Compensation limit for financial complaints to increase to £350k - MSE News

Former_MSE_Naomi

Consumers will be able to be awarded up to £350,000 in compensation when they complain to the financial watchdog from next month - an increase from the current maximum of £150,000...

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'Compensation limit for financial complaints to increase to £350k'

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agrinnall

Not sure this is the right place for your post, I think the Banking board would be more appropriate.

Bermonia

Interesting point but could one not argue that compensation limit being increased is a form of consumer rights and as such the post is equally suited to being here.

Crabman

How about reforming the Financial Ombudsman Service so they are actually impartial? They are in no way compliant with the principle of natural justice.

As Channel 4 Dispatches demonstrated, they are not impartial and will side with the business (that fund the service via case fees).

Bermonia

Of course their well documented and accessible data confirms this does it?

I’m curious, who do you believe should pay the fee... keep in mind consumers certainly won’t want to pay for it... although may make them think twice about some of the more frivolous and vexatious complaints. Businesses are charged the same fee regardless of the outcome of the complaint.

agrinnall

Bermonia wrote: »

Interesting point but could one not argue that compensation limit being increased is a form of consumer rights and as such the post is equally suited to being here.

I've never seen a thread started on this board where the amount in question is more than £150,000. Such an amount is much more likely to be due to financial fraud.

Crabman

Bermonia wrote: »

Of course their well documented and accessible data confirms this does it?

Ask them to disclose the number of cases which went to trial and resulted in the opposite party winning.

Bermonia wrote: »

I’m curious, who do you believe should pay the fee... keep in mind consumers certainly won’t want to pay for it... although may make them think twice about some of the more frivolous and vexatious complaints. Businesses are charged the same fee regardless of the outcome of the complaint.

Interesting then that cases reach the ombudsman where quantum is in the order of £10-£30. Why pay a case fee of several hundred pounds rather than resolve such cases with 'goodwill gestures', vexatious/frivolous cases excepted?

And yet businesses still get away with not telling consumers about the FOS in the first place. The FOS will not take any action against a business even where they refused to respond to the consumer and where their auto-response made no reference to the FOS.

Bermonia

I’m curious as to why you think they would hold information of a process that they are not party to.

The FOS are not the regulator and as such have no right or power to take action against a firm. There are merely there to arbitrate disputes.

If you are aware of firms not responding or providing adequate FOS rights in their correspondence then this is a matter you should bring to the FCA.

Crabman

Bermonia wrote: »

I’m curious as to why you think they would hold information of a process that they are not party to.

If they were serious about being impartial towards consumers, they would take an interest in cases which progress to court. Of course, they don't do this because they are not interested in anything other than placating the hand that feeds them.

Bermonia wrote: »

If you are aware of firms not responding or providing adequate FOS rights in their correspondence then this is a matter you should bring to the FCA.

I've seen cases where the FOS did not award damages or bother to inform the FCA that the firm had not provided the customer with information on the FOS and not acted fairly in dealing with the complaint - issues that the FOS agreed with in their findings.

Upon contacting the FCA it was made clear that such referrals should come from the FOS. No details were taken by the FCA.