How Incompetent Are the Financial Ombudsman Service?

stereo_mike

As I'm sure many people will agree, the Financial Ombudsman Service provide possibly one of the worst and extremely biased services for what is meant to be an independent organisation.

I'm hoping that highlighting the issues with the service, the FOS and MSE might actually take notice and do something about their appalling service.

I've illustrated below just some of the many issues that I as an individual have experienced and proven stories of how the Financial Ombudsman Service have behaved.

This Forum discussion is for other people to list their horror stories in relation to the "service" received from the FOS.

Issues experienced: -

The FOS have confirmed on a recorded phone line that they do not pay any attention to the rules set out in MCOB and ICOB. They have also stated that they reach a decision on what they believe to be the most appropriate regulation, not what was actually applicable at the time.

The FOS in a rare instance when they up held a claim, asked for the person’s dead wife to sign the offer of acceptance even though they knew and had quoted in their outcome letter that MRS was deceased. Even after complaining about the appalling oversight by the FOS adjudicator, the FOS could not even be bothered to investigate the matter.

The FOS have confirmed in writing that their adjudicators do not investigate complaints independently, and the only way a complaint will be considered independently is for the claim to be submitted to an Ombudsman. Although firms have known this fact for years, it is good to finally have written confirmation from the FOS that this is correct.

Letters sent to another persons address in relation to my claim, when a complaint was investigated about this, according to the FOS this was my fault even though the adjudicator had confirmed receipt of my new address.

An Ombudsman sent the exact same letter of outcome in relation to a complaint that the adjudicator had sent 1 day after the final outcome had been issued by the Adjudicator. This was of particular amazement as we did not even send a response until the same day as the Ombudsman had issued their reply.

If you have other stories please add to this thread, and lets see if people power can actually do some good against the FOS.

Wutang_2

Have you personally had these experiences?

stereo_mike

I have directly experienced 2 of the examples shown, the others are cases which I have helped people progress.

InsideInsurance

I fear this will ultimately become a bit of "the grass is always greener on the other side".

Having sat on both sides of the fence, defending complaints for insurers and making my own complaints about financial services companies I would say that I dont hold the FOS in the greatest regards for a number of reasons but if they are biased then they are biased towards the consumer.

For my personal complaints, the two settled were both upheld in my favour and reasonable compensation awarded. My main complaint would be the timescales for handling. My outstanding complaint was messed up a little in that a new case number was assigned to an existing case for reasons unknown but it was resolved and it slotted into the queue where it should have been if the error hadnt been made.

The last data I saw the ombudsman ruled in favour of the consumer 57% of the time (though the rates vary significantly depending on the product). Having seen some of the really daft complaints that come through the ombudsman that are always going to be rejected its "artificially" low figure (I remember receiving 3 FOS complaints about the choice of hold music - not the length of time on hold but the actual song itself)

P-G_2

For an example of what can happen when you go to FOS, take a look at this case study
http://www.financial-ombudsman-problems.co.uk/full.htm

For more details about FOS problems see
http://www.financial-ombudsman-problems.co.uk

For a QC's thoughts of FOS see
http://www.ifadu.co.uk/downloads/PNBA - Ombudsmen and the Rule of Law.doc (you may have to download the .doc to read this, but its worth it)

For another MSE forum on FOS, with the author taking FOS to Judicial Review next week see
https://forums.moneysavingexpert.com/discussion/3893163

Happy reading...the FOS is so powerful and has so few external controls and audits that it can do pretty well anything it wants to regarding decisions, all it has to do is show that what it says is "fair and reasonable"

ginimasters

Dear Stereo-mike

I have a judicial review on 9th May to challenge my ombdudsman's decision. Please take a look at my article if you have time to read. I would appreciate your comments. I have also sent you a personal email.

Kind regards

ginimasters

Dear Stereo-Mike

It would be useful to me for my JR if I could have a copy of the letter from the FOS confirming as you say "in writing that that their adjudicators do not investigate complaints independently..." and any other documentation you have which you feel will assist.

thank you in advance

gini

cds333

Understand the Audit report in January 2012 was very critical of the FOS and the current government all looking to close it down.

My claimant experience of the FOS is it is not fit for purpose and flouts it's own rule book. :eek:

boneofo

You can only win a case at the Ombudsman when the company have screwed up really really obviously. As other posters state, the FOS judge cases on what is fair and reasonable and ignore laws etc. If you ask for too much comp at the start,
your on a loser.
You need to have won your case at the first stage (adjudication) as you will have close to zero making an Ombudsman see any different and before you know it, the process will have ended with no further redress.
The only possible leverage you can have when the adjudicator goes against you is pickup on failures by the FOS or errors.
The only way to crack the FOS system is for winners to make their final decisions public - the reverse is the situation presently with only the losers being vocal. Once we are able to weed out the service errors and inconsistencies, more leverage will be possible.

So in summary for new complaints - beware. You need careful management of your claim - be watchful of the information you give to the FOS (as they will use it against you), manage your adjudicator carefully, make sure you get a copy of the stuff sent by the company your complaining about as they will get all that you send to the FOS. Get a copy of all emails, voice mails / call notes made by the FOS on the case.
When the adjudicator cocks up or tells porkies, use the internal complaint process.

happy_bunny_2

From my experience, the abilities of adjudicators varies wildly. 2 similar cases, one gets 5K one gets £200. Sadly, the lower one was the first case resolved

graham1449

I utilized their service only to receive the same offer made by the company I was complaining about, plus I had an email during the ombudsman’s review to let me know they had lost some of my correspondence. I tried to complain about their service but it seems the ombudsman is exempt from any blame or responsibility.

I have the trail of email destruction if anyone would like some entertainment.