Unpaid ombudsman determinations worth more than $12 million
More than 30 financial services providers have failed to pay compensation ordered by the Financial Ombudsman Service since 2010.FOS is campaigning for the introduction of an industry compensation scheme of last resort, which would be used when financial institutions are unwilling or unable to pay compensation ordered by an external dispute resolution body.The Australian Bankers Association took up the issue last month when it announced a series of industry undertakings, saying it would evaluate the establishment of such a scheme.According to FOS, 32 financial institutions have failed to comply with 137 determinations made in favour of 194 consumers.The outstanding amounts are worth A$12.6 million. FOS estimates that the inflation-adjusted value of the outstanding amount is more than $16 million.FOS said a new financial services provider had been added to the non-compliance list in the last quarter.