Banking and Loans

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DECISIONS.DECISIONS.. Ian Woodman David
Bainbridge Financial Ombudsman Service External
Liaison Team Relationship Managers
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why have an Ombudsman?

• an independent impartial service resolves
  deadlocked disputes between consumers and
  financial firms
• to achieve a fair and reasonable outcome at the
  earliest possible opportunity
• can save time and expense of costly litigation
• increases consumer confidence
• promotes dispute avoidance

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gathering the evidence

• inquisitorial remit
• consumers might need our help
• complaint form completed by consumer
• we will get to the crux of the dispute and will
  ask either side all the questions we need to
• ample opportunity for both sides to submit their
  case
• we read and listen very carefully

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making the decision

• a decision might not be needed a fresh pair of
  eyes can make a difference
• can we mediate a settlement maybe help both
  sides to see things in a new light?
• experienced, fair minded adjudicators
• where a more formal approach is needed the
  adjudicator will recommend a way forward but
  tells the losing side first
• ample opportunity to discuss or challenge

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making up our mind

• fair and reasonable take account of the law,
  contract wording, regulation, codes good
  industry practice
• can look beyond strict legal position discreet
  use
• evidence based decisions
• expert, independent evidence is most valuable
• documentation crucial call recordings useful
• balance of probabilities where uncertainty exists
• both firm and consumer can appeal to the
  ombudsman
• although less than 10 go to the ombudsman
  

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so how are brokers faring so far?

• private motor
• loan protection / PPI (but will be number 1 soon)
• household buildings contents
• travel
• income protection / permanent health
• commercial

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what products are the complaints about?
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so why do clients complain about their broker?

• general maladministration issues (e.g. delays)
• premium issues (e.g. failing to pass premiums on
  to insurers, time taken to return premiums,
  mis-quotes)
• non-disclosure issues did the intermediary fail
  to pass on information to the insurer?
• client dissatisfaction with firms complaint
  handling
• but no real trends or themes have emerged so far

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motor (27) why do consumers complain?

• total loss valuations
• thefts keys in car
• poor quality of repairs / approved repairers
• non-disclosure

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household buildings contents (20.5)

• quality of repairs / delays
• insured peril or wear and tear?
• repair, replace or cash?
• matching sets
• allegations of fraud
• non-disclosure

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travel (10.5) why do consumers complain?

• pre-existing medical conditions
• cancellation / curtailment
• baggage money
• allegations of fraud / substantiation of claim

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why do complaints arise the firms view?

• media
• friends and family
• ambulance chasers
• malicious

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ombudsman referrals - why? (FSA survey results)

• attitude of staff
• standard of service
• not related to outcome

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why are complaints referred? our view

• how the complaint was handled
• missing the point
• quality of investigation
• dutch bargaining
• making it personal
• quality of final response
• never learn repeating the same errors again and
  again

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if you do receive a complaint remember..

• when we are considering a complaint it is the
  strength of your arguments that are important,
  not the strength of your feelings
• is it possible for an independent employee /
  partner to audit your Final Response before it
  goes out?
• be prepared to discuss cases over the telephone
• if you have made an error, offer redress that
  adequately compensates the consumer for
  non-financial loss as well as the financial loss
  even administration errors can cause distress
  and inconvenience

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• technical advice desk - informal guidance on our
  practice and procedures
• and
• www.financial-ombudsman.org.uk

0207 964 1400
technical.advice_at_financial-ombudsman.org.uk
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what would you like to ask now or later?