External Dispute Resolution (EDR) Explained
How free, independent ombudsman and EDR schemes work in Australia, and how to choose the right one for your complaint.
In this profile
- Explain what external dispute resolution means in plain English
- Describe how ombudsman and EDR schemes generally operate
- Help readers choose the right scheme for their complaint
- Show how EDR fits into resolving debt and credit disputes
- Encourage readers to confirm details on each scheme's official website
8 min read
What it is
External dispute resolution, or EDR, refers to independent schemes that help resolve complaints outside the courts and outside the organisation you are complaining about. In Australia these schemes are often called ombudsman schemes. They are designed to be fair, accessible and, for consumers, usually free. Examples include financial, telecommunications, energy and water, and government oversight bodies.
Each scheme has its own scope, rules and contact details, which are published on its official website. Please check the official website of the relevant scheme for current details, as processes and coverage change over time.
How it works
Most schemes follow a similar pattern. You generally complain to the organisation first and give it a chance to resolve the issue through its internal complaints process. If that does not work, you take the matter to the EDR scheme. The scheme may help the parties reach an agreement, and some schemes can make a decision that binds the organisation.
- Raise the complaint with the organisation's internal process
- If unresolved, lodge with the relevant EDR scheme
- The scheme may facilitate a resolution or make a decision
- Schemes have limits on what they can consider and award
The specifics differ between schemes, so the official rules are the authoritative source.
Choosing the right scheme
Picking the right scheme depends on what your complaint is about. Financial complaints, including banking, credit, insurance and super, generally go to AFCA. Phone and internet complaints go to the telecommunications ombudsman. Electricity, gas and water complaints go to the relevant state energy and water ombudsman. Complaints about government agencies go to the relevant state, territory or Commonwealth ombudsman.
If you are not sure where to start, you can browse a general overview of bodies on the Merion directory and then confirm the correct scheme on its official website.
Relevance to debt & credit
For debt and credit problems, EDR schemes can be a powerful, free option. If your complaint is about a lender, a credit product, a financial hardship request or a debt collector acting for a financial firm, AFCA is usually the relevant scheme. Utility debt complaints go to the relevant energy and water ombudsman, and telco debt complaints go to the telecommunications ombudsman. Free financial counsellors can also help you work out the best pathway.
How to reach them
Each scheme publishes its current contact details, complaint form and accessibility options on its official website. We deliberately avoid listing phone numbers here because they change. Please check the official website of the relevant scheme for current details before lodging a complaint.
Key takeaways
- EDR schemes resolve complaints independently, outside the courts
- Complain to the organisation first, then escalate to the right scheme
- Match the scheme to the complaint: financial, telco, utility or government
- Always confirm scope and contact details on each scheme's official website
Frequently asked questions
What does EDR stand for?
External dispute resolution. It refers to independent schemes, often called ombudsman schemes, that resolve complaints outside the courts and the organisation involved.
Do I have to complain to the company first?
Usually yes. Most schemes expect you to use the organisation's internal complaints process first, then escalate to the EDR scheme if it is not resolved.
Which scheme handles debt and credit complaints?
For lenders, credit products and financial hardship, AFCA is usually the relevant scheme. Utility and telco debts go to the relevant energy and water or telecommunications ombudsman.
This is general information, not legal or financial advice. Details can change — always confirm current contact details and processes on the organisation's official website.
Know who to turn to
A free, plain-English directory of the regulators, courts, schemes and services behind debt and credit in Australia.