Unit 6: Customer Complaints

Question 1

What are four reasons a bank document its Internal Dispute Resolution (IDR) procedures?

Answer 1

1. Enable staff to understand/follow the IDR
2. Promote accountability/transparency
3. Facilitate ease of understanding for consumers
4. Facilitate self-certification process for AFS licensees and credit licence applicants

Question 2

What 3 things must a documented IDR (internal dispute resolution) procedure set out?

Answer 2

1. Procedures and policies for handling complaints (receiving, investigating, responding, referring, recording, etc.)
2. Types of remedies available
3. Internal structures and reporting requirements

Question 3

To aid customers, banks must provide a simple, easy guide to the complaint handling procedure. How can customers access this?

Answer 3

Usually within FSG or PDS, also must be available on request

Question 4

To aid customers, banks must provide a simple, easy guide to the complaint handling procedure. What 3 things must this procedure do?

Answer 4

1. Be effective and transparent
2. Allow complaints to be made by any reasonable means
3. Recognise complaints as requiring resolution

Question 5

What are general response time requirements for complaints?

Answer 5

• Acknowledge receiving complaint within 24 hours.
• Final IDR response within 30 days for “standard” complaints.
• Customers to be notified if it will take longer than standard time - depends on complaint type and if sufficient information has been provided.

Question 6

As part of IDR, a response to a complaint must be in writing. What must the response include?

Answer 6

• The final outcome (including actions taken by the bank to resolve the complaint).
• Where a complaint has been partially or fully rejected, must explain why.

Question 7

What can a customer do if they are unhappy with the response from the IDR, or the complaint has not been resolved?

Answer 7

They can take the complaint to an External Dispute Resolution (EDR) scheme.

Question 8

Are decisions made by EDR schemes binding on AFS licensees and their employees/representatives?

Answer 8

Yes

Question 9

Who is the only approved EDR scheme for Australian financial and credit authorities?

Answer 9

Australian Financial Complaints Authority (AFCA)

Question 10

Can AFCA provide financial or legal advice?

Answer 10

No