s75 escalation time scale - need for complaint

Streaky_Bacon

Hi,

I wondered if anybody close please advise on the time scale for escalation of a s75 claim, and whether a s75 claim can be escalated direct to the ombudsman, or whether a complaint is required.

I have had a couple of successful s75 claims over the past year using Resolver, however I have always doubted the information on the Resolver site, which says that a s.75 claim can be escalated to the ombudsman after 8 weeks.

I doubt this because I have read elsewhere that first you must complain about the s75 (either because it is refused, or delayed, or for some other reason) and then allow 8 weeks for the complaint to be resolved before that complaint can be escalated. However I can't find a definitive answer online.

So I'm hoping to get some advice on whether I am correct that a separate complaint is required, and also whether there are any rules on how long a bank would need to fail to respond to a s75 claim, or fail to deal with it, before a complaint could be raised.

Does anybody have any information on this, please?

[Deleted User]

You may as well wait for the s74 claim to be processed.  FOS can't make it go any faster and would actually slow down the process.

Also stop using Resolver, as that slows down the whole process.

Streaky_Bacon

Thanks.

Am I correct in thinking that you can't escalate a s75 claim to the ombudsman without making a complaint to the bank first?

Is there any guidance or precedent regarding how long a bank can take to process a claim before a complaint is made?

My experience with other claims is that the bank has dragged its feet for several weeks, made various excuses, and told me that there is no set time for a s75 claim, but when I have replied, saying that it cannot be an open ended process, and asked them when they expect to resolve the matter they have finally settled the claims.

I am now, however, in a situation where a different bank has not yet even acknowledged receipt of the claim. Of course, with the current situation, I would expect the process to take longer than normal, but it cannot be open ended, so would be good to know of any guidance/precedent.

[Deleted User]

There's no time limit, as cases may need a lot of investigation - so yes it can be open-ended.

You can go to FOS after 30 days but there's little point, other than to slow down the process.

Streaky_Bacon

Thanks. I had another look at the FOS site and the wording there seems to suggest that the s75 claim itself counts as a complaint, so no need to submit a separate one.

How to complain

Speak to your credit provider first - they'll be able to look into the issue and tell you if they can help. If you're unhappy with their response, or they don't respond, you can come to us with your complaint. 

Find out more about how to complain.

I agree that there is no specific time limit, just has there isn't a time limit for any debtor to respond to any demand, but my personal experience is that not pushing for a resolution deadline just results in the bank effectively ignoring the matter (which again is probably the position of most debtors). The key would seem to not allow it to be open ended.

If the bank engages, then at least it is possible to push for a resolution, but if they do not respond at all then at some point I will need to escalate. Right now I have no indication that there is even a process ongoing that I would be slowing down. I will probably wait 8 weeks, which would seem reasonable in the current situation.

born_again

Never heard a S75 claim being classed as a complaint. We certainly do not log them that way.

Streaky_Bacon

born_again said:

Never heard a S75 claim being classed as a complaint. We certainly do not log them that way.

If I write to the retailer because they have breached the contract, is that a claim or a complaint, or both? As the bank is jointly liable, is it a claim or a complaint, or both?

I don't think it really matters for my purposes. I just needed to know whether there was an extra step needed with the FOS.

born_again

When you raise a S75 claim it is not a complaint. It is a request to look at the situation. If it is not resolved to your satisfaction by the bank. Then you can raise a complaint.
They are not listed as a complaint until you complain to the bank. Complaining at the start will not get it dealt with any faster, in fact it can slow things down as you then have the complaints team looking at the complaint & S75 team looking at the claim. Complaint can not be resolved till S75 team have done their work.
Timescale wise a S75 usually take months, but a lot can depend on the amount. Have seen some take a year to resolve. It is very much like how long is a bit of string. There is no one size fits all as there can be a lot of work involved, especially when talking to retailers.

Streaky_Bacon

born_again said:

When you raise a S75 claim it is not a complaint. It is a request to look at the situation. If it is not resolved to your satisfaction by the bank. Then you can raise a complaint.
They are not listed as a complaint until you complain to the bank.

I don't think that the terminology really matters, but as you raise it, it would seem that you are using the layman's definition of "complaint", and I've no doubt you are right that the bank use the same terminology internally.

However, in legal terminology the word complaint is often used to describe what may more commonly be referred to as a claim, often in criminal but also in civil cases.

It should be remembered that, with a s75 claim, it is not simply a request to the bank to get involved. It is the beginning of bringing a legal claim against the bank, on the basis that they have the same liability as the retailer.

They are not an arbitrator in these matters, although they often couch their responses in terms that suggest they are. They are, in fact, a defendant to the claim. Although there is no s75 time frame, s75 makes the bank liable, and so places them in the place of a defendant.

I recently had a bank tell me that they could not process the claim, because the retailer had failed to respond to them, and so it would have to wait until they did. I responded, pointing out that the bank could not deny liability simply because the retailer wouldn't respond to them, and that they could not delay the process indefinitely. They settled a few days later, although it was for quite a small amount.

With regards to the FOS, it does not seem that a separate "complaint" is required and a failure to respond to the s75 would be sufficient to proceed to the FOS.

Unless there were very specific reasons for it, I would not find it acceptable for a bank to take an excessive amount of time. Complex legal claims can take years, of course, but there have to be valid reasons for it. If I were being chased as a defendant by my bank, I would be very surprised if they allowed me to delay for many months or years, without taking enforcement action against me, unless I could provide a very clear justification, and not simply because I said that I had not finished investigating.

I would not escalate to the FOS unless the bank became obstructive, or continued to fail to respond for an extended time. However, if I do I will be raising it direct to the FOS, rather than raising a complaint to the bank. How the FOS and the bank deal with it after that is up to them.

Tildaplum

1. put in your s75 claim and wait a reasonable time. Say 8-12 weeks but you might want to give them a bit more time at present. Obviously, chase every so often as required.

2. if the claim is rejected or you suspect the bank is deliberately dragging its metaphorical feet then put in a complaint to the bank.

3. once you get a deadlock letter, escalate to fos.

Streaky_Bacon

Thank you for the input.

I have yet to receive any communication from the bank regarding the s75, but I had also put in a charge back request, which has now been processed, with the temporary credit back on my card.

The merchant has stated that a refund is payable in my situation but that processing time are very long and that is the only reason that the refund is delayed. If they are being genuine, I would therefore expect that that they would not dispute the charge back.

My bank has advised that if there is a dispute they will be in contact with me within 90 days.