ACM Group Tops Financial Ombudsman List of Firms with 113 Disputes

ACM Group topped the list of credit card companies that Australia's financial ombudsman received formal disputes in 2010. ACG had 113 disputes per 100,000 accounts which is way above the median of 18.7 disputes.

It was followed by Credit Corp Services with 110 disputes. Other credit card companies with large number of disputes were Lion Finance, Macquarie Bank, HSBC Bank and Citigroup.

At the extreme end was Bank SA, a division of Westpac Bank, with registered just 3.1 disputes.

Most of the finance companies resolved the disputes by agreement, with Macquarie Bank enjoying the highest rate of agreement at 95 per cent.

According to the report of the Financial Ombudsman Service released Tuesday, for consumer loans, Credit Corp Services, Bank of Queensland, Lombard Finance, National Australia Bank and Bendigo and Adelaide Bank had disputes higher than the industry median of 44.25 disputes for every 100,000 accounts. The credit card topnotcher, ACM Group, and George Motor Finance were the best performers with scores of less than 15 disputes.

For motor vehicle insurance, Youi and Holland Insurance Company had the most disputes at thrice or higher the median of 11.9 per 100,000 policies.

In response to the release of the report, the Australian Bankers' Association (ABA) said it was pleased with the banks' low share of disputes which are indicators that the financial institutions did a good job in helping clients through difficult periods of natural disasters and rising interest rates.

Most of the disputes that involved ABA members were about credit products and services, including home loans, credit cards and personal loans.

"This year's survey results have been affected by the natural disasters - the Queensland floods, the Victorian floods and Cyclone Yasi. It was a very difficult period for customers affected by these extreme weather events. Some lost their homes and almost everything they owned, while others sustained damage which needed to be repaired," ABA Chief Executive Steven Munchenberg said in a statement.

He pointed out that the banks assisted over 25,000 families affected by the natural calamities. Mr Munchenberg added that ABA launched a new Web site "Doing it Tough" at www.doingittough.info to help bank clients find information and advice if they are going through financial difficulties.