What happens when the Financial Ombudsmen side with you

finchy_2020

Hi all,

Wasn't sure what category to post this so I'll try and keep this short...

In October last yearI had to spend £4500 fixing my car (crankshaft had snapped one morning when I turned the car on) which I believed should be covered under warranty but the warranty company rejected my claim based on an independent engineers inspection (which lasted about 5 minutes and was a different outcome to the garages assessment). My terms and conditions cover sudden and unforeseen mechanical failure, including the crankshaft, but the independent engineer said it MAY have oil starvation that caused it to break which I argued was not a valid reason to reject my claim and should still fall under unforeseen mechanical failure - the garage also said they didn't see any oil blockages and also advised cars of my year and spec have sensors which notify you of any oil pressure / problems.

I went to the FO and they ended up siding with me and advised the warranty company to reimburse all costs I had to pay to get my car fixed. 

My question is how often do companies accept the FO's outcome and actually reimburse and now that they have sided with me are they required to accept the outcome? This is just a case handlers outcome and hasn't been escalated any further.

Thanks all!

bris

Their decision is final and legally binding.

If you paid by card sent the decition to the card company. for a chargeback. a CC for S75 which would be paid immediatly.

If any other way you need to wait 28 days then after that the court will give you a default win which you can also claim costs for. 

TrickyDicky101

bris said:

Their decision is final and legally binding.

If you paid by card sent the decition to the card company. for a chargeback. a CC for S75 which would be paid immediatly.

There's no indication there's any problem with the repair (other than the poor OP having to fork out for it of course) so why would the card company refund?  OP has no recourse against however she paid in my opinion.

finchy_2020

bris said:

Their decision is final and legally binding.

If you paid by card sent the decition to the card company. for a chargeback. a CC for S75 which would be paid immediatly.

If any other way you need to wait 28 days then after that the court will give you a default win which you can also claim costs for. 

I had to pay for the costs myself directly to the garage, so I can't exactly do a chargeback on a massive insurance / warranty company.

However like I said the FO have now made their outcome and it is for me to be refunded... so I guess I'll expect a cheque?

finchy_2020

TrickyDicky101 said:

bris said:

Their decision is final and legally binding.

If you paid by card sent the decition to the card company. for a chargeback. a CC for S75 which would be paid immediatly.

There's no indication there's any problem with the repair (other than the poor OP having to fork out for it of course) so why would the card company refund?  OP has no recourse against however she paid in my opinion.

Yes, exactly. I can't go via the card company but if the FO have sided with me which I quote below...

"On reading all the evidence and arguments by both parties. I’m upholding this complaint.

I don’t think B have acted fairly by declining C’s claim. And I think B should reimburse C

the costs he paid for the repair. C has provided an invoice for the repairs (attached)

which is a total of £4,498.10. I’ve explained my key reasoning below..."

finchy_2020

"B declined C’s claim as they said the engineer report states the failure, the broken

crankshaft, was due to lack of lubricant and therefore is not a sudden mechanical

failure. And C’s policy covers his vehicle for the ‘sudden and unforeseen mechanical

or electrical breakdown’ of covered component’s. So, isn’t covered.

 However, the report states the ‘vehicle suddenly cut out’ and that the ‘crankshaft has

snapped’. Which leads to me to support it being a sudden and unforeseen event.

 I appreciate what the engineer has said about the failure due to ‘lack of lubricant’. But

the report states this ‘may’ have caused oil starvation. Also, the repairing garage has

explained the vehicle has a full-service history which involves the oil in the engine

being replenished. And that the particular vehicle has sensors in them to advise of oil

engine problems which wasn’t apparent at the time of the incident.

 Based on the information provided, I think the failure was more likely to have been

because of a ‘sudden and unforeseen mechanical or electrical breakdown’. I think B

should’ve covered the claim and should reimburse C the cost of the repair."

TSx

bris said:

Their decision is final and legally binding.

