Consumers dispute the accuracy of their credit reports

Disputes about the accuracy of data in consumer credit reports played an increasing part in complaints to the Credit Ombudsman Service over the past year.

COSL received 4513 complaints during the year to June - an increase of 20 per cent over the previous year.

Debt collectors and debt buyers were the biggest cause of disputes, accounting for 44.8 per cent of all complaints. The most common complaint in this area was about the validity of listings in credit reports (23 per cent of all complaints related to credit reporting).

Among the debt collectors and buyers, COSL received 352 complaints about Credit Corp, 183 about Baycorp Collections, 149 about ACM Group, 55 about Pioneer Credit Acquisition Services, 26 about Great Western Asset management and 25 about Axess Debt Management.

In the case of debt collectors and buyers, the complaint may relate to action taken by the original financial service provider.

COSL chief executive Raj Venga said a large number of the complaints involving credit reports came from credit repair companies, which often claim to be able to have adverse credit listings removed. Consumers were represented by credit repair companies in 11 per cent of cases in 2013/14 - up from 9.6 per cent of cases in the previous year.

Almost one-third (29 per cent) of complaints were related to the way financial service providers dealt with customers in financial distress.

Among mortgage lenders and managers, COSL received 67 complaints about Advantedge Financial Services, 64 about Pepper Australia, 54 about Liberty Financial and 25 about La Tribe Financial Services.

In the motor vehicle finance category, BMW Australia Finance attracted 45 complaints, Nissan Financial Services attracted 39 and KWIK Finance attracted 19.

Another area that attracted a relatively high number of complaints was consumer retail finance. COSL received 36 complaints about Flexirent, 30 about Thorn Australia, and 15 about Walker Stores.

COSL improved its efficiency during the year. There was a 40 per cent increase in complaint closures, with 57 per cent of complaints resolved within three months and 76 per cent resolved within six months.

More than two-thirds (76.2 per cent) of complaints closed in 2013/14 were resolved by agreement between the parties. 46 per cent of complaints were resolved in favour of the consumer.

COSL had 18,307 members at June 30 - a 7.1 per cent increase from the previous year.