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independent external reviewby Lord Hunt of Wirral
UK Financial Ombudsman Service
David Thomascorporate director and principal ombudsman
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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
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characteristics
complain to provider first
free to consumer
flexible and informal processes
mediation or investigation and decision
specialist knowledge
encouraging complaint resolution / prevention
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other financial ombudsmen followed
banks
building societies (mutual mortgage banks)
investment product providers
investment intermediaries
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Financial Services Authority (the regulator)
Financial Ombudsman Service (resolves on unresolved disputes)
Financial Services Compensation Scheme
Financial Services and Markets Act 2000
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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
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complainants covered
individual
business (< €1.5 million turnover)
from UK and world-wide
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any complaint not resolved by close of the following business day
prompt written acknowledgement to consumer
within 8 weeks: ‘final response’ with details of ombudsman
what the rules require providers to do
keep consumer informed
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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
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totalenquiries (627,814)
enquiries converted to cases (94,392)
written enquiries (286,359)
phone enquiries (341, 455)
customer contact division
to casework
figures are for ALL financial products in year ended 31 March 2007
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casework division
final decision by ombudsman
early termination by adjudicator
case
mediation by adjudicator
non-binding decision by adjudicator
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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]
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mediation by adjudicator
evaluative mediation
by agreement
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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)
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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
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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
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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
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alternatively, or additionally
we can direct the provider to takeappropriate action in relation to thecomplainant – for example:
put something right reconsider an application or claim apologise
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insurance cases: year to 31 March 2007
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
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independent external reviewby Lord Hunt of Wirral
www.financial-ombudsman.org.uk
www.financial-ombudsman.org.uk/accessibility/polish/twoje_zazalenie_a_rzecznik_praw_obywatelskich.htm