Dispute schemes offering carrots to advisers

In its recent newsletter the ISO claimed it was aware that other dispute resolution schemes were approaching its members.

“We are aware that some other dispute resolution schemes are marketing direct to our Participants and you might be misinformed about our service,” it says in its recent newsletter.

Coincidentally this comment was made about the same time the Financial Services Complaints (FSCL) scheme had offered a discount to its members.

It said the scheme will reduce its annual fees by 10% for the next financial year. Chief executive Susan Taylor said it was a result of a cash surplus due to membership growth.

"As a not-for-profit it is important that the fees we charge reflect our costs and that we are not making our participants pay more than they need to for our services."

It said the offer was not about poaching members. Rather the offer was being made as the scheme had been running well.

Now the renewal process is underway ISO says it is was looking “to provide its members with some encouragement and additional assistance with complaints handling.”

“In acknowledgement of all the work our participants have put into their internal complaint processes over the last few years, we have decided to waive the first complaint fee applicable for the next financial year,” ISO’s Karen Stevens says.

“We are aware that many of our Participants have few or no complaints made about them but that they are still required to have a complaints process in place.

“Sometimes, complaints are unavoidable but our experience has been that most complaints are being resolved at the first instance without the need for our involvement. This early resolution of complaints clearly benefits consumers.”

Comments from our readers

On 24 July 2013 at 8:23 am Bazza said:

Surely the reserve scheme (FDR)must be looking for members to replace the default scheme money? I wouldn't recommend moving schemes for money, not all disputes schemes are created equal when it comes to resolving complaints.

On 24 July 2013 at 10:10 am Annoyed Member said:

I still think $300 pa approx it far too steep given the tiny number of cases they actually deal with!

Why not get creative with your offering and base your fees on the nature of your business? Given that more than 50% of FSCL's cases related to travel insurance, how about a discount to those of us not selling travel insurance? (I'm sure this rationale could be rolled out further!)

On 25 July 2013 at 12:12 pm Mike King said:

@ISO - maybe I misunderstood, but the recent offer amounts to little more than an insult - Basically, If you are either incompetent enough, or just unfortunate enough, to have a client lodge a dispute against you, then you get the $1,000 fee waved.

If,however, you DON'T need to call on the dubious services of the ISO, you get nil recognition and get to keep coughing up year after year.

On 25 July 2013 at 3:05 pm Annoyed Member said:

Well said Mike King! I can't believe good operators are happy for these shonky providers to keep taking their pound of flesh each year, and no one asks any questions?!

On 26 July 2013 at 9:17 am Lindsay said:

The real problem is that there aren't enough complaints at $1000 each.
From a recent phone call to me, I get the impression that they all would like huge files of complaints.
Well it is great that there aren't many. Proves a point really

Dispute schemes offering carrots to advisers

After recently claiming other schemes were trying to pinch its members the Insurance and Savings Ombudsman Scheme is offering its members a carrot now it is renewal time.

Wednesday, July 24th 2013, 11:02AM 5 Comments

Comments from our readers

www.GoodReturns.co.nz