The Credit and Investments Ombudsman (CIO), previously known as COSL, today announced that the monetary compensation limit (MCL) applying to each claim in relation to complaints received from 1 January 2015 will be $309,000.
CIO is approved by the Australian Securities and Investments Commission under Regulatory Guide 139. The Regulatory Guide provides that CIO must adjust the compensation cap every three years using the higher of the increase in the Consumer Price Index (CPI) or the increase in Male Total Average Weekly Earnings (MTAWE).
A complaint may contain more than one claim, with each claim being separately subject to the monetary compensation limit. In other words, separate claims by the same complainant will not be aggregated for the purpose of determining a maximum claim.
CIO’s current MCL is $280,000 per claim.
The key objective of CIO is to provide consumers with a free alternative to legal proceedings for resolving their disputes with its financial services provider (FSP) members, having regard to relevant legal principles, industry codes of practice, good industry practice and fairness in all circumstances.
If CIO finds that a consumer has suffered loss as a result of the conduct of its FSP members or their representatives, it can award compensation up to its MCL.
Editors please note:
The Credit and Investments Ombudsman (CIO) is an alternative dispute resolution scheme approved by the Australian Securities and Investments Commission to provide consumers with an alternative to legal proceedings for resolving disputes with financial services providers who are members of CIO. These include finance brokers, non-bank lenders, building societies, mutual banks, credit unions, financial planners, finance companies, debt purchasers, small amount short term lenders and mortgage managers.