The power to settle financial complaints.
The power to settle financial complaints.
29 June 2005
The review shows that during the year the ombudsman service:
Commenting on the continued high volumes of mortgage endowment disputes being referred to the Financial Ombudsman Service, chief ombudsman, Walter Merricks, said:
We dealt with a record number of mortgage endowment disputes last year. The number we can expect to receive in the current year will largely be determined by how financial services firms meet the new regulatory requirements on so-called "re-projection" letters - several million of which will be sent to consumers with endowment policies over the coming year. Most of these letters will warn of likely mortgage shortfalls and many will give, for the first time, an explicit deadline by which any complaint must have been lodged. These letters could result in significant increases in the numbers of consumers contacting their endowment provider - and in sudden bulges in complaint volumes.
The industry regulator, the FSA, has already found evidence of serious shortcomings by some firms in the handling of endowment complaints. So this year's cycle of "re-projection" letters will be more testing and complex than before. To ensure that consumers are properly served, effective communication and co-ordination is essential between firms, the FSA and the ombudsman service. This should mean that the vast majority of consumer complaints can be dealt with by firms to the satisfaction of consumers. We stand ready to deal with the small proportion of cases where disputes are inevitable and agreement cannot be reached.
Other statistics from the annual review show:
The Financial Ombudsman Service was set up by law to help consumers settle unresolved disputes with banks, building societies, mortgage firms, insurance companies, investment firms, financial advisers and stockbrokers. Complaints covered by the ombudsman service range from travel insurance and pension plans to mortgages and savings accounts.
The Financial Ombudsman Service can step in to help resolve disputes where the consumer has already complained to the financial firm and remains dissatisfied. Consumers with an unresolved complaint can get in touch with the Financial Ombudsman Service on 0845 080 1800.
