OFS can now handle disputes of up to RM250,000 threshold

KUALA LUMPUR: The Ombudsman for Financial Services (OFS) can handle disputes of up to RM250,000, a higher monetary threshold compared to its predecessor scheme.

OFS Chief Executive Officer Jeremy Lee said the new limit is for a dispute involving financial services or products developed, offered or marketed by conventional or Islamic financial service providers, or by the financial service providers for or on behalf of another person.

“The OFS service is provided free of charge for financial consumers and there is no need to engage the service of a lawyer or legal firm.

“We will try to resolve each case within three to six month depending on complete documentation,” he told a media briefing on the role of the OFS here yesterday.

The OFS, which commenced operations on Oct 1, 2016, was formerly known as the Financial Mediation Bureau (from Jan 20, 2005).

“Previously under the predecessor scheme, the limit for banking services or products was RM100,000, limit for life insurance and family takaful claims was RM100,000, while for motor and fire insurance/takaful claims it was RM200,000,” said Lee.

Lee highlighted the monetary limit on motor third party property damage insurance and takaful claims was also higher at RM10,000 under the OFS, compared to RM5,000 previously.

Meanwhile, the monetary threshold for disputes involving channels such as internet banking, mobile banking, automated teller machines and unauthorised use of cheques, remains at RM25,000. — Bernama