Brokers make up 9% of COSL complaints

by AB09 Jan 2014
More than 300 complaints were made to the Credit Ombudsman in 2013 regarding the conduct of finance brokers, but the vast majority of brokers still seem to be doing right by their clients.

According to the latest COSL Annual Report on Operations, 9% of the total 3763 complaints related to broker conduct - a total of 337 complaints.

"Most complaints about brokers are in relation to the service provided by the broker," said the report. "The top two complaints being about the appropriateness of the loan which the broker arranged (17%) and the broker’s care, skill and diligence during the application process (17%)."

In the next tier of complain categories were 'Complaint about a loan fee' and 'Misrepresenation/misleading conduct', which both received 9% of complaints.

The MFAA predicts brokers likely make up around 60% of COSL's membership.

"As the vast majority of MFAA's broker members are COSL members we can conclude that only around 3% of MFAA broker members were involved in a COSL complaint in 2013," said the industry body.


  • by Percentages 9/01/2014 10:36:38 AM

    so we write 42% of mortgages in the country as an industry, but only receive 9% of the complaints. Wow, some Bank staff must be cutting some corners.

  • by Gary 9/01/2014 11:59:24 AM

    I am not surprised. I hope the banks keep up the "good work", if it wasn't for the lack of skills and competence shown by many of their bank staff, there wouldn't be a broker industry

  • by Steve McClure 9/01/2014 12:45:11 PM

    Excellent result considering COSL is completely free, not even legal costs for borrowers to step up and take their best shot at a broker. Lenders performing 10 times worse makes a mockery of those that tell us the error rate of brokers is higher than bank staff. There's no doubt that the most efficient, professional and productive channel in the market, is brokers.