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independent external review by Lord Hunt of Wirral

UK Financial Ombudsman Service David Thomas corporate director and principal ombudsman. independent external review by Lord Hunt of Wirral. UK Insurance Ombudsman. established by insurers voluntarily in 1981 in partnership with consumer bodies alternative to civil courts

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independent external review by Lord Hunt of Wirral

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  1. UK Financial Ombudsman Service David Thomas corporate director and principal ombudsman independent external review by Lord Hunt of Wirral

  2. UK Insurance Ombudsman • established by insurers voluntarily in 1981 • in partnership with consumer bodies • alternative to civil courts • but redress beyond the law • binding on provider, but not consumer

  3. characteristics • complain to provider first • free to consumer • flexible and informal processes • mediation or investigation and decision • specialist knowledge • encouraging complaint resolution/prevention

  4. other financial ombudsmen followed • banks • building societies (mutual mortgage banks) • investment product providers • investment intermediaries

  5. Financial Services Authority (the regulator) Financial Ombudsman Service (resolves on unresolved disputes) Financial Services Compensation Scheme Financial Services and Markets Act 2000

  6. providers covered services provided in or from the UK by all: • banks and building societies • other lenders (mortgages and consumer credit) • mortgage and loan intermediaries • credit unions and electronic money institutions • insurers and insurance intermediaries • investment providers and intermediaries • credit reference agencies and debt collectors

  7. complainants covered • individual • business (< €1.5 million turnover) • from UK and world-wide

  8. any complaint not resolved by close of the following business day prompt written acknowledgement to consumer keep consumer informed within 8 weeks:‘final response’ with details of ombudsman what the rules require providers to do

  9. If complainant has not complained to provider we: • send the provider details of the complaint, and remind it to issue a final response within 8 weeks • send the complainant a pre-populated complaint form, to complete and return it if the complaint is not resolved within 8 weeks

  10. phone enquiries (341, 455) written enquiries (286,359) totalenquiries (627,814) customer contact division enquiries converted to cases (94,392) to casework figures are for ALL financial products in year ended 31 March 2007

  11. casework division case early termination by adjudicator final decision by ombudsman non-binding decision by adjudicator mediation by adjudicator

  12. early termination by adjudicator for example: • no reasonable prospect of success • fair settlement on offer • more suitable for court • legitimate commercial judgment [can ask for review by ombudsman]

  13. mediation by adjudicator • evaluative mediation • by agreement

  14. non-binding decision by adjudicator • (paper) investigation • legal power to compel evidence • non-binding decision • both sides can accept • either side can ask for the case to go to an ombudsman (<10% do)

  15. review by ombudsman (internal appeal) • request by either side • additional evidence/arguments • possible hearing (rare) • final decision • if consumer accepts, both sides bound • otherwise, neither is bound

  16. basis of decision • law requires us to decide what is ‘fair and reasonable in the circumstances’ • rules require us to take account of: - relevant law - regulators’ rules and guidance - industry codes - good industry practice

  17. redress we can require the provider to: • pay compensation up to €150,000 * • pay interest • pay costs (rare) * we can make a non-binding recommendation for more

  18. alternatively, or additionally we can direct the provider to take appropriate action in relation to the complainant – for example: • put something right • reconsider an application or claim • apologise

  19. 4,230 motor 3,734 life 1,951 buildings 1,832 loan protection 1,670 travel 1,238 contents 891 income protection 713 extended warranty 680 critical illness 520 commercial 445 legal expenses 388 medical 273 pets 202 breakdown 177 personal accident 77 caravan insurance cases: year to 31 March 2007

  20. www.financial-ombudsman.org.uk independent external review by Lord Hunt of Wirral www.financial-ombudsman.org.uk/accessibility/polish/ twoje_zazalenie_a_rzecznik_praw_obywatelskich.htm

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