Determination - 25 February 2014

Key issues: Whether the financial services provider: provided the service it was contracted to provide the consumer; and is entitled to retain the service fees paid by the consumer

Summary of Determination

  1. I find that the FSP completely failed to provide the services it had contracted to provide to the consumer under a written agreement, and for which the consumer had paid the FSP service fees of $2,330.
  2. As this amounts to a total failure of consideration under the agreement, I find that the consumer is entitled to full restitution of the service fees she has paid to the FSP.
  3. I also find that fairness in all the circumstances requires the FSP to refund to the consumer all the service fees paid to it under the agreement, given that the FSP did not provide the consumer with any service of substance.
  4. To resolve this complaint, I order that the FSP pay the consumer the sum of $2,730.82, being:

(a) service fees of $2,330; and

(b) interest of $400.82.

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