What’s the process?

CSLR’s role will be to pay compensation that has been awarded to an eligible consumer where an AFCA determination remains unpaid.  As set in the legislation, compensation is capped at $150,000. A number of steps need to have occurred before application can be made to the CSLR:

Step 1 Where possible, the consumer has first lodged a complaint with the financial firm and gone through its internal dispute resolution process.
Step 2 The consumer has lodged a complaint with AFCA against the financial firm.
Step 3 The consumer has received a determination from AFCA awarding compensation.
Step 4 The consumer has advised AFCA that the compensation ordered in the determination has not been paid.
Step 5 AFCA has taken appropriate steps to require payment but the amount still has not been paid.

The consumer can then make an application for compensation to the CSLR:

Step 6 The CSLR will assess whether the unpaid determination is eligible for compensation under the CSLR’s legislation.
Step 7 If there is no other avenue for compensation, the CSLR will make a payment to the consumer.

It is important to note that the CSLR cannot review the merits or facts of a dispute between the consumer and financial firm. Only AFCA can consider complaints that fall within its jurisdiction and issue a final decision awarding compensation to a consumer.

Unpaid AFCA determinations

AFCA is Australia’s national financial ombudsman service. It considers complaints from consumers, including small businesses, in relation to banking and finance, insurance, investments and advice, and superannuation.

AFCA generally tries to help the consumer and financial firm resolve a complaint through informal methods, such as conciliation. However, it can also make decisions, known as determinations, after an investigation of the facts.

AFCA provides information on its role in relation to the CSLR on its Current Matter page.