The Financial Ombudsman Service (FOS) closed more disputes in the September quarter as it worked through its backlog.

It closed 8927 cases, up 5% on the preceding quarter and 2% on the corresponding period last year. About 66% were resolved through agreements between provider and consumer, FOS says in its latest circular.

Almost half the disputes FOS receives relate to credit and a quarter to general insurance.

General insurance accounts for 26% of accepted disputes, where FOS starts to play an active role in resolution. That percentage is similar to previous quarters.

FOS reports systemic issues to the Australian Securities and Investments Commission.

During the quarter it identified an issue with the conduct of an investigator working on a comprehensive motor vehicle claim. FOS made a determination in the consumer’s favour after finding the investigator breached the insurer’s duty of utmost good faith.

“In particular, the conduct of seeking to recover investigation costs from the applicant was considered to be inappropriate,” FOS says.