It is my understanding that (s)he is financed by contributions from banks, insurance companies and other financial institutions to act as an arbiter between consumers and the aforementioned institutions. I also believe his decisions are binding on those institutions.
If I'm correct then it probably works fairly and well for "one-off" complaints. However given the millions that are seeking to reclaim unfair penalty bank charges is the financial ombudsman in reality going to find in favour of the consumer given that the banks pay for him! Would it not be rather like turkeys voting for Christmas?
My daughter has been treated appallingly by her bank leaving me with the dilemma of whether to go to the small claims court or the financial ombudsman.
The small claims court will cost me money I don't have whereas I understand that the ombudsman is free to the consumer. Is that because the consumer never wins though?
The bank have obfuscated for so long that she has now got leave to go to the financial ombudsman should she so wish.
Has anybody done this?
I'm happy to discuss the morality or otherwise of reclaiming bank charges on another thread but would appreciate it if this thread confined itself to the merits of the ombudsman and small claims court please.
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Whisper me your email and I'll go through the current state of play re. bank charges.
Should've known! Hilarious.
I reckon she was originally due £590 made up of two separate claims of £270 and £320. The reason there are two claims is that the bank took so long to respond fully that they actually refunded the £10 data request fee!
She has so far received two "goodwill" payments of £50 and £160 which we have accepted on a without prejudice part payment basis. That still leaves £380 though.
She is a student who has incurred charges partly through her own fecklessness but also and mainly because the bank did not increase the overdraft year on year as was intimated when she opened the account.
What I'm really asking is whether the FO is in reality the lapdog of the financial institutions and is just there to give an illusion of accountability and redress for the consumer?
The vast majority of cases are resolved by mediation or an adjudication which is reached by a case-worker. Ombudsman's decisions account for less than 6% of our case closures (111,000 last year off the top of my head). An adjudication or mediation settlement is accompanied by an agreement to be signed by both parties. This can be rejected and a decision requested. An Ombudsman's decision is BINDING on the FIRM but NOT ON THE CONSUMER. The win/lose rates are about 50/50.
Bank Charges are a special case - basically, the banks are giving-in almost immediately at the initial mediation stage and settling (usually for the full amount). Don't expect any "distress and inconvenience" payout. They also have to pay a case fee whether they win or lose.
The FOS is a free service, and even if you don't get the answer you want out of them, you can still go to court.
Some advice which might be of help.
Best thing to do is close the existing account and open a new (basic bank account) with a different bank/building society,when you have done this then stop all standing orders and any other payments that were being paid in to the bank that you want to claim against.This can be done very quickly and easily.You should do this as it's not worth staying ANY LONGER with the existing bank as you're not satisfied.
The small claims court will cost £120.00.
The banks and the FO are both dealing with millions of claims,and this will take time, If you contact the FO they will probably assist you but it will take time, they will try and push your case forward.
If your daughter is having financial problems she could contact Consumer credit counselling service 0845 272 5400 this might help
TRY this and it might help go to
www.Debtwizard.com sign up and contact the owner MIKE THOMAS who will be glad to help
good luck.