could be attributed to the global financial crisis. Since July 1, complaints rose 40 per cent across all divisions compared with the same time last year.As consumers continue to feel the effects of a slowing economy, Mr Neave expects complaints to increase. "That's why I think it is really important that financial service providers have in place the departments who deal with these disputes."The report comes as concerns have been raised over the big four banks tightening their grip on the nation's mortgage market, with the credit crisis forcing many smaller non-bank lenders to fold.Meanwhile, several competitive lenders including BankWest and St George have recently been acquired by the big four.A parliamentary committee recently raised doubts over whether major banks were actively competing with each other.While interest rates have fallen in response to recent Reserve Bank cuts, a key source of frustration among customers have been the heavy fees after attemping to switch loans from fixed rates to variable.The banking and finance division recorded 7911 new complaints. -- With ERIC JOHNSTON
© 2008 The AgeNews Archive
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