The Credit Ombudsman Service is an external dispute resolution scheme established by Credit Ombudsman Service Limited (COSL) and approved by the Australian Securities & Investments Commission (ASIC).

The Credit Ombudsman Service provides consumers and members with an alternative to legal proceedings for resolving their disputes.

The broad aim of the Credit Ombudsman Service is to provide independent and prompt resolution of disputes in accordance with:

• relevant legal requirements
• the Mortgage & Finance Association of Australia (MFAA, formerly MIAA) Code of Practice and other recognised Codes of Practice
• good practice in the credit industry
• fairness in all the circumstances.

Individuals who refer their complaint to the Credit Ombudsman Service can have their complaint determined by the Credit Ombudsman. The Ombudsman's decision is binding on a Member only if the consumer accepts the Ombudsman's decision.

The Ombudsman can only deal with disputes where the amount of the claim is $250,000 or less.

• Who is the Credit Ombudsman Service Limited (COSL)?
• What are the main objectives of COSL?
• How does the Credit Ombudsman Service work?
• How long has the Credit Ombudsman Service been running?

Credit Ombudsman Service Limited (COSL) is a not for profit company. To download COSL's Constitution click here.

The Members of COSL are individuals, firms and corporations that operate in the credit industry and who agree to be bound by the Credit Ombudsman Service Rules and any other recognised Code of Practice.

COSL has a Board of Directors which comprises:

• an independent Chairman
• an equal number of consumer and industry representatives.

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The main objectives of COSL are to:

• act as the primary disputes resolution body for the credit industry
• actively facilitate the resolution of disputes concerning all aspects of the provision of credit and associated services to consumers by Members.

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COSL has established a set of rules called the Credit Ombudsman Service Rules. To download a copy click here.

These Rules set out:

• who can make a complaint to the Credit Ombudsman Service
• what matters can be the subject of a complaint
• what matters are not covered by the Credit Ombudsman Service
• what procedures apply for making a complaint to the Credit Ombudsman Service and having that complaint resolved.

The Credit Ombudsman Service is appointed and supervised by the Board. However, the day to day functions of the Credit Ombudsman Service are carried out by the Credit Ombudsman. The Ombudsman is responsible for:

• managing the receipt and resolution of complaints
• carrying out a conciliation role between consumers and members.

If a complaint is not resolved by conciliation it is referred to the Credit Ombudsman for a binding determination or award. The Ombudsman's determination is binding only if the Consumer accepts it in full as final satisfaction of their complaint.

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The Credit Ombudsman Service began operating on 1st August 2000.

The Credit Ombudsman Service was initially established by the Mortgage & Finance Association of Australia (MFAA, formerly MIAA) under the supervision of the Mortgage Industry Review Committee. COSL have been independent of the MFAA since 1st July 2003.

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