Financial Services Ombudsman announces changes to handling of complaints

In its recent press release the Financial Services Ombudsman (FSO) has announced significant changes to how complaints are dealt with. The aim of these changes is to increase direct interaction with both consumers and providers to deliver a faster, more efficient and effective service that puts the needs of service users at its core. The FSO is seeking to “‘raise the bar’ on consumer protection and complaint handling and to address potential issues early on before they become systemic”.

The following are the key changes:-

• The introduction of a dedicated Dispute Resolution Service to resolve disputes at an early stage and with the minimum necessary formality.
• Dispute Resolution Officers will be assigned to complaints, whose role is to establish the essence of the complaint and seek to resolve it speedily and informally by facilitating a solution that both parties can accept.
• The role of a Dispute Resolution Officer is to facilitate a resolution, not to apportion blame or liability.
• Informal methods including mediation, both by telephone and through meetings, are now the first and preferred options for resolving complaints.
• Parties are strongly encouraged to engage in a meaningful manger in the informal process and to only rely on adjudication as a last resort.
• When early intervention does not resolve complaints, the FSO will use the powers available to him to investigate and adjudicate complaints.

In relation to the powers available, Ger Deering has commented that “I will not be found wanting in using these powers as they were intended to redress the balance between the consumers and financial service providers”.

For full details of the press release please click here.

Click here for the FSO’s guidance on making and handling complaints.

Author: Elaine Morrissey