Case studies

The following case studies are based on actual complaints received by FDRS.

These examples provide a good crosssection of the types of complaints FDRS can help with. All identifying information has been removed.

Whether the scheme member (an authorised financial adviser) has misrepresented benefits from an endowment policy, and on that basis causing a loss to the Customer

The Customer was the owner of a whole of life policy insuring her husband, issued in 1986. A loan had been taken out against the policy to cover the premium arrears.

Whether the Scheme Member was correct in excluding a claim made under a Guarantee, in relation to a building dispute claim. Complaint upheld

The Customer entered into a contract with a builder for the construction of a new dwelling.

Forced liquidation leads to USD 30,000 loss trading fx online. Complaint dismissed but did the complainant understand the terms they accepted before trading? 

The Complainant alleged that they suffered a loss in excess of $30,000 USD whilst trading via the Scheme member’s online Forex Trading platform. 

Online fx trader ordered to reimburse complainant USD 12,000 that went missing with its transaction agent

The dispute relates to alleged losses the Complainant suffered when trading with the Scheme Member.

A case of wrongful advice, poor communication and mismanagement

A myraid of issues lead to an acrimonious dispute and a lenghty resolution process.

Early intervention resolves issue, but reveals more

A complaint is resolved quickly, but in the process a major - potentially illegal - issue is revealed

Insurance company agrees through conciliation to reinstate builders risk cover despite the insured breaching terms

Insurance company agrees to replace lost phone

Tourist delighted with FDR intervention even though issue outside jurisdiction

Systemic issue presenting misrepresentation corrected by member

Incorrect settlement figure

Online foreign exchange trading

An online trader complains that the forex broker had engaged in improper trading practices. The complaint was not upheld by the adjudicator, who did however raise a concern between the parties had been drafted heavily in favour of the broker, and requested FDRS to raise this as a systemic issue. FDRS has since reported it to Consumer Affairs, advised XYZ of its concern that the terms reflect an uneven position between the service provider and the client and suggested changes be made to address.

Father loses house guaranteeing son’s business loan

An all too common issue where parents feel emotionally bound to support their childrens’ risky ventures and don’t read the fine print.

Conciliation is a cost effective, hassle free way of resolving a dispute

Through the skillful work of a FDRS conciliator, a mortgage company comes to the party even though borrower misunderstood the fine print.