COSL receives 109 complaints against non-major lender

by 25 Nov 2013
Lenders have come under fire from the Credit Ombudsman Service, with one receiving more than 100 complaints over the past year.

According to COSL’s latest Annual Report on operations, the wholesale lender received 109 complaints on residential mortgages between July 2012 and June 2013.

Of these, 92 were closed, with 33 resolved by agreement, 2 closed by a decision in the consumer’s favour, 22 discontinued, 30 labelled as “not substantiated and 5 outside of COSL’s jurisdiction.

The figures are up slightly on last year's report, in which Advantedge received 97 complaints, only slightly trailing behind Pepper Australia, which received 99.

This year Pepper Australia had the second highest number of complaints at 82, all but one of which related to consumer mortgages. The other complaint related to a motor vehicle finance loan.

Pepper Finance Corporation also received 14 complaints against it, and Pepper Homeloans Ptyreceived a further 6, bringing the total number of complaints under the trading name Pepper Homeloans to 102.

Bluestone Equity Release and Bluestone Mortgages had 42 complaints between them – 23 for reverse mortgages and 19 for consumer mortgages.

Liberty was also hit with 34 complaints, Resimac with 23 complaints and La Trobe with 22.

Complaints against broking groups were relatively low, with Money Choice Ltd receiving the highest number of complaints at 11 and Aussie and BLSSA (the Australian Credit Licence holder for PLAN, Choice and FAST) both coming in at second place with 8.

The report found 32% of the 3763 complaints received by COSL related in some way to financial hardship. Last year financial hardship accounted for 36% of all complaints. In the majority of these cases it was due to the lender refusing to agree to a payment variation on the grounds of financial hardship.

“This level of financial hardship complaints is similar to previous years and we do not anticipate a reduction in the foreseeable future,” said the report.

The underlying causes of the financial hardship complaints were unemployment or reduced income (57%), illness of the borrower or their family member (22%), business failure (7%), relationship breakdown (7%), cost of living, including other debt (4%), interest rate increases (2%) and natural disasters (1%).


  • by hardship 25/11/2013 9:52:27 AM

    57% of complaints to COSL were because people lost their jobs? Damn - where did I put that crystal ball.

  • by Old Joe 25/11/2013 10:00:56 AM

    Sometimes you have to complain to COSL to get things moving , some of the lenders can be slow to act as it takes up a lot of resources. Where I get excited is the amount of borrowers who borrowed for investment and moved into the property and then seeking Hardship... they didnt lie on the app form to get the loan did they...nah....its always the broker...never the branch staff...Good times yet.

  • by No Time Like The Future 25/11/2013 5:20:29 PM

    Imagine if we DID have a recession.

    The types of lenders complained against lead to a special type of borrower and I've seen it.

    Slow to accept, quick to blame, quick to complain.

    Anyone else agree?