Banking ombudsman - what happens?

angel.cake_2

What exactly does the ombudsman do to a bank if they have made an error? Is it really any threat to a bank for someone to make this complaint?

My complaint is about ongoing errors with Northern Rock mortgage account, hence the reason I have posted in here.

Thanks!

opinions4u

1) You need to exhaust Northern Rock's complaints process before you go to the FOS (or they need to fail to resolve your issue within 8 weeks).

2) If you go to the FOS it costs the bank around £500ish. So it is usually in their interests to resolve things before this stage.

3) The FOS is a slow process. Don't expect a speedy resolution.

4) Typically the FOS will rule in the favour of the bank in around 50% of cases. Victory for the consumer is not guaranteed.

dunstonh

What exactly does the ombudsman do to a bank if they have made an error?

Sometimes little or nothing because some errors are in evitable and mistakes happen. If the bank has sorted them reasonably they will accept what the bank has done. Other times, if the bank is being stubborn or incompetent then the FOS will tell them to sort it and can direct a payment to be made.

Is it really any threat to a bank for someone to make this complaint?

Depends on the complaint. The FSA review complaints at corporate level when they visit and look for trends and how complaints are being dealt with. If your problem is widespread then the FSA may choose to investigate.