FINANCIAL OMBUDSMAN SERVICE – NON CODE LOANS - BE VERY AWARE ...
I recommend the following reading to all industry professionals.
Responsible Lending Conduct Obligations & Maladministration
www.fos.org.au/circular_default_v5.jsp?xcid=3085Share
FOS has jurisdiction in respect of both individual and small business (-LR insert - ... non-code ...) lending.
It should be noted that FOS’s jurisdiction to consider claims of maladministration (-LR insert - ... and by inference issues of responsible lending”) encompasses all contracts between clients and their FSPs that may be the subject of a dispute at FOS. We can consider disputes from individuals and small businesses, so long as they fall within the monetary limits specified in FOS’s TOR. Essentially, we can consider a dispute where the value of the client’s claim is less than $500,000 and we are able to award compensation to a maximum of $280,000.
Therefore, subject to our monetary limit of $500,000 and our compensation cap of $280,000, although a credit contract may not be regulated under the Uniform Consumer Credit Code (UCCC) or the National Credit Code (NCC), we will consider a client’s claim that the FSP’s decision to grant the loan or credit facility amounted to maladministration in lending.
