Systemic issue presenting misrepresentation corrected by member

Mrs G needed a loan of $500 quickly and applied on line to a scheme member (SM) who advertised on their website, loan approvals within 48 hours.

SM acknowledged receipt of the application and confirmed that an approval would be made within 48 hours. This deadline passed and eventually SM phoned Mrs G to advise that her application was only then being processed and that nothing could be done for another two days. The application was eventually declined.

Annoyed, Mrs G complained to FDR, citing misleading advertising that clearly suggested approval within 48 hours. Mrs G alleged that she suffered a lost opportunity due to the delay.

FDR referred Mrs G back to the SM to first make a formal complaint through their internal compaints process. FDR advised SM of the complaint and noted that a systemic issue of misleading advertising was presenting.

FDR has a responsibility to monitor and report where necessary, systemic issues. Our first response is to give scheme members the opportunity to resolve the issue, to avoid escalation to the regulator.

Upon reviewing the complaint, SM agreed that they had not lived up to the advertising and expectation of the customer. They explained that generally, applications are processed within 48 hours - but in some situations, final approval can take longer.

To compensate for the inconvenience, SM offered Mrs G gift vouchers to the value of $500. In order to address the systemic issue, SM changed the wording on their website and in their documentation so that people would not be misled in future about certainty of approvals within a specified time period.

Mrs G was very happy with the outcome and the way that FDR and the scheme member had acted so quickly. FDR was happy that SM had resolved what could have become a systemic issue and that all parties benefitted from the experience