Notice of transition - New FDRS Scheme Director

  • Fri February 26, 2016

Scheme Director Stuart Ayres is to leave Financial Dispute Resolution Service (FDRS) and FairWay Resolution Limited (FairWay) as of 26 February 2016 to take up an opportunity operating his own business consultancy practice.

Stuart has been with FDRS for the past 5.5 years and leaves it in great shape. His successor Jennifer Mahony will bring tremendous experience in dispute resolution, new ideas and energy for the benefit of all stakeholders.

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27 reasons to embrace good complaints management

  • Wed February 24, 2016

Over the last 40 years there has been a considerable amount of research conducted into customer complaints and their management. The work has been undertaken around the globe by different authorities. The facts reported below have been assembled from a variety of sources, and are the products of well-conducted research. Sources are fully acknowledged.

  1. The main driver of high levels of customer retention is a well-documented complaints management process (Ang and Buttle 2006).

  2. 79% of organisations claim to have a documented complaints management process (Ang and Buttle 2006).

  3. 74% of organisations having a documented complaints-management process believe it is effective (Ang and Buttle 2006).

  4. Up to two-thirds of dissatisfied customers do not complain (Richins, 1983; Clark 1997).

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The Ministry of Business, Innovation and Employment is reviewing New Zealand’s financial advice laws and seek the views of the public

  • Thu December 10, 2015

MBIE are now consulting on ways to simplify the regime, improve access to financial advice and raise confidence in the financial advice industry.

They have recently issued a consultation paper with options to change the regime as well as a shorter brochure with some key consumer questions about access to financial advice.

Before MBIE consider changes to the laws they want to hear your views. In the consumer brochure they ask questions on key points, such as: 

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Changing the way we survey customers

  • Tue September 01, 2015

Changing the way we survey customers” and use the following as the introduction – “FairWay has engaged the services of an independent research company to change the way we survey customers. As part of the change we will move to a continuous monitoring and dashboard reporting system that uses consistent measures across all of the services we provide.

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Newsletter August 2015

  • Mon August 31, 2015

The August edition of the Newsletter is now available. 

Click here to download a copy. 

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Annual General Meeting

  • Wed August 26, 2015

The scheme has scheduled its annual general meeting for 1 pm, 8 September 2015, at Level 6, 109 Featherston Street, Wellington. An invitation is extended to all scheme members.

The Chair of the Advisory Council and Scheme Director will briefly review the year to 30 June 2015, look at systemic issues and outline the issues ahead for the scheme and its members.

We will invite feedback on whether the scheme is fulfilling its purpose,…”…to promote the long term interests of consumers and financial service providers by providing a complaints resolution scheme…. …in accordance with the principles of accessibility, independence, fairness, effectiveness, efficiency, and accountability; review the rules of the scheme and other items that members wish to raise.

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A quick snapshot of complaint activity for the 12 months ended 30 June 2015

  • Wed August 26, 2015

Whilst total activity was down on the 2014 year, total registered enquiry and complaint cases increased over this reporting period.

Of the 2,919 registered enquiries, FDRS recorded 475 complaints. 370 of those were referred back to the member’s complaints process.

Of the balance, 84 complaints escalated to the FDRS formal disputes process and 59 of those were resolved, 36 by early resolution, including two conciliation settlements. 23 disputes were resolved at adjudication. Of those 16 complaints were upheld.

Since year end many of the complaints referred back to members have deadlocked and escalated to the scheme’s formal disputes process. 

One of the conciliated settlements concerned a party alleging his financial planner failed to follow instructions about swithcing a KiwiSaver provider.The other settlement was over amount of an insurance settlement.

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Book review: " Debt. The first 5,000 years" by David Graeber

  • Wed August 26, 2015

Here is a book that challenges conventional thinking about money, barter and debt. Economists say money was invented to replace onerous and complicated barter systems and to relieve ancient people from having to haul their goods to market. The problem is that there is not a shred of evidence to support this version of history.

Graeber, an anthropologist, argues that since the beginning of the first agrarian empires, humans have used elaborate credit systems to buy and sell goods — long before the invention of coins or cash. Over time, virtual credit money was replaced by gold and silver coins, and the system began to decline. Interest rates spiked, the indebted became slaves. The system perpetuated with violent consequences with only rare intervention of kings and churches to prevent the system spiralling out of control. Debt has defined human history, including the recent GFC, and will continue to do so.

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Handling unreasonable complaint conduct

  • Wed August 26, 2015

Unreasonable conduct by complainants appears to be increasing, both in propensity and seriousness.

It’s not just being difficult, frustrated or upset or expressing views that are uncomfortable. Chronic complainants are people who feel passionately about their cause, are uncompromising, and cause undue disruption. At FairWay we have become attuned to handling unreasonable conduct over the years, particularly with the high volume of ACC claim reviews and care of children disputes in the Family Dispute Resolution service where the stakes and emotions are often high. Interestingly though, we find unreasonable behaviour from quite a number of complainants in the Telecommunications Dispute Resolution service, where issues tend to be of lower value and switching of providers is relatively easy. 

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Great satisfaction survey

  • Wed August 26, 2015

Each year we undertake surveys of both complainants and members to get feedback as to how well we are doing. Dispute resolution schemes are measured by their effectiveness, efficiency, accountability, independence, fairness and accountability.

There are no better judges than the users of the scheme - our scheme members and complainants- to tell us what they think of our processes and service. With money involved the environment is ripe for dissatisfaction, so we need to ensure that those principals are maintained .But we want more than just that. As clichéd as it may seem, we endeavour to exceed our client’s expectations with our service and try to add some value to their lives and businesses whilst we are at it.

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