Financial limits for complaints are being raised across the four approved financial dispute resolution schemes, from 18 July 2024, meaning more consumers can have their disputes resolved without going to court.
Under law, every financial services company has to be a member of one of the four schemes; the Banking Ombudsman Scheme, the Insurance & Financial Services Ombudsman Scheme, Financial Services Complaints, and the Financial Dispute Resolution Service.
From 18 July 2024, the maximum financial compensation available across all the schemes went up to $500,000 +GST.
If you have a complaint over that threshold, court is your only option to resolve the dispute.
The maximum compensation for non-financial loss, such as stress and inconvenience, has increased to $10,000 +GST. What this money can be awarded for has been standardised across the four schemes.
Read more here.
