Q: How does the ombudsman decide on a complaint?
In 2010 the ombudsman service resolved half of all non-payment protection insurance complaints within three months – and three quarters within six months.
Complex investment complaints – and those requiring an ombudsman’s decision – can often take longer.
According to the ombudsman it depends on how long it takes the two sides to provide information, and the extent to which the two parties agree – or disagree – to any informal settlement we my suggest early on in the process.
How does the ombudsman decide on the amount of compensation?
Where the Financial Ombudsman Service upholds a complaint, its aim is to generally put the consumer in the position they would be in – financially – had the problem not occurred.
Additionally, the ombudsman service is able to award compensation for any non financial loss – such as distress and inconvenience – incurred by the consumer as a result of the error.
According to the ombudsman, generally these payments are modest – up to £300 – but will depend on the circumstances.
The Financial Ombudsman Service told businesses to pay compensation for distress and inconvenience in a quarter of the cases it upheld in 2010.
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