Credit and Investments Ombudsman
The Financial Ombudsman Service (FOS) was a member-funded Australian ombudsman service that provided external dispute resolution for consumers who were unable to resolve complaints with member financial services organisations. The Credit and Investments Ombudsman (CIO) (until 2014 known as the Credit Ombudsman Service) is an Australian alternative dispute resolution or ombudsman that helps settle disputes between consumers and financial credit providers. The Credit and Investments Ombudsman is one of the largest External Dispute Resolution (EDR) schemes in Australia by number of members, totaling over 22,000 in 2016. History It was established in 2003 as a result of the Mortgage & Finance Association of Australia ('MFAA') self-regulation, originally called the Mortgage Industry Ombudsman Scheme (MIOS). It later expanded its remit to include non-bank lending and other credit services, changing its name to the Credit Ombudsman Service Limited (COSL) to reflect this broader jurisdiction. Since November 2014 the scheme has been known as Credit and Investments Ombudsman. On 1 November 2018, the Australian Financial Complaints Authority launched as the one ombudsman service for all financial complaints, replacing three predecessor schemes, the Financial Ombudsman Service, the Credit and Investments Ombudsman and the Superannuation Complaints Tribunal. Coverage The CIO covers the following institutions: Credit providers Credit representatives Fund managers Credit unions Building societies Leasing companies Small Amount-lenders Mortgage Brokers non-bank lenders mortgage managers mortgage originators aggregators wholesale funders securitisation trustees housing co-operatives mortgage insurers Fund Managers Planners & Advisors Collections Hire & Rental History The Credit and Investments Ombudsman was first established as the Mortgage Industry Ombudsman Service Limited (MIOS) on 18 June 2003 as an EDR (External Dispute Resolution, known in other regions as ADR) scheme, and commenced operations on 1 July 2003 . They adopted the name Credit Ombudsman Service Limited (COSL) on 17 February 2004 before becoming the Credit and Investments Ombudsman (CIO) on 19 November 2014. CIO is an approved EDR scheme under scheme approved by ASIC's Regulatory Guide RG 139 and its services are free for consumers. Funding is sourced from a combination of its membership fees and complaint fees paid by its participating Members. CIO can award compensation up to a maximum of $309,000 and other remedies, such as an apology, can be asked for. Complaints process CIO considers complaints or disputes about its participating Members' concerning their products and services, such as mortgages, credit products, financial planning, managed investment, insurance and deposit taking (savings). CIO resolves disputes in a non-adjudicative means through conciliation, although the actual Ombudsman can make a decision which is binding on the member (a Determination). Like all ASIC RG 139 approved schemes, Determinations made by the Ombudsman bind Members but not complainants. CIO's conciliation process is both inquisitorial and consensus-based and focuses on producing a mutually satisfactory outcome. Both Members and consumers are afforded an equal opportunity to put forward their cases. This is intended to ensure procedural fairness and promote effective dispute resolution. Coverage The Credit and Investments Ombudsman covers complaints for consumers if they have dealt with a participating Member of