The CCMC receives and investigates complaints regarding breaches of the Code in an effort to identify and improve compliance. This function allows the CCMC to address specific instances of poor performance while also collating information regarding broader issues that may be emerging.
The investigation of complaints is a similar process to that adopted by external dispute resolution (“EDR”) schemes such as the Financial Ombudsman Service; however the outcome or objective differs. The CCMC cannot make an order of compensation for complainants and is focused on the remediation of the breach to prevent further loss or concern for consumers in contrast to EDR schemes seeking to settle a dispute between a Bank and the customer.
As the CCMC’s objectives differ from that of an EDR scheme, the CCMC investigations are not limited by any financial thresholds regarding loss, either from individual or small business customers as the investigation is not about compensation – instead it focuses on the underlying issues that have caused the breach to occur. Where a person making a complaint is seeking a financial outcome we refer them to the Financial Ombudsman Service as the more appropriate forum.
In addition the CCMC can proactively undertake its own inquiries whether a complaint has been made or not.
Complaint determinations
After the CCMC has completed its investigation and assessed the complaint, the Bank and the complainant are provided with a proposed determination and given the opportunity to make submissions to the CCMC before the determination is made final. In some cases, where the CCMC makes a finding that the Code has been breached (not infrequently more than one breach is found per complaint), the CCMC may recommend in its determination that remedial action is taken by the Bank. The Bank’s response is then monitored by the CCMC.Number of Determinations 2008/09
New complaints
New Complaints – By Source
There were 20 new complaints received during the year including 10 complaints which were received online. This compared to 24 and 11 respectively in 2007/08.
New Complaints – By Complainant
Of the 20 complaints, 13 were from individuals. The remaining 7 were received from financial counsellors or consumer advocates acting on behalf of the complainant customer. The Committee is yet to receive a complaint from a small business, although complaints have been received from individuals in relation to personal and small business banking. While the promotion of the Code is a matter for the Australian Bankers Association, the Committee continues its efforts engage with small business in relation to the Code.
New Complaints - By Banks
The 20 new complaints received during the year were directed to 8 of the Code’s 13 subscriber banks.
Of these 20 complaints, 10 were directed to the largest 4 subscriber banks (by market share).
Additional information relating to complaints
Breaches Determined: the detail