Senator Nick Sherry, Minister for Superannuation and Corporate Law, has called on financial product and service providers to ensure that their complaints and dispute handling departments are fully staffed and equipped to deal with rising numbers of disputes.
"Figures from the Financial Ombudsman Service show that disputes have risen substantially in the first five months of this financial year compared to the same period the previous year. This shows the impact that the global financial crisis is having on financial services consumers across Australia," said Minister Sherry.
"I urge all financial service providers, from major banks and insurance companies to financial planning and investment management firms, to look at their complaints handling system and assess whether it is adequately staffed to respond efficiently to distressed consumers with a complaint."
"Financial services providers should have sound systems in place for dealing with complaints so that consumers with a problem can get that problem dealt with promptly and preferably in-house," Minister Sherry said.
In particular, the Financial Ombudsman Service has experienced a significant rise in the number of disputes forwarded to its Investments, Life Insurance and Superannuation Division.
"I know that many businesses in the financial services sector are doing it tough in this economic climate, but urge providers to ensure that they respond and provide redress to consumers with a dispute as quickly as they can," Minister Sherry said.