Fair dispute resolution schemes should be readily available to ensure people, whānau and communities working with Financial Mentors do not have hardship compounded or caused by financial providers’ misconduct. Based on financial mentors’ insights, FinCap recommends more work is done to increase accessibility to the Insurance and Financial Services Ombudsman scheme.
FinCap welcomes the opportunity to comment on the IFSO Scheme Independent Review consultation paper (Consultation Paper). Financial mentors regularly assist whānau who were provided with loans that were always going to be unaffordable. They occasionally see issues with lenders not providing helpful assistance where hardship arises or issues where insurers are not supporting whānau as expected. In all of these scenarios FinCap will recommend a financial mentor approach the relevant financial dispute resolution scheme. When making such recommendations, escalating issues with access or following up to get feedback from financial mentors about our recommendation, we hear of any friction in the process of getting community members access to justice.