a handbook for

consumer advisers
www.financial-ombudsman.org.uk

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 advice
agencies and other front-line consumer advice agencies.

This guide does not provide

detailed legal guidance.
 a handbook for consumer advisers

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 financial services – including banks, building
societies, insurance firms and financial advisers.

We also cover – for their financial services activities – many

businesses (for example, motor dealers) that offer financial
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 Markets

Act 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 financial
services and products. These rules form part of the Handbook of
the Financial Services Authority (FSA), in the section,
Dispute Resolution: Complaints (the “DISP” rules).
They are available on the FSA’s website (www.fsa.gov.uk).

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can I bring a complaint to you on behalf

of 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 firm – 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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what about consumers with specific

accessibility needs?
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 specific accessibility needs and

we will do our best to help.

You can contact us about accessibility needs by email

[email protected]

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what complaints can you deal with?

We cover complaints about most financial 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 financial 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 Office 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).

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
■ financial 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 complainant’s financial

position at the time they complained to the business.

continued ...

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The rules also list a number of people who can complain even
though they are not customers or potential customers of the
business. These include, for example:
■ employees covered by a group insurance policy – who can
generally complain to us even though the policy is held in
their employer’s name
■ people about whom a credit reference agency holds
information relevant to their financial standing
■ people from whom a debt-collecting agency has sought to
recover certain debts.

time limits
We cannot normally deal with complaints where:
■ more than six months have passed since the business
sent the consumer its final response and details of the
ombudsman service
■ more than six years have passed since the event the
complaint relates to; or
■ (if more than six years have passed) it is more than three
years since the person complaining first became aware
of the problem (or could reasonably be expected to have
become aware of the problem).

We have discretion to waive these limits in exceptional

circumstances – or where the business does not object.
There are also some special rules on time limits that apply to
mortgage endowment complaints.

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what complaints don’t you deal with?

We cover complaints about most retail financial 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 don’t understand or agree with.

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

problem, please contact us and ask.

call our technical advice desk on

020 7964 1400

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what’s the first step to complaining?

If a consumer has a problem with a financial 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 have
been avoided through better communication on both sides.

If there are difficulties contacting the business or if the business

doesn’t respond, let us know. We’ll explain what to do next.

ring our customer contact division on

0845 080 1800
how should a business deal with a
consumer complaint?
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 final 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 leaflet, your complaint and the ombudsman.

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what is a final response?

This is the full response the business makes to the consumer’s

complaint. In it, the business should:
■ give a summary of the complaint
■ set out its final 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 satisfied 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.

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what happens when a consumer

complains to the ombudsman service?
In the first 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 financial service or product.

If consumers complain to us before they have given the business

the opportunity to put things right, we will refer the complaint
on to the business. If the business can resolve the complaint to
the consumer’s satisfaction at this stage, we will have no further
involvement in the case.

But if the consumer remains dissatisfied, we can look into the

complaint if:
■ the business has already sent a final 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 final response letter.

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what happens then?

The consumer will need to complete our complaint form.

This can be downloaded from the “how to complain” section of
our website (www.financial-ombudsman.org.uk).

the consumer may prefer to phone us on

0845 080 1800
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 efficient,
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 firm.

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

casework teams of adjudicators.

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www.financial-ombudsman.org.uk

what information do you need

from the consumer?
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 confidential.

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how do you deal with cases?

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 efficient
than a formal investigation.
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 satisfies 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 confirm 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 findings 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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 a handbook for consumer advisers

what if one of the parties doesn’t accept

the adjudicator’s view?
In most cases, both parties accept the adjudicator’s findings
and the complaint is then settled. But if either side does not
understand any part of the procedure – or does not agree with
the adjudicator’s findings – they should contact the adjudicator.
If matters remain unresolved, they may ask for a review and final
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 final decision. If the consumer accepts an
ombudsman’s 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 the
consumer remains free to take court proceedings against the
business. We cannot give advice on any court action – or on the
consumer’s legal rights in these circumstances.

A final decision by an ombudsman is the end of our

complaints-handling process. Neither the business nor the
consumer can appeal against an ombudsman’s decision by
going to another ombudsman.

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how is any compensation worked out?

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

financial loss they have suffered, the business will have to pay
that 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).

do businesses have to comply with an

ombudsman’s decision?
If the consumer accepts an ombudsman’s decision, the rules
require the business to comply promptly with any money award
or other direction that the ombudsman makes. If it does not do
so, 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 adjudicator’s view.

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do you punish or fine a business if you

uphold a complaint against it?
No. Our role is to settle individual disputes between consumers
and businesses that provide financial services. It is not our job
to fine 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
Office of Fair Trading (OFT).

how long does it take you to resolve cases?

We resolve most complaints within six months. But some can

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

how is the ombudsman service funded?

We are funded by a combination of:

■ a general levy paid by the financial 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.

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how can I get information about the

ombudsman service?
Our website (www.financial-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 briefings 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 of ombudsman news

– free of charge – email our publications helpline
[email protected]
or phone 020 7964 0092 and we’ll add you to our mailing list.

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how can I get guidance on a

specific complaint?
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 specific issues.

The technical advice desk has its own helpline on

020 7964 1400
email [email protected]

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.

Consumers wanting help and information

should contact our customer contact division on
0845 080 1800
email [email protected]

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do you offer any training for

consumer advisers?
Yes. We run a series of events around the UK for professional
consumer advisers – for example, trading standards officers,
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 financial complaints and the ombudsman’s role.

To find out more, check out our website

www.financial-ombudsman.org.uk

or phone our technical advice desk on

020 7964 1400

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the Financial Ombudsman Service

■ We were set up by law to help settle individual
disputes between consumers and businesses providing
financial services.

■ We do not regulate (or ‘police’) financial 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 first, before we can look at the case.

■ Consumers must refer a complaint to us within six months

of the date of the final 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.financial-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.

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how to contact us
for general questions or technical queries address
020 7964 1400 Financial Ombudsman Service
[email protected] South Quay Plaza
183 Marsh Wall
our phone number for consumers
London E14 9SR
0845 080 1800
switchboard
020 7964 1000

DX 141280 Isle of Dogs 3

Produced by the communications team at the Financial Ombudsman Service

© Financial Ombudsman Service Limited, March 2008

335/31.03.08