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.
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.