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Financial complaints handling clean-up ordered by FSA
Originally posted by 5corpio
New rules to ensure customer complaints are dealt with fairly and promptly have been annonnced by the City watchdog.
The Financial Services Authority (FSA) said that "inappropriate use" of the current system - which requires two letters of complaint from customers - led to the planned changes. New rules will also increase the amount that can be awarded to mistreated customers by the independent ombudsman. This will rise from a maximum of £100,000 to £150,000.
Two stages
The current system means that financial services companies have two opportunities to respond to complaints from customers before it goes on to the next stage.
The FSA said that the first response to a complaint was often "poorly drafted" and could put the customer off continuing with a complaint, even if it was justified.
Under the new rules, which will come into effect in July 2012, the first response from a company will be the final response.
Sheila Nicoll Financial Services Authority:
.
In addition, from January 2012, the Ombudsman will be able to award compensation of up to £150,000 if they find in favour of the customer.
This is the first time the limit has been raised since the maximum of £100,000 was set in the 1980s.
A spokeswoman for the service said that 300 cases it dealt with last year - typically involving medical claims, life policies or buildings destroyed by fire - would have merited compensation of more than.....Read more HERE
The Financial Services Authority (FSA) said that "inappropriate use" of the current system - which requires two letters of complaint from customers - led to the planned changes. New rules will also increase the amount that can be awarded to mistreated customers by the independent ombudsman. This will rise from a maximum of £100,000 to £150,000.
Two stages
The current system means that financial services companies have two opportunities to respond to complaints from customers before it goes on to the next stage.
The FSA said that the first response to a complaint was often "poorly drafted" and could put the customer off continuing with a complaint, even if it was justified.
Under the new rules, which will come into effect in July 2012, the first response from a company will be the final response.
Sheila Nicoll Financial Services Authority:
.
In addition, from January 2012, the Ombudsman will be able to award compensation of up to £150,000 if they find in favour of the customer.
This is the first time the limit has been raised since the maximum of £100,000 was set in the 1980s.
A spokeswoman for the service said that 300 cases it dealt with last year - typically involving medical claims, life policies or buildings destroyed by fire - would have merited compensation of more than.....Read more HERE