Are You Happy With The Financial Ombudsman Service?

Crabman

I've been concerned to discover that the Financial Ombudsman Service (FOS) appears to side with the financial institution to the detriment of the consumer.

In my limited experience, when they're at the stage of liaising between the consumer and the financial institution, they seem to accept what the financial institution tells them whilst demanding high burdens of proof for evidence supplied by the consumer whilst insinuating that the consumer is wrong.

Whilst the financial institution is provided with everything the consumer sends to the FOS, the consumer is not normally provided with any information sent from the financial institution to the FOS. This does not appear to be fair or transparent.

One issue is their complaints process (i.e. complaining about the FOS). They say to raise the issue with the "team leader" in the first instance yet nowhere do they state in their correspondence who the "team leader" is.

I was wondering whether anyone else has had a complaint referred to the FOS and whether they felt it was dealt with fairly?

InsideInsurance

The quality of service from the FOS I think is very variable, I've had three complaints to them of which two they upheld and one they rejected and its needless to say I think they made two good decisions and one bad.

If I switch hats and come at this from my professional life I can see a fair number of cases where they've given very odd decision which very wrongly go against the insurer (eg 50% on non-matching set cover). They also have inconsistency/ changed their mind over time (eg supplier discounts werent allowed against cash settlements and now they are)

Your statement clearly isnt 100% true as Direct Line Group (or RBS Insurance as I believe it was still at the time) were fined by the FOS for doctoring information that they provided to them as part of audits etc.

It is hard to get a 100% independent view and ultimately a public or quasi public organisation is almost never going to have the best/ brightest staff available as private companies will always be able/ willing to pay more.

Other than the speed issue I think on the balance of it their decisions are generally right but that isnt to say 100% are correct (inc mine that was declined )

quaybab

FOS deal with your financial complaint how they want, decide themselves what the issue is, include whatever evidence they wish, without reference to laws/T&C's and determine the outcome on their definition of fair and reasonable which can vary not only across FOS staff but the same adjudicator/ombudsman.
This inconsistency (mistake /error/incompetence/time pressure) is put down to all complaints being different and unique - even identical ones.

I think the problem ultimately is bad top management at the FOS who dictate to staff that no morals is right becuase your being paid a salary.

I would prefer the operational method CISAS use for a dispute resolution services. The FOS & energy ombudsman should really be put out to tender.

The OP needs to title search of forums for FOS or Ombudsman to get answers.

dacouch

InsideInsurance wrote: »

The quality of service from the FOS I think is very variable, I've had three complaints to them of which two they upheld and one they rejected and its needless to say I think they made two good decisions and one bad.

If I switch hats and come at this from my professional life I can see a fair number of cases where they've given very odd decision which very wrongly go against the insurer (eg 50% on non-matching set cover). They also have inconsistency/ changed their mind over time (eg supplier discounts werent allowed against cash settlements and now they are)

Your statement clearly isnt 100% true as Direct Line Group (or RBS Insurance as I believe it was still at the time) were fined by the FOS for doctoring information that they provided to them as part of audits etc.

It is hard to get a 100% independent view and ultimately a public or quasi public organisation is almost never going to have the best/ brightest staff available as private companies will always be able/ willing to pay more.

Other than the speed issue I think on the balance of it their decisions are generally right but that isnt to say 100% are correct (inc mine that was declined )

DL were fined by the FSA due to doctoring data on audits re complaints

rs65

Crabman wrote: »

I've been concerned to discover that the Financial Ombudsman Service (FOS) appears to side with the financial institution to the detriment of the consumer.

Where did you discover this?

From what I can see, the last annual review reported 223,229 cases reviewed and compensation for consumers in 49% of the cases.

bod1467

Does that mean 51% were found in favour of the financial institutions? So Crabman's statement was still true (albeit marginally)?

InsideInsurance

bod1467 wrote: »

Does that mean 51% were found in favour of the financial institutions? So Crabman's statement was still true (albeit marginally)?

If financial services companies are doing what they should be then the FOS should be siding with them more often than not. The FOS is supposed to be independent and is not supposed to simply side with the consumer.

You will always get spurious complaints - remember we had two FOS complaints about our choice of hold music - and so even the perfect company will have some complaints escalated to the FOS