A Handbook for Consumer Advisers

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a handbook for

consumer advisers


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This guide

outlines our procedures and general approach

when we resolve disputes and

explains how you can get more information about

us and our dispute-resolution work.

It is intended for professional consumer advisers

working in local authority trading standards

departments, Citizens Advice Bureaux, debt adviceagencies and other front-line consumer advice agencies.

This guide does not provideThis guide does not providedetailed legal guidance.detailed legal guidance.

www.fi nancial-ombudsman.org.uk


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what exactly is the ombudsman service?

The Financial Ombudsman Service is an independent,

impartial dispute-resolution organisation. Our job is to help

resolve individual disputes between consumers and businesses

providing fi nancial services including banks, building

societies, insurance fi rms and fi nancial advisers.

We also cover for their fi nancial services activities many

businesses (for example, motor dealers) that offer fi nancial

services as a secondary activity to their main business.

We are not a regulator or a consumer champion. Nor are we

a government department or quango. We settle disputes

without taking sides.

We were given powers under the Financial Services and MarketsAct 2000 and the Consumer Credit Act 2006. Rules made

under these Acts set out the way businesses and the Financial

Ombudsman Service should handle complaints about fi nancial

services and products. These rules form part of the Handbookof

the Financial Services Authority (FSA), in the section,

Dispute Resolution: Complaints (the DISP rules).

They are available on the FSAs website (www.fsa.gov.uk).

a handbook for consumer advisers


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can I bring a complaint to you on behalfof a consumer?

Anyone can help a consumer make a complaint for example

a family member or friend, or a professional consumer adviser.

But the consumer must sign our complaint form and we will need

their written authority before we can discuss the case with the

person helping them.

Consumers do not usually need professional help for example

from a solicitor or claims-handling fi rm to bring a complaint

to us. We decide a complaint by looking at the facts not at how

well it is presented.

Consumers who decide to pay someone to present their case

for them will almost certainly have to pay the cost of this

themselves. They should not expect to be able to claim back

costs of this kind, even if we decide their complaint is valid.


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We aim to be accessible to everyone. We can adapt the way we

communicate with consumers, depending on their needs.

We can provide information in different languages and in formats

including Braille, large print or audiotape.

Please let us know if a client has specifi c accessibility needs andwe will do our best to help.

You can contact us about accessibility needs by email

accessibility@fi nancial-ombudsman.org.uk

what about consumers with specifi caccessibility needs?


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We cover complaints about most fi nancial products and services

provided in (or from) the United Kingdom. Generally speaking,

we can usually deal with a complaint if it is made within the

relevant time limits and our rules cover:

the business concerned

the activity complained about and

the complainant.

business

We cover all retail fi nancial businesses regulated by the Financial

Services Authority (FSA). From April 2007 we have also covered

all businesses that have a standard consumer credit licence from

the Offi ce of Fair Trading (OFT). And we cover some businesses

that have agreed voluntarily to be covered by us.

activity

We cover activities regulated by the FSA such as accepting

deposits and providing (or advising on) investment products,

mortgages and insurance policies. Since April 2007 we have also

covered consumer credit activities, as set out in the Consumer

Credit Act 2006 (although for FSA-regulated businesses,

some loans and credit cards were already covered).

what complaints can you deal with?

continued ...continued ...


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The activities we cover include:

banking

insurance

mortgages

pensions

savings and investments

credit cards and store cards

loans and credit

hire purchase and pawnbroking

fi nancial advice

stocks, shares, unit trusts and bonds.

complainant

The complaint must be made by (or on behalf of): a private individual

a business with a yearly turnover of under 1 million

(some restrictions apply)

a charity with a yearly income of under 1 million or

a trust with net assets of under 1 million.

The 1 million limit relates to the complainants fi nancial

position at the time they complained to the business.continued ...continued ...


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We cover complaints about most retail fi nancial products and

services provided in (or from) the UK. But the rules we have

to follow can be very complex. If we are asked to look into a

complaint we will explain any particular rules or restrictions

that may apply in that case. We will always give consumers the

chance to query anything they dont understand or agree with.

If you are not certain whether we can help with a particular

problem, please contact us and ask.

what complaints dontyou deal with?

call our technical advice desk oncall our technical advice desk on020 7964 1400020 7964 1400


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If a consumer has a problem with a fi nancial product or service, they

should raise the matter with the business they feel is responsible.

This gives the business the chance to put things right at an early stage.

In many cases the business will be able to sort out the problem itself.

Many disputes stem from simple misunderstandings that could havebeen avoided through better communication on both sides.

If there are diffi culties contacting the business or if the business

doesnt respond, let us know. Well explain what to do next.

We will not consider a complaint until the business involved has

had the chance to deal with it. The business should investigate the

complaint and decide how it wants to respond. The complaints-

handling rules require businesses to try to resolve complaints at

the earliest opportunity.

Businesses must comply with the rules. These rules set out various

time limits for dealing with complaints and include the requirement

to send the consumer a fi nal response (or an explanation of why the

business is unable to do this), no more than eight weeks from the date

the complaint was received anywhere within the business.

The business must also send the consumer our contact details and

our consumer leafl et, your complaint and the ombudsman.

whats the fi rst step to complaining?

how should a business deal with aconsumer complaint?

ring our customer contact division onring our customer contact division on0845 080 18000845 080 1800


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This is the full response the business makes to the consumers

complaint. In it, the business should:

give a summary of the complaint

set out its fi nal view on the issues raised in the complaint

and the outcome of its investigation

say whether it acknowledges there has been any fault on

its part

give details of any offer it is making to settle the complaint,

and a clear explanation of how it arrived at that offer; and

tell the consumer about their right to refer the dispute to

the Financial Ombudsman Service within six months,

if they remain unhappy with the response.

If, at the end of eight weeks, the business wants more time and the consumer agrees to this we will not automatically get

involved. But the business still needs to have told the consumer

about their right to bring their complaint to the ombudsman.

If the consumer brings the complaint to us after eight weeks,

and we are satisfi ed that special features of the complaint mean

the business clearly needs more time, we may decide not to look

into it immediately. But we do not expect businesses to ask us

for an extension of time as a matter of routine.

what is a fi nal response?


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In the fi rst instance, all consumer enquiries are dealt with in

our front-line customer contact division. The staff here give

consumers general advice and guidance on what to do if they

have a complaint about a fi nancial service or product.

If consumers complain to us before they have given the businessthe opportunity to put things right, we will refer the complaint

on to the business. If the business can resolve the complaint to

the consumers satisfaction at this stage, we will have no further

involvement in the case.

But if the consumer remains dissatisfi ed, we can look into the

complaint if:

the business has already sent a fi nal response letter

(and the consumer brings the complaint to us within six

months of the date of that letter) or

the eight weeks have passed and the business has been

unable to send the consumer its fi nal response letter.

what happens when a consumercomplains to the ombudsman service?


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The consumer will need to complete our complaint form.

This can be downloaded from the how to complain section of

our website (www.fi nancial-ombudsman.org.uk).

We can guide consumers through the complaint form over the

phone, complete as much of it as possible with them, and then

send it to them to check and sign. This can be more effi cient,because we can encourage people to focus on the key facts.

When we receive a completed complaint form, we will

check it and look at any accompanying documents. In some

circumstances, we may decide a case is not something we deal

with. Or we may be able to intervene directly to sort things out

at this stage for example, where it is clear that a problem has

arisen out of a simple administrative error or misunderstanding

between the customer and the fi rm.

Otherwise, we will pass the complaint on to one of our specialist

casework teams of adjudicators.

what happens then?

the consumer may prefer to phone us onthe consumer may prefer to phone us on 0845 080 18000845 080 1800


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We generally settle complaints on the basis of the paperwork

that the consumer and the business provide rather than on

face-to-face meetings. Consumers should send us all the

relevant information and set out as clearly as they can:

what they think has gone wrong

why they believe the business is at fault and

what they think the business should do to put

the matter right.

At any stage in our process, we may ask either the consumer

or the business for further information about the complaint

(including any information involving third parties).

By signing our complaint form, the consumer authorises

us to exchange information about their complaint with the

business concerned.

We may publish general information about complaints for

example, as part of our complaints-prevention work but we

do not publicise the names of the individual consumers or

businesses involved. The service we provide is confi dential.

what information do you needfrom the consumer?


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We consider each complaint on its own merits and decide what

we believe is fair and reasonable in the circumstances of each

particular case. This includes taking into account relevant law,

codes of practice, and regulatory rules and guidance.

Where the two sides of the story seem to be at odds,or the evidence is contradictory, we make decisions on the

basis of what we believe is more likely to have happened,

on the balance of probability. We are not bound by legal

precedent, but we aim to be consistent in the way we deal

with particular types of complaint.

Although we are impartial like a judge the complaints-

resolution service we provide is not like going to court. We can

get to the bottom of most complaints by writing to or phoning

the people involved. Sworn witnesses, cross-examination and

formal legal submissions are not part of our usual process.

Our approach depends on the facts and merits of each individual

case but generally involves mediation or conciliation. This is

the informal way in which we try to resolve the majority of the

complaints brought to us. It can be quicker and more effi cient

than a formal investigation.

how do you deal with cases?

continued ...continued ...


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Often, just by taking a fresh look at the facts and identifying

and agreeing the key issues as we see them our adjudicators

can come up with a solution that satisfi es both sides. So our

informal approach may involve phoning both the business and

the consumer to suggest a way forward.

If we are unable to resolve the matter over the phone, or if

the nature of the case makes a written explanation more

appropriate, we will confi rm our position in writing.

The adjudicator will explain their view on the case and set out

how, in their opinion, the case should be resolved.

In some of our more complex cases, the adjudicator may issue

an adjudication report. This is a formal document, setting out:

the details of the dispute

the fi ndings of the adjudicator and

any redress that the adjudicator considers appropriate.

The adjudicator will send the report to both the business and

the consumer at the same time, and will give both sides the

opportunity to respond.


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In most cases, both parties accept the adjudicators fi ndings

and the complaint is then settled. But if either side does not

understand any part of the procedure or does not agree with

the adjudicators fi ndings they should contact the adjudicator.

If matters remain unresolved, they may ask for a review and fi nal

decision by an ombudsman. This happens in fewer than one in

ten cases.

If an ombudsman becomes directly involved in a case at this

stage, they will carry out an independent review of the complaint

before issuing a fi nal decision. If the consumer accepts an

ombudsmans decision within the time limit given by the

ombudsman, both the consumer and the business are bound

by the decision. Otherwise, the business is not bound but theconsumer remains free to take court proceedings against the

business. We cannot give advice on any court action or on the

consumers legal rights in these circumstances.

A fi nal decision by an ombudsman is the end of our

complaints-handling process. Neither the business nor the

consumer can appeal against an ombudsmans decision by

going to another ombudsman.

what if one of the parties doesnt acceptthe adjudicators view?


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This will depend on the individual case. Our aim is generally to

try to put the consumer in the position they would now be in,

if the event they complained about had never happened.

If we award the consumer an amount of money to cover the

fi nancial loss they have suffered, the business will have to paythat sum. It will also have to pay any amount we may award

for distress and inconvenience. We do not automatically make

awards for distress and inconvenience and the amount involved

is usually modest.

We can also direct a business to take whatever steps we consider

are just and appropriate in relation to the complaint (whether or

not a court could order those steps to be taken).

If the consumer accepts an ombudsmans decision, the rules

require the business to comply promptly with any money award

or other direction that the ombudsman makes. If it does not doso, the consumer can, if necessary, go to court to enforce the

award or direction.

The business must also comply promptly with any settlement it

may have agreed to make at an earlier stage of our process for

example, during conciliation or following an adjudicators view.

how is any compensation worked out?

do businesses have to comply with anombudsmans decision?


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No. Our role is to settle individual disputes between consumers

and businesses that provide fi nancial services. It is not our job

to fi ne or punish businesses or to monitor them to make sure

they follow the relevant rules and law. Concerns about a business

not following the rules should be raised with the appropriate

regulator, usually the Financial Services Authority (FSA) or the

Offi ce of Fair Trading (OFT).

We resolve most complaints within six months. But some can

take longer, particularly if we need to make detailed enquiries.

We are funded by a combination of: a general levy paid by the fi nancial services industry and

individual case fees that businesses have to pay.

Under the rules, consumers do not pay a fee for using the

ombudsman service.

do you punish or fi ne a business if youuphold a complaint against it?

how long does it take you to resolve cases?

how is the ombudsman service funded?


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Our website (www.fi nancial-ombudsman.org.uk) contains

information for consumers and professional consumer

advisers. This includes details of how to complain and of

all our publications, together with the answers to many

frequently-asked questions.

We publish a regular newsletter, ombudsman news. This contains

case studies and feedback on recent complaints, as well as

articles and background briefi ngs on a range of related topics.

If you are trying to track down how we may have handled a

similar type of complaint in the past, you can use the search

facility on our website to look through previous issues of

ombudsman news.

To receive your own regular copy ofombudsman news

free of charge email our publications helpline

publications@fi nancial-ombudsman.org.uk

or phone 020 7964 0092 and well add you to our mailing list.

how can I get information about theombudsman service?


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Our technical advice desk offers a free and informal service for

businesses and professional consumer advisers. The technical

advice desk:

answers queries from professional consumer advisers

gives information about how the ombudsman service

works and

gives informal guidance on complaints-handling matters

and how the ombudsman service might view specifi c issues.

email technical.advice@fi nancial-ombudsman.org.uk

The technical advice desk is a free and informal service for

businesses and professional consumer advisers only. Please do

not give the contact details directly to consumers.

email complaint.info@fi nancial-ombudsman.org.uk

how can I get guidance on aspecifi c complaint?

The technical advice desk has its own helpline onThe technical advice desk has its own helpline on020 7964 1400020 7964 1400

Consumers wanting help and informationConsumers wanting help and informationshould contact our customer contact division onshould contact our customer contact division on0845 080 18000845 080 1800


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Yes. We run a series of events around the UK for professional

consumer advisers for example, trading standards offi cers,

money advisers and citizens advice workers. These events are

free of charge. They provide the opportunity to learn more about

the ombudsman service and to take part in informal discussion

about fi nancial complaints and the ombudsmans role.

To fi nd out more, check out our website


do you offer any training forconsumer advisers?

or phone our technical advice desk onor phone our technical advice desk on020 7964 1400020 7964 1400


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We were set up by law to help settle individualdisputes between consumers and businesses providing

fi nancial services.

We do not regulate (or police) fi nancial services businesses

we settle individual disputes without taking sides.

Our service is free to consumers.

Small businesses (and charities) can complain to us too.

The business must have the chance to look at the

complaint fi rst, before we can look at the case.

Consumers must refer a complaint to us within six months

of the date of the fi nal response letter from the business

they are complaining about.

Consumers can complain to us by phone (0845 080 1800)

or by downloading a complaint form off our website

(www.fi nancial-ombudsman.org.uk).

Consumers do not have to accept any decision we make

they are always free to go to court instead.

But if they accept a decision, it is binding on the

business and the consumer.

the Financial Ombudsman Servicethe Financial Ombudsman Service


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Produced by the communications team at the Financial Ombudsman Service Financial Ombudsman Service Limited March 2008

how to contact us

for general questions or technical queries

020 7964 1400

technical.advice@fi nancial-ombudsman.org.uk

our phone number for consumers

0845 080 1800

address

Financial Ombudsman Service

South Quay Plaza

183 Marsh WallLondon E14 9SR

switchboard

020 7964 1000

DX 141280 Isle of Dogs 3

A Handbook for Consumer Advisers

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Transcript of A Handbook for Consumer Advisers