The Credit Ombudsman Service (COSL) has released its 2011-2012 Annual Report on Operations.

Key data includes:

• More than 2,700 complaints were received in the year ending 30 June 2012, up 38% (on top of the 72% increase from the previous year before that)
• 56% of complaints were closed within 3 months of receipt and 76% were closed within 6 months of receipt
• Financial hardship complaints continue to feature as the single largest source of complaints, being 36% of all complaints received
• Of the complaints received, 83.5% were in relation to consumer products, 5.9% were for business purposes and 10.6% were for investment purposes.

Due to the increase in the number of financial hardship complaints, as well as the time that needs to be expended to assist borrowers in these circumstances (which are usually emotive and financially critical in nature), the median number of days it took COSL to close a financial hardship complaint was 74 days (previously 45 days).

In about 65% (previously 72%) of the cases COSL received, the borrower had been served with a default notice or the lender had commenced legal proceedings, repossessed the security (with or without obtaining judgment) or issued a notice to vacate.

COSL is taking a number of steps to limit delays and reduce its timelines.

Apart from financial hardship the main areas of complaint included:

• Disputed debt or amount of debt,
• Incorrect listing of credit default,
• Failure to follow instructions,
• Excessive fees,
• Inappropriately applied fees,
• Fees not disclosed,
• Unjustness – failure to assess capacity to repay.

COSL had 16,979 Members as at 30 June 2012 in a variety of financial service sectors, of whom 4,383 joined in 2011/2012.