TIO Annual Report 2005/06

Resolving complaints - what is fair and reasonable?

The TIO uses alternative dispute resolution (ADR) techniques such as conciliation to resolve complaints between members and consumers. Essential to ADR is the co-operation of all parties to a dispute. Acting in good faith and treating each other with courtesy and respect, as well as having an open mind and willingness to consider each other’s point of view are vital for the resolution of complaints at the TIO. One of the TIO’s main roles is to introduce members and consumers to the role of ADR and walk them through the process of conciliation.

Where it is not possible to conciliate a complaint so that a fair and reasonable outcome is achieved, the TIO must ultimately make a decision to either dismiss a complaint or escalate and determine the matter. In making this decision the TIO has regard to:

• the law
• industry codes and good industry practice
• TIO position statements
• what is fair and reasonable given the individual circumstances of the complaint.

Determinations and directions

Where a complaint cannot be conciliated so that a fair and reasonable outcome is achieved the TIO has the power to make a “determination” or a “direction” that is binding on the member but not on the complainant. At Level 4 the TIO’s binding powers are limited to determinations or directions to the value of $10,000. In late 2005/06 the maximum value of Level 3 determinations or directions was increased from $400 to $1,200.

While determinations and directions are binding on members, complainants can elect to accept or decline them. However, after the TIO has made a determination its investigation is complete and the complaint is closed.

In addition to binding decisions, the TIO can make non-binding recommendations to members, provided that these do not exceed $50,000. Members should give consideration to the TIO’s recommendations and provide a response.

The TIO outlines in its annual report instances where members have not followed through with TIO recommendations.

However, in the 13-year history of the TIO, non-binding recommendations have been rare and none has been rejected.

In 2005/06, 50 complaints were raised to Level 4 and 39 Level 4s were completed. Of these, 32 were resolved by conciliation and seven were determined. Of these seven determinations, six related to land access objections while the remaining determination was about credit control.

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