The role of the Financial Ombudsman Service

The Financial Ombudsman Service plays an important role in the protection of the rights of consumers. Along with the Financial Services Authority, the Ombudsman has been pivotal in securing court backing for the