Complain And You Shall Be Heard

Sun Herald

Sunday July 23, 2006

NICOLE PEDERSEN- McKINNON

HAVE you ever been overcharged on your bank account? Unfairly rejected for an insurance claim? Lost money due to inappropriate financial advice?

Just like David triumphed over Goliath, it is possible to win the battle against a financial company that has wronged you.

"Under the law, you have the right to complain if you are not happy about any aspect of a financial product or service including your bank, building society or credit union account, your insurance policies, superannuation, financial investments and any financial advice you receive." So says the Australian Securities and Investments Commission, which has just released a new edition of its brochure: You Can Complain - A Guide To Solving Problems With Financial Products And Services.

Getting a result is a three-step process.

In the first instance, you should complain directly to the person you dealt with at the financial institution, or to the complaints department. You can do this by phone, email or letter.

Think carefully about the manner of your approach - you are most likely to get the outcome you want by first giving your product details, and then calmly and rationally outlining your grievance in relation to that product.

The next step, if that doesn't work, is to make a formal complaint. Ask for a copy of the firm's complaints procedure, which may require you to write an email or letter. Either send this to the area that deals with complaints or to the most senior person in the organisation. Don't be scared to go to the top.

Should the response either take too long or be unsatisfactory, you may then be able to bring your complaint before the company's independent complaints scheme.

Obtain the name and contact details of the relevant complaints scheme from the firm or, if it's not forthcoming, directly from ASIC. Here, you will probably be required to fill out a form.

The scheme acts independently of both you and the company and, if it can't help you reach an agreed settlement, will make a final decision about your complaint.

Except that it's not really final. If this free process gets you nowhere, you can still take your claim to the courts.

However, if you go to the courts first, not only will you spend a lot of money, but you will then be unable to use the complaints scheme.

Incidentally, the firm has no recourse beyond the scheme and must abide by its decision.

So you really have nothing to lose.

Naturally, throughout all of this you should keep notes of all conversations and meetings, copies of all correspondence and hold tight to your original documents, sending only copies. It is also worth thinking in advance about what you want to achieve by your complaint. An apology? An explanation? Redress? Compensation? You can only but try.

For more information and even templates for complaints letters, and free copies of ASIC's brochure see www.fido.gov.au or phone 1300 300 630.

As the regulator says, "it's your right to complain". You never know, your slingshot might just find its target.

If you would like to appear in Investor Overhaul, send an email with a brief explanation of your financial situation to investor@fairfax.com.au. You would need to be willing to have your financial details and photo published.

© 2006 Sun Herald

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