If you paid by card sent the decition to the card company. for a chargeback. a CC for S75 which would be paid immediatly.

If any other way you need to wait 28 days then after that the court will give you a default win which you can also claim costs for. 

A case handler decision is only final if either accepted by the business and consumer, or if made by an ombudsman. If the warranty company dispute the decision then it will be considered a second time by an ombudsman (I have just been through this 18 month process with a bank over £35 - and eventually won).

If agreed the funds will usually be paid by bank transfer or cheque and you'd expect it to be done within a reasonable timescale (28 days or so)

finchy_2020

TSx said:

bris said:

Their decision is final and legally binding.

If you paid by card sent the decition to the card company. for a chargeback. a CC for S75 which would be paid immediatly.

If any other way you need to wait 28 days then after that the court will give you a default win which you can also claim costs for. 

A case handler decision is only final if either accepted by the business and consumer, or if made by an ombudsman. If the warranty company dispute the decision then it will be considered a second time by an ombudsman (I have just been through this 18 month process with a bank over £35 - and eventually won).

If agreed the funds will usually be paid by bank transfer or cheque and you'd expect it to be done within a reasonable timescale (28 days or so)

Thanks for this info. Obviously it’s all completely unbiased and has to be fair so I’m hoping if they dispute it and it goes to the Ombudsman their outcome will be similar to the one I have now. 

Sandtree

bris said:

Their decision is final and legally binding.

Not exactly...

When you first raise a complaint to the Financial Ombudsman you will get a decision from an Adjudicator or Investigator, that decision is not legally binding on either party and both parties will be asked if they accept the decision. If they do then the file is closed and the financial company has to do whatever was agreed.

However at this stage the financial company can reject the decision (or the customer) at which point it goes back into a new queue for the case to be reviewed by an ombudsman at The Ombudsman. Once this person has made their decision then only the customer is given the choice if they accept or reject. If they accept then. and only then, does the decision become binding on the financial institute.  If the customer rejects the decision then nothing is binding, the process is exhausted and the only option is the courts.

born_again

finchy_2020 said:

Hi all,

Wasn't sure what category to post this so I'll try and keep this short...

In October last yearI had to spend £4500 fixing my car (crankshaft had snapped one morning when I turned the car on) which I believed should be covered under warranty but the warranty company rejected my claim based on an independent engineers inspection (which lasted about 5 minutes and was a different outcome to the garages assessment). My terms and conditions cover sudden and unforeseen mechanical failure, including the crankshaft, but the independent engineer said it MAY have oil starvation that caused it to break which I argued was not a valid reason to reject my claim and should still fall under unforeseen mechanical failure - the garage also said they didn't see any oil blockages and also advised cars of my year and spec have sensors which notify you of any oil pressure / problems.

I went to the FO and they ended up siding with me and advised the warranty company to reimburse all costs I had to pay to get my car fixed. 

My question is how often do companies accept the FO's outcome and actually reimburse and now that they have sided with me are they required to accept the outcome? This is just a case handlers outcome and hasn't been escalated any further.

Thanks all!

So who was the complaint to FOS about?

bris

Financial ombudsman decision is legally binding, It can be appealed by the losing party but if there is no appeal or it losses it a legally binding decision.

The OP clearly states the Finantial Ombudsman has made a decision in their favour so we have to assume all arguments have been exhausted and thats the basis of this thread. Are you saying it's not legally binding and can be ignored if you don't agree with it? Of course they can refuse to pay but that doesn't mean it's unenforceable.

The chargeback or S75 claim should work, especially S75 as they are equally liable. as the OP can prove the FOS have sided with them. If that fails but why should it, then this is what the law says regaring the courts

Fortunately, once the FOS have made their decision, the court need not go into the merits of the case, as the FOS will have already made a determination on the facts of the case. This is provided for in paragraph 16 of Schedule 17 FSMA, which ensures that a court can order that a FOS decision is then awarded as if it were an order of the court.