UK Financial Ombudsman Service
independent
external
review
David Thomas
Lordand
Hunt
of Wirral
corporateby
director
principal
ombudsman
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UK Insurance Ombudsman
established by insurers voluntarily in 1981
in partnership with consumer bodies
alternative to civil courts
but redress beyond the law
binding on provider, but not consumer
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characteristics
complain to provider first
free to consumer
flexible and informal processes
mediation or investigation and decision
specialist knowledge
encouraging complaint resolution / prevention
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other financial ombudsmen followed
banks
building societies (mutual mortgage banks)
investment product providers
investment intermediaries
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Financial Services and Markets Act 2000
Financial Services Authority
(the regulator)
Financial Ombudsman Service
(resolves on unresolved disputes)
Financial Services
Compensation Scheme
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providers covered
services provided in or from the UK by all:
banks and building societies
other lenders (mortgages and consumer credit)
mortgage and loan intermediaries
credit unions and electronic money institutions
insurers and insurance intermediaries
investment providers and intermediaries
credit reference agencies and debt collectors
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complainants covered
individual
business
(< €1.5 million turnover)
from UK and world-wide
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any complaint
not resolved by
close of the
following
business day
prompt written
acknowledgement
to consumer
what the rules require
providers to do
keep consumer
informed
within 8 weeks:
‘final response’
with details of
ombudsman
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If complainant has not complained to provider
we:
send the provider details of the complaint, and
remind it to issue a final response within 8 weeks
send the complainant a pre-populated complaint
form, to complete and return it if the complaint is
not resolved within 8 weeks
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customer contact division
phone
enquiries
(341, 455)
total
enquiries
(627,814)
written
enquiries
(286,359)
to casework
enquiries
converted to
cases
(94,392)
figures are for ALL financial products in year ended 31 March 2007
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case
casework division
early termination
by adjudicator
mediation by
adjudicator
non-binding
decision by
adjudicator
final
decision by
ombudsman
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early termination by adjudicator
for example:
no reasonable prospect of success
fair settlement on offer
more suitable for court
legitimate commercial judgment
[can ask for review by ombudsman]
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mediation by adjudicator
evaluative mediation
by agreement
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non-binding decision by adjudicator
(paper) investigation
legal power to compel evidence
non-binding decision
both sides can accept
either side can ask for the case to
go to an ombudsman (<10% do)
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review by ombudsman (internal appeal)
request by either side
additional evidence/arguments
possible hearing (rare)
final decision
if consumer accepts, both sides bound
otherwise, neither is bound
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basis of decision
law requires us to decide what is
‘fair and reasonable in the circumstances’
rules require us to take account of:
- relevant law
- regulators’ rules and guidance
- industry codes
- good industry practice
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redress
we can require the provider to:
pay compensation up to €150,000 *
pay interest
pay costs (rare)
* we can make a non-binding recommendation for more
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alternatively, or additionally
we can direct the provider to take
appropriate action in relation to the
complainant – for example:
put something right
reconsider an application or claim
apologise
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insurance cases: year to 31 March 2007
4,230 motor
680 critical illness
3,734 life
520 commercial
1,951 buildings
445 legal expenses
1,832 loan protection
388 medical
1,670 travel
273 pets
1,238 contents
202 breakdown
891 income protection
713 extended warranty
177 personal accident
77 caravan
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www.financial-ombudsman.org.uk
independent external review
by Lord Hunt of Wirral
www.financial-ombudsman.org.uk/accessibility/polish/
twoje_zazalenie_a_rzecznik_praw_obywatelskich.htm
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