the product or service obtained by the consumer; and
	the problem with the product or service, as reported by the consumer.

As in the previous four years, disputes about Consumer Finance (28.3 per cent) and Housing Finance (22.7 per cent) were the top two product categories in disputes this year. The third ranked product type in disputes was Payment Systems (18.2 per cent) whereas in previous years, it has been Deposit Accounts.

The main product complained about in the Consumer Finance category continues to be the credit card account, representing 81.2 per cent of cases in this category. The main problems identified with credit cards were unauthorised transactions and maladministration in providing credit.

In the Housing Finance category, the main product complained about continues to be the variable rate home loan, representing 69.5 per cent of cases in this category. The main problems identified with variable rate home loans were delays in loan approvals or delays in settlement of the loan and breach of contract.

The profile of product groups in investigations differs from the profile for all closed cases. Disputes involving Housing Finance and Business Facilities predominated in investigation cases, representing 31.6 per cent and 21.6 per cent respectively.

Of the investigations into Housing Finance disputes, the majority were about variable rate home loans and the main problems identified were delays in loan approval or settlement and maladministration in debt recovery. In disputes about fixed rate home loans the main problems related to the early repayment fees and insufficient, incorrect or misleading product advice.

This year, complaints about products provided to small businesses comprised 11.4 per cent of all closed cases, and 21.6 per cent of investigations. Disputes involving business produces are twice as likely to be unresolved at an early stage as disputes about products provided to individual consumers.

The merchant facility was the subject of most investigations of disputes lodged by small businesses. The most common problems identified were fraudulent transactions and merchant chargebacks. Business overdrafts were also the subject of several investigations. The main problems were the rejection of an application or withdrawal of the facility and unilateral action by the member in relation to the facility.

The table below shows a comparison of the product categories that were the subject of a BFSO investigation and the product categories in cases that were readily resolved by members.


Product Group Representation in Closed Cases