FOOL'S EYE VIEW
How To Complain About Financial Products

By Jane Mack (TMFJane)
November 30, 2001

If you've ever wanted to complain to an ombudsman about a financial product or service, you've probably had a bit of trouble trying to find out which one to complain to. Up to now, there have been six of them! One for banking, one for insurance, another for investments... Can you believe the bureaucracy?

It all changes from midnight tonight, when the Financial Ombudsman Service officially becomes the single ombudsman for consumers' financial complaints. So, from now on, if you've got a problem with your bank, building society, insurance company, investment firm, financial advisor or stockbroker that you haven't been able to resolve, there's only one port of call you need to know about. Complaints ranging from pet insurance and pension plans to mortgages and investments will now all be dealt with under one roof.

Obviously the Ombudsman is the last resort. Consumers are expected to try their best to resolve any disputes directly with the organisation concerned and to follow the company's own complaints procedure right the way through. The FOS website has an excellent section telling you how to complain effectively. It's all too easy to get het up and angry with an organisation. But the person on the other end of the phone or who is reading your letter of complaint is a human being too! If you're rude, they might not feel inclined to bend over backwards to help sort the problem out.

But what happens if you don't get anywhere anyway? How can the new Ombudsman service help?

The first thing is to get hold of their complaint form, either by phoning them on 0845 080 1800 or by visiting their website. The form tells you exactly the sort of information they need and they will then use it to act as an informal mediator between you and the company concerned. If that doesn't work, an adjudicator will hold a full investigation into the case before coming to a decision.

The powers of the new Ombudsman are quite extensive. The new Financial Services and Markets Act 2000, which comes into effect tomorrow, gives the FOS its own legal powers to tell the offending organisation to put things right. Their aim is to put you in the position you'd have been in if things hadn't gone wrong in the first place. Also, their decisions are binding on the firm up to a total of £100,000. It's not a punishment or a fine -- it's simply means of ensuring that you are reimbursed for any money you've lost.

Obviously, if the Ombudsman thinks you're wrong, then you'll be told as much! But the good news is that while their decision is binding on the company, it's not binding on you. So if you disagree with the outcome, you're still free to take the matter to court if you want to.

Bear in mind that you need to make any complaint to the Ombudsman within six months of getting the final response letter from the company you're having trouble with. So don't dither! But at least from now on, there's only one Ombudsman to contend with!

More information: Financial Ombudsman Service