UPDATE 4.30pm: STATE Trustees acting chief executive Agata Jarbin has reaffirmed the company’s commitment to working in its clients’ best interests, as the Victorian Ombudsman investigates after a ‘sustained increase in complaints’.
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“For the last five years, the contacts made by our clients or related persons to the ombudsman have been consistent with the exception of the 2016 financial year, when the number of contacts dropped,” she said.
State Trustees recorded 220 contacts in the 2018 financial year, four more than the previous year.
Contacts in the 2016 financial year amounted to 161, while in 2015 there were 208 contacts.
The number of contacts recorded in the 2018 financial year was the highest of the past five financial years with 213 contacts in the 2014 financial year.
“Only some of these contacts resulted in an inquiry by the Ombudsman to us,” Ms Jarbin said.
“We are working together with the Ombudsman to provide them with all the necessary information required during this period.
“We remain committed to working in our clients’ best interests and have recently significantly reduced State Trustees fees on a range of our core financial and estate services. We will continue to support our clients with quality services.”
The government-owned company announced a new pricing structure earlier this month, reducing fees for all existing and future clients of Powers of Attorney and Personal Financial Administration services, and all new beneficiaries of Deceased Estates from July 1.
“The reduction of fees for some of the State Trustees’ key services will help reduce the pressures facing many of their clients and deliver savings to Victorians,” acting treasurer Robin Scott said at the time.
A statement released by the government on July 2 indicated the new fee structure was aligned with State Trustees’ Public Benefit Strategy, ‘which focuses on putting clients first and delivering increased value to the Victorian community’.
State Trustees traces its roots back to 1851.
EARLIER: Concern at a ‘sustained increase’ in the number of complaints about State Trustees has prompted an investigation by the Victorian Ombudsman.
Ombudsman Deborah Glass will evaluate whether the state government-owned company is acting in the best interests of its vulnerable clients.
The State Trustees acts as an administrator for people who are unable to manage their financial and legal affairs due to disability, illness or injury.
The company administers the financial and legal affairs of about 11,000 people, according to its most recent annual report.
Assets under State Trustees management were valued at more than $1 billion.
Ms Glass said the investigation was prompted by a ‘sustained increase’ in complaints to her office about State Trustees.
She said complaints about State Trustees rose by 37 per cent in the year to June 30, 2017, and had remained at the same high level since.
The ombudsman said an increasing number of complaints this year had warranted enquiries and file inspections.
“While we have been helping to resolve individual complaints about State Trustees, I have identified possible systemic issues that warrant a deeper examination,” Ms Glass said.
“People have complained that State Trustees did not consult them about decisions or take their wishes into account,” she said.
“There have been complaints that State Trustees did not pay bills or other expenses in a timely way. Others have said communication with State Trustees is difficult.
“Many of the people who rely on State Trustees are vulnerable, and I want to ensure their rights are respected and protected.”
State Trustees has been contacted for comment.
The company has an office in Bendigo.