Brokers formed only a small portion of the complaints directed to COSL last year by consumers, a new report has revealed.
The Credit Ombudsman Service has released its Annual Report on Operations, and brokers form only a small proportion of the total complaints received by the service. While 90% of complaints received by COSL related to consumer finance, only 6.9% were about finance brokers. By comparison, residential non-bank lenders and mortgage managers accounted for 17.1 complaints while debt purchasers and collectors were the most common source of complaints at 43.3%. ADIs accounted for only 2.2% of complaints.
Of the brokers who were the source of consumer complaints, 23.5% were accused of failing to act with due skill, care and diligence, while 14.7% were accused of inappropriate finance, including responsible lending. Only 5% were accused of outright fraud.
COSL saw its overall number of complaints rise by 20% from the previous year. Credit Ombudsman Raj Venga said the service handled the influx well.
"This year, we received 4,513 complaints, or a 20% increase from the previous year. Despite this, I’m pleased to say that we have closed 40% more complaints this year than the last, with 57% of complaints resolved within three months and 76% within six months," Venga said.
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