FOS has been receiving large numbers of cases where situations have escalated because firms have been applying rules and procedures too rigidly, the ombudsman has claimed.
This has been a particular problem in cases involving vulnerable consumers, Fos added.
In the latest edition of Ombudsman News, the service said: “Unfortunately, we often find situations have escalated – or deteriorated – because the business involved has rigidly applied rules and procedures, or has not realised the extent of their customer’s vulnerability.
“Where a vulnerable customer has proactively approached a business for help, this can be particularly upsetting.”
Fos warned that people can become vulnerable for many reasons, including age, physical or mental health, caring responsibilities, as well as life-changing events, such as redundancy, relationship breakdown or bereavement.
Adviser view
Jason Witcombe, director of London-based Evolve Financial Planning, said: “We have a register of clients we deem vulnerable. The problem is where there is not a face-to-face relationship or you have an unscrupulous person dealing with clients.”
