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Glossary

Term

Explanation

ACR

Authorised credit representative – a business that is authorised to engage in specified credit activities on behalf of a business with an Australian financial services licence or a credit licence from ASIC

ACL

Australian Credit Licence – required licence for a business to engage in consumer credit activities

ADR

Alternative dispute resolution – ways of resolving disputes that do not involve going to court, such as conciliation and negotiation

APRA

Australian Prudential Regulation Authority

ASIC

The Australian Securities and Investments Commission

Authorised representative

A business that is authorised to engage in specified activities on behalf of a business with an Australian financial services licence or a licence from ASIC

borrower

A consumer who receives an amount of money from a lender and is obligated to repay it

Closed dispute

a dispute is closed once our handling of it is complete – this can be achieved through an agreement between the parties involved, through a decision by FOS, or because the dispute is discontinued or outside our Terms of Reference

Code

An industry code of practice

consumer

An individual or small business owner who uses the services of a financial services provider

credit contract

A credit facility provided to an individual or small business which may include a consumer credit contract

Credit facilities table

A summary of all of an applicant’s credit facilities provided by their financial services provider

Document exchange portal

A system for transferring documents between the applicant, FOS and the FSP securely online

EDR

external dispute resolution – dispute resolution managed by an independent third party (the Financial Ombudsman Service is an EDR service)

eSOFP / SOFP

Electronic Statement of Financial Position / Statement of Financial Position

Fast Track process

An accelerated dispute resolution process for straightforward and low-value disputes.

Financial difficulty

A consumer (individual or small business owner) may experience financial difficulty if they are unexpectedly unable to meet the repayment obligations on a credit contract

FOS

The Financial Ombudsman Service

FOSSIC

A software system FOS uses to track and manage information relevant to disputes

FSP

Financial services provider

FSRA

Financial Services Reform Act

GFC

Global financial crisis

IDR

Internal dispute resolution – every member should have IDR processes in place to handle disputes they receive about their business

member

A financial services provider that is a member of the Financial Ombudsman Service

merchant

A business accepting payment for the supply of goods or services to consumers

mortgage

An encumbrance on land or property owned by a borrower to secure a loan from an FSP

NCC

National Credit Code (part of the National Consumer Credit Protection Act 2009)

NCCP

The National Consumer Credit Protection Act 2009

OECD

Organisation for Economic Co-operation and Development

Ombudsman

Someone who investigates disputes between aggrieved parties (e.g. consumers and small businesses) and organisations (e.g. financial services providers) and mediates a fair settlement or makes a final decision on the matter

outcome

The way in which a dispute has been resolved or finalised

outcome type

The result or consequences of the resolution or finalisation of a dispute

product

A specific type of product within a product category (e.g. shares are a product within the securities product category)

product category

A group of products within a particular product line (e.g. securities are a product category within the investments product line)

product line

A broad line of products (e.g. investments)

registered dispute

A dispute that has entered the Registration stage of our dispute resolution process (compare to accepted dispute)

RG 139

ASIC Regulatory Guideline 139 – this document sets out the requirements of how an organisation like the Financial Ombudsman Service can become an ASIC-approved EDR scheme and how they have to operate and report to maintain that approval

sales/service channel

The channel a consumer used to purchase or get advice about the product in dispute

Secure Services

The password-protected online member portal FOS provides for members

SOFP / eSOFP

Statement of Financial Position / Electronic Statement of Financial Position

Statement of Claim

A Statement of Claim is an official document completed by someone who believes they’re owed money

TOR

Terms of Reference – the document setting out the broad rules and processes that the Financial Ombudsman Service follows

UCCC

Uniform Consumer Credit Code (replaced by The National Credit Code)