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There may come a time when you are unhappy with a financial service you have used. You may feel you want compensation, an apology, or some specific course of action to rectify the problem. If you feel you have grounds to complain about a financial service or product, the options open to you are:
1. Resolve the issue with the company;
2. Go to a regulatory body;
3. Take your complaint to court.
Firstly, you should ask yourself if your complaint is really a complaint and not just a misunderstanding. Before you approach an independent regulator, contact the company in question by phone or by letter. Explain to them clearly and politely what your problem is. Write down the name of every person you speak to, the time you spoke to them, what action they said they would take and their extension number. If they refuse to give you their name or job title, contact the Financial Services Authority (FSA) and they will find out for you.
If you feel you might lose your temper dealing on the phone, write instead. Set out your complaint in a sensible order, including all relevant dates. Make sure that you write something along the lines of "please treat this letter as a formal complaint" at the beginning of the letter. Send copies of any documents with the form. Keep the originals. Keep a copy of the completed complaint form. You should give the company a reasonable amount of time to respond to your complaint - between 14 and 28 days.
Most financial services providers are members of a regulatory body or bound by an ombudsman. To use a regulatory scheme to pursue a complaint, you must have exhausted all avenues with the company concerned. The firm should tell you who to contact if you're not satisfied with the outcome of their investigation into your complaint.
There are two main types of regulatory body: an ombudsman and an arbitration service. An ombudsman scheme differs from an arbitration scheme in that it can look at all aspects of the complaint, whereas arbitration schemes are set out to work within the strict letter of the law and deal with problems as such.
If you choose to go to an ombudsman, this is what you can expect: firstly it may ask for extra evidence. Once this process is complete, it will decide whether your complaint is justified and order the firm involved to rectify it. The ombudsman usually has the power to make a decision which, in most cases, the firm must accept. Compensation is capped at £100,000. Usually you can choose whether or not to accept the decision. If you don't accept the decision, you can take your case to court if you want to. Some schemes bind you as well as the firm - once a ruling has been made, you cannot go to court.
Here are details of the main ombudsmen and regulatory bodies:
Financial Services Authority
www.fsa.gov.uk/consumer
The FSA is the financial services watchdog. The authority's consumer arm deals
with enquiries covering most areas of financial services. The FSA does not take
up personal cases on behalf of the public. If you are unsure of how to pursue
a complaint, call the FSA consumer helpline or download it's pamphlet on how
to complain at www.fsa.gov.uk/consumer/pdfs/complaint.pdf
Contact: FSA consumer helpline: 0845 606 1234
The Financial Ombudsman Service
www.financial-ombudsman.org.uk
The Financial Ombudsman Service was established by Parliament in 2001 as the independent expert in settling disputes between businesses providing financial services and consumers. It covers complaints from private individuals and small businesses about most financial matters including, for example, banking, credit unions, insurance, mortgages, savings and investments, credit cards and store cards, loans and credit, hire purchase and pawnbroking, financial advice, personal pensions, unit trusts, stocks. shares and bonds.
Contact: Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London E14 9SR
Tel: 0845 080 1800
email – enquiries@financial-ombudsman.org.uk
Financial Services Compensation Scheme
www.fscs.org.uk/
The Financial Services Compensation Scheme (FSCS) pays compensation if an authorised
firm is unable to pay claims against it (for example if it has gone out of business).
FSCS provides protection for customers of deposit-taking firms (for example
banks, building societies and credit unions). It is funded by the High Street
banks, building societies and investment companies and is triggered when an
authorised firm goes out of business. The maximum level of compensation you
can receive from the Scheme for a deposit claim is £31,700 (100% of £2,000
and 90% of the next £33,000).
Contact: Financial Services Compensation Scheme,
7th floor Lloyds Chambers,
Portsoken Street,
London E1 8BN
Tel: 20 7892 7300
Email: enquiries@fscs.org.uk, including your name and address.
The FSCS also considers endowment claims where a company is unable to pay compensation.
Pensions Ombudsman
www.pensions-ombudsman.org.uk/
The Pensions Ombudsman investigates and rules on disputes about the way that
pension schemes are run. Complaints about the sales and marketing of pension
schemes are dealt with by the Financial Ombudsman.
Contact: Pensions Ombudsman,
11 Belgrave Road
London SW1V 1RB
Telephone: 020 7834 9144
Email: enquiries@pensions-ombudsman.org.uk
Pensions Advisory Service (TPAS)
www.opas.org.uk
The Pensions Advisory Service is an independent non-profit organisation that
provides information and guidance on the whole spectrum of pensions covering
State, company, personal and stakeholder schemes. OPAS gets involved before
the Pensions Ombudsman who is normally the final arbiter in the matter. TPAS
does not have statutory powers and can only effect a resolution through persuasion
and conciliation. The Ombudsman on the other hand has similar powers to a court
of law.
Contact: TPAS,
11 Belgrave Road,
London
SW1V 1RB
Tel: 0845 6012923
Email: enquiries@opas.org.uk
The Pensions Regulator (TPR)
www.opra.co.uk/
Opra looks into reports that pension schemes have broken the law. It can take
action on certain reported breaches of pensions legislation and can impose civil
penalties on those responsible. Can take criminal breaches of pensions law to
court. Opra also helps people trace pension schemes that they have lost touch
with.
Contact: Opra,
Invicta House,
Trafalgar Place,
Brighton
BN1 4DW
Tel: 01273 627600
Email: helpdesk@opra.gov.uk
Citizens Advice Bureaux
For advice on a range of issues including consumer complaints about faulty products
and so on, the CAB network is invaluable. If you decide to take a financial
service provider to court, it can also advise you on how to go about it, and
matters such as legal aid eligibility.
To find your local Citizens Advice Bureau Look in the phone book under ‘Citizens Advice Bureau’. National Association of Citizens Advice Bureaux tel: 020 7833 2181 website – www.nacab.org.co.uk (England, Wales and Scotland) www.nicab.org (Northern Ireland) www.adviceguide.org.uk
If you decide to go to court
You can’t normally take your complaint to the courts if you have already
been through an arbitration scheme or the Pensions Ombudsman. But if you went
to the Financial Ombudsman Service or GISC scheme, or you have not used an independent
complaints scheme at all, you can choose to go to court if you wish. In England,
Wales and Northern Ireland, you normally bring your case in the county court.
In Scotland, you go to the sheriff court. Your case can usually be dealt with
through the ‘small claims track’ or ‘small claims court’,
if the amount you are claiming is no more than:
To find a local legal advice centre, contact:
Law Centres,
Federation Duchess House,
18-19 Warren Street,
London
W1T 5LR
Tel: 020 7387 8570
Email: info@lawcentres.org.uk
Website: www.lawcentres.org.uk
