I was reading FOS Circular Issue 12 - Summer 2012 - Disputes about low doc loans.    It got me thinking ....  can we really "trust" FOS or COSL staff to have the necessary expertise to deal with such SERIOUS matters raised in our COMPLAINTS, which we have lodged against their own members?

"What happens when the dispute comes to FOS?"

This type of dispute is managed by staff with expertise in credit-related matters, who will consider whether it was appropriate for the lending institution – the Financial Services Provider (FSP) – to have lent the money. If we conclude that it was inappropriate, we will consider what loss the applicant has incurred as a result of being lent the money. Our aim will be to put the applicant in the position they would otherwise have been in, had the credit not been granted. To do this, we will consider the purpose of the loan, how the loan funds were used, and any additional costs that were incurred. We will take into account any benefit the applicant obtained while owning the property; for example, not having to pay rent (or, in the case of an investment property, any rent received from leasing the property), and any claimed tax deduction. We will also take into account the applicant’s actions (or those of the applicant’s agents) and we may apportion liability between the parties."

http://www.fos.org.au/centric/the_circular_12_home/fos_news/disputes_about_low_doc_loans.jsp