Forum Home» Loans

Financial Ombudsman decision & Small Claims court

New Post Advanced Search
Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.

Financial Ombudsman decision & Small Claims court

7 replies 303 views
OABOAB Forumite
23 posts
Ninth Anniversary 10 Posts Combo Breaker
Yesterday, I received a final decision from the Financial Ombudsman in that they have upheld my complaint about a short term loan I had out. Whilst I was happy that the complaint was upheld, I was disappointed with the compensation they offered. 

Basically, in 2019 the company took a double payment from my card which led to a whole host of problems. Along with the double payment they took, they also decided to make an admin error which was to add the payment I made onto my loan amount. Meaning my loan balance got bigger. It wasn't a huge amount, but it was the start of the whole complaint. Despite it being blatantly obvious that there was an error, they never resolved it. I got their final response in February saying there wasn't any issues. Obviously, I have taken this to the FO and they have yesterday ruled in my favour. But awarded very little compensation. The impact this has had on me has been huge The error was simple and yet they still couldn't fix it. It has been a year of it and the amount of compensation doesn't really compensate me or punish them enough.

Legally, I don't think they are allowed to add the amount on the loan balance and I want to take this further. But what would the small claims court say? Is it worth it? Would I be able to claim something more significant?

Any help would be hugely appreciated. Thank You. 


Replies

  • zx81zx81 Forumite
    30.5K posts
    Tenth Anniversary 10,000 Posts Photogenic Name Dropper
    ✭✭✭✭✭
    If FOS haven't awarded any further compensation, then a court almost certainly wouldn't.

    Compensation is there to rectify your losses, not for punishment.
  • OABOAB Forumite
    23 posts
    Ninth Anniversary 10 Posts Combo Breaker
    zx81 said:
    If FOS haven't awarded any further compensation, then a court almost certainly wouldn't.

    Compensation is there to rectify your losses, not for punishment.
    OK - But compensation can be awarded for many other things, such as damages. The small claim court is there to look at legalaties of it all too, they still broke their contract by adding to the loan balance?
  • zx81zx81 Forumite
    30.5K posts
    Tenth Anniversary 10,000 Posts Photogenic Name Dropper
    ✭✭✭✭✭
    A balance can increase for many reasons. In this case it was an error.

    It's nothing that a court is going to take seriously.
  • sourcratessourcrates Forumite, Board Guide
    22.1K posts
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    Hi,
    You say "The impact this has had on me has been huge".
    In what way has it been huge ?
    Companies make mistakes, it may seem obvious to you or I what has gone wrong, but they seem oblivious to it, so yes its very annoying having to deal with such matters, but apart from that, what has been the impact ?
    We have just been through the worst few months in recent history, with a global pandemic, companies have been short staffed, closed, or on furlough.
    The FOS usually award compensation for actual loss, and/or for discretionary loss, such as a goodwill gesture, the fact a double payment was taken was most likely down to a computer glitch, its not the worst example of bad customer service i`ve seen, i`d say £50-£100 quid would be about right in such cases.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    "I don`t trust Bankers, I don`t trust Banks, and I don`t trust you.........Private Frazer".
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • macmanmacman Forumite
    46.9K posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    What are your actual quantifiable losses, and how much do you believe you are owed in compo, beyond the award already made?
    No free lunch, and no free laptop ;)
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • brisbris Forumite
    9.5K posts
    Tenth Anniversary 1,000 Posts Name Dropper
    ✭✭✭✭
    Small claims court deals with losses not compensation.

    This would need to be held in the civil courts but legal fees are a huge factor in the civil courts where the small claims court legal fees are capped at an affordable rate if you lose.
  • SandtreeSandtree Forumite
    2.4K posts
    1,000 Posts First Anniversary Name Dropper
    ✭✭✭✭
    If this is the first decision from the FOS then it has come from an adjudicator and you are entitled to reject their decision and request that the case be reviewed by an ombudsman (as in a higher grade member of staff); the company you complained about is also entitled to do this as its only ombudsman decisions that are binding on them.

    For an upheld complaint there is likely to be two elements to the matter, first is financial compensation for your actual losses and this is generally straight forward as you quantify it with statements showing fees added etc (this is the special damages) and then a second element which is purely to cover the inconvenience/distress etc (this is the general damages). Which of the two elements are you unhappy with?

    The ombudsman is much more generous on general damages than any court would be
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support