The financial ombudsman scheme as am alternative dispute resolution mechanism for financial disputes: The Malaysian experience
Evils in litigation have led disputing parties to prefer settlement of conflicts via alternative dispute resolution. The evils include lengthy processes, time consuming, expensive cost, stringent and technical procedures, as well as offensive in nature which ruins cordial relationships between li...
| Main Authors: | , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
Ahmad Ibrahim Kulliyyah of Laws (AIKOL), International Islamic University Malaysia
2017
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/57282/ http://irep.iium.edu.my/57282/ http://irep.iium.edu.my/57282/1/57282-edited.pdf |
| Summary: | Evils in litigation have led disputing parties to prefer settlement of conflicts via alternative
dispute resolution. The evils include lengthy processes, time consuming, expensive cost,
stringent and technical procedures, as well as offensive in nature which ruins cordial
relationships between litigants. However, the increased use of alternative dispute resolution
especially arbitration and active involvement of legal practitioners in its procedures had
caused arbitration to be infected with the same disease like litigations making it not
much appealing as it used to be. Hence, people has moved towards using other forms of
alternative disputes resolution mechanisms. To encourage the use of alternative dispute
resolutions, authorities in various jurisdictions have taken numerous measures to invest
it with attractive benefits. In Malaysia, Bank Negara Malaysia as an authority for the
financial sector initiated the financial ombudsman scheme to be the preferred, statutory
sanctioned alternative dispute resolution mechanism for financial disputes with various
incentives. Among the incentives are it is free of charge, speedy and does not require
representation by legal practitioner. In this paper, we discuss the history of the financial
ombudsman scheme, its purposes, processes and benefits to financial consumers as well
as criticisms and suggestions for improvement of the scheme. |
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