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[MSE Natasha]

Updated 9 September '08

What's this about?

Buried deep inside its compensation guidelines, the Financial Ombudsman has rules about compensation, here's the key section with the important bits in bold...

"In awarding compensation, we sometimes make allowance for the time the consumer needed to spend to put things right – though not usually for the consumer’s time in dealing with us.

This will normally be at a modest rate (around £50 to £100 a day, and not more than £10 per hour). However, a higher amount may be appropriate in the case of business complaints – but not usually as much as the business’s charge-out rate."

Source: The Distress & Inconvenience Guidelines from the Ombudsman

This is great news for anyone who's experienced unfair problems (from inconvenience to issues that cause distress) due to their bank or finance company, as it officially recognises that time spent to rectify the situation is worth something.

What does this mean?

The statement's a fantastic weapon to mention when making a complaint to a bank or insurer who's caused unnecessary hassles.

It officially only applies for complaints resolved by the ombudsman. Yet when dealing with a bank or insurer causing unfair and unnecessary hassle, use it as a negotiation point to hurry it; tell it the rules and ask for the cash on top.

Ensure you highlight it in your complaint and if you've a case, ask it for this cash on top of any settlement it offers.

Please discuss and feedback and add your experiences of trying this by clicking reply

Related Guides: Consumer Rights, What Shops Don't Want Us To Know

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[nothingwitty]

I have been trying to reclaim missold PPI from Bank of Scotland for over a year - they automatically added it to a loan. They have set obstacle after obstacle - not responding to my initial complaint, not returning phone calls, not entering a defence, then requesting default judgement be set aside, and just this week failing to respond to an SAR within the 40 days allowed (so I can't prepare for the set aside hearing) and I have had to write letter after letter and make countless phone calls. This little bit of info regarding the fact that I may be entitled to compensation for the hour after hour I have spent pursuing this claim may just be the bargaining tool I need. I wrote to them yesterday regarding their non-compliance over my Subject Access Request and just wish I had this bit of info at the time!! I'm going to save it for my next letter...

Hurrah, Hazzar and a ha-cha-cha-cha for Martin and the team!!!!

[cril]

I know this is slightly off topic but I've just spent hours on the phone to DVLA mostly listening to their options. When are we going to start getting an ombudsmen for sorting out problems with them and HMRC? They've cost me far more in time than any financial institution and are never wrong!!!

[fatboy88]

this will come in handy, as i am disputing with the bank regarding a mis-selling of a bank loan

[pkempc]

Hi Martin & team,

Thanks for that nugget of info. We have just submitted a complaint to the ombudsman about HFC bank.

We had to replace a couple of leather sofas after being flooded out last July and decided to go back to the original shop - Furniture Village, Abingdon and as before signed up to their 24 months 0% finance deal provided by HFC. We took delivery in January and HFC should have taken the first direct debit payment thereafter.

In February we started to receive very early morning phone calls from HFC operators from a foreign call centre with poor english saying we hadn't paid the monthly payment, 'fining' us £15 & then asking for our debit card number!
The operators were obviously reading from a script as our protestations of not the ones being at fault were just met with repeated demands for bank details!

It took 4 months and several letters to HFC to get a standard letter of apology stating that due to human error they had never set up the direct debit mandate properly - oh that's okay then!
They cancelled the £ 15 'fines' and sent a cheque for ........wait for it......... £ 10 as compensation!

Apart from the early morning aggressive telephone calls what really annoyed us was the damage HFC could do to our previously spotless credit score especially as we are looking to remortgage at the end of this year.

Needless to say we rejected their offer.We had to pay to check our individual credit files with the three credit reference agencies to ensure HFC hadn't added any 'black marks' for missed payments plus the costs of stationery and postage for all the letters = much more than £10!

We have recently had a letter back from the Ombudsman stating our case is being processed and we should hear back soon.

To be continued..............

[pixwix]

Even without this ruling there have been precedents that have made this a very handy strategy.

A few years ago my wife fell foul of one of the major mail order catalogue companies (about time there was a major enquiry into these organisations). Usual rubbish - demands for payments already made (and recorded), non-delivery of goods, delivery of unordered goods - the whole kit and caboodle of an incompetent and uncaring organisation. They continued to pursue us for money we simply didn't owe them - again all the usual stuff - promises that all had been sorted, followed by fresh demands a few days later. On one occasion, a telephone call to senior management produced an apology and a firm promise that all would be sorted - a week later we got a letter from bailiffs. My wife was almost afraid to open the mail.

I then sent them a bill for our time, postage, phone calls, and an estimated amount for the storage of unwanted goods - amounting to just over £500 - and warned that I would continue adding to it, and take it to an appropriate court if necessary. We didn't get the money, but the harassment stopped immediately (in fact they never contacted us again), which was the point of the exercise.

Even before this ruling, we already had rights to financial damages - the problem was enforcing them. This decision could make a real difference, and might make large organisations pull their socks up a bit.

[dmg24]

Originally Posted by pixwix

Even without this ruling there have been precedents that have made this a very handy strategy.

A few years ago my wife fell foul of one of the major mail order catalogue companies (about time there was a major enquiry into these organisations). Usual rubbish - demands for payments already made (and recorded), non-delivery of goods, delivery of unordered goods - the whole kit and caboodle of an incompetent and uncaring organisation. They continued to pursue us for money we simply didn't owe them - again all the usual stuff - promises that all had been sorted, followed by fresh demands a few days later. On one occasion, a telephone call to senior management produced an apology and a firm promise that all would be sorted - a week later we got a letter from bailiffs. My wife was almost afraid to open the mail.

I then sent them a bill for our time, postage, phone calls, and an estimated amount for the storage of unwanted goods - amounting to just over £500 - and warned that I would continue adding to it, and take it to an appropriate court if necessary. We didn't get the money, but the harassment stopped immediately (in fact they never contacted us again), which was the point of the exercise.

Even before this ruling, we already had rights to financial damages - the problem was enforcing them. This decision could make a real difference, and might make large organisations pull their socks up a bit.

You don't seem to have stated the precedent pixwix?

[Estereggeater]

Hi All,
Reading the catagories for compensation, I feel that I have let Lloyds TSB off lightly.
They said they were going to pay me back in December, they telephoned me three times asking for my account details promised me the money would be in my account.
I had to go to the Ombudsman wait eight months, more letters, detail my fanancial hardship situation. The ombudsman gets back to me suggesting £100 compensation for distress and inconvenience, which I except as being fair, but when I thought about it thought how stupid I was to say yes and not to ask for more not wanting to appear greedy.

Got the £100 a few weeks ago but still waiting for the remainder of the PPI, It's now six weeks later, I wish I knew about this before it would have given me more ammo.

Estereggeater

[megw3]

Yes, what about government departments - I wish to add the DWP to the list, having spent at least 50 hours sorting out my mum's claim for pension credit - in fact she didn't claim it, she was awarded it wrongly despite them having had full details of her circumstances at the time and continued to award it for 5 months (of course not regularly, they kept stopping it without notice, starting it again with backpay) - and now it has been withdrawn and they want the money back! It has involved telephone calls, letters, calculations, consultation with the CAB, letters to her MP.......and it still isn't resolved!

Meg

[Doublespresso]

Do youknow if I can use this against Local Authorities when successfully fighting wrongly issued Parking Tickets?

[dunstonh]

Originally Posted by Doublespresso

Do youknow if I can use this against Local Authorities when successfully fighting wrongly issued Parking Tickets?

The financial ombudsman service does not cover that.

[jools65]

This could come in very handy.

At the moment, i've got a missold PPI going with LLoyds, thats been passed to the financial ombudsman. Basically, i told Lloyds about an ongoing shoulder complaint because being self employed it was of great importance to be covered for injury and loss of employment.
I even ASKED if i would still be covered as the bank was refinancing a loan at their suggestion after £3500 went missing from my current account but when it was brought to the attention of the fraud squad via Lloyds, they rang me to tell me they would do me for fraud if one of the transactions i had picked came back as being a valid transaction that i had made.

It turns out with the PPI, that the seller didnt print off the right paperwork saying that any future problems with the shoulder would mean i wasnt covered at all. So in theory, according to LLoyds logic, i just signed on the dotted line, knowing full well i wouldnt be covered and paid an extra £6500 for the priviledge of them turning me down

Lloyds offered £1000 on a previous loans PPI that i didnt sign for but worded the letter so that if i accepted, i wouldnt be able to pursue the claim on the refinanced loan.

Meanwhile, back in feb, i had kept my branch up to date with what was happening and told the manager that the insurance had turned me down for a pre-existing condition. he said to get back to them as they would pay eventually and arranged for a £3500 overdraft for 3 months.
They didnt cough up and now that overdraft with added charges etc has risen to nearly £7000 in 6 months. I had to give up work and move house as it went with the job and i wasnt even covered for unemployment as it was classed as being put down to the shoulder injury why i had to leave self employment. I sarcastically asked if i could claim for athletes foot instead

The credit card insurance should cover me as it was taken out a year before i even went to the GP complaining of shoulder pain but since the end of feb, i have been given the wrong information that the loan insurer would provide the info needed from a central database (as everything i had was with Lloyds)and i only need send in the part needing my signature.

Since then, i have sent two of them in, had to ring the loan insurer to fax details over and the fax never reached its destination and get another sick note from my doctor which they lost.

Its still not settled and i am getting letters saying my cards been stopped and i have to cut it up and send it back, blah, blah.
The last letter with my signature needed (yet again) was sent via recorded delivery 3 weeks ago and i have still not heard anything.
I seem to be on the phone on a weekly basis chasing things up so i will use the above info and send them a letter charging them for my time and see whether that makes them shift up a gear!

[andyco]

Does anyone know if this can be used against the Student Loans Company? Seem to be spending ages writing letters to them about how money keeps being deducted from my wages even though I've paid off loan.

[Skieasy]

Your time's worth £10 an hour if your bank or finance company causes unfair problems

Worked for me! Was hassled by Egg over credit card details, which they eventually admitted as their error and paid up £35 without having to revert to the Financial Ombudsman.

[dunstonh]

Originally Posted by andyco

Does anyone know if this can be used against the Student Loans Company? Seem to be spending ages writing letters to them about how money keeps being deducted from my wages even though I've paid off loan.

The financial ombudsman service does not cover that.

[chris9104]

Does anyone know if something similar to this exists for the Ombudsman of Estate Agents, as I have spent a huge amount of time trying to sort out a problem with Hunters?

[YorkshireBoy]

Originally Posted by chris9104

Does anyone know if something similar to this exists for the Ombudsman of Estate Agents, as I have spent a huge amount of time trying to sort out a problem with Hunters?

The Ombudsman can make awards up to £25,000. He will do so if he is convinced that you have suffered:

• Actual, proven financial loss as a direct result of actions or inactions by the Agent. Please note the words “actual” and “proven”.
• And/or undue and avoidable stress and inconvenience – over and above what is a stressful and inconvenient process at the best of times.

http://www.oea.co.uk/make_complaint_sales.htm#ten

Google is your friend.

[MRSTITTLEMOUSE]

Originally Posted by Doublespresso

Do youknow if I can use this against Local Authorities when successfully fighting wrongly issued Parking Tickets?

'
I actually claimed for my time from Miller Homes when we had a lot of problems after buying from them in 2000.I claimed for 8.5 hours at a cost of £15 per hour of my time (explaining how it was used,writing complaints,time on the phone ect).I did this after the problem was resolved and listed it along with my other costs I was claiming for.They paid it,I must admit I was surprized as I had only put the charge down as I was so angry with them at the time.I'm now in the way of thinking that it's always worth asking,if you don't ask you don't get.

[abc123abc123]

I am currently going through a house insurance claim which started in June. It has been a real problem, leaving me to make complaints about shoddy workmanship (left a fire hazard etc) and me having to make numerous telephone calls, to the different companies that the insurance company has delegated to, to try to get things resolved- is this something which I could claim time for? This claim is still ongoing, trying to get a settlement figure to get work done.

Thanks

[mamamia30]

hello, my partner has a credit card with Barclays, and also banks with them. He owed £300 odd (total amount left to pay on the card) and his latest bill was for £18 only, but they decided to take out £125 from his bank account, without any notice!
I know they have rights to take funds from his account if he owes them money, but to take out that much, without notification doesn't sound right to me! Can anyone please tell me where i stand with this, and also if we have rights to complain as it left us short paying rent, and they would not explain anything to my partner on the phone and even put the phone down on him! (After waiting half an hour on hold to talk to this person!) thanks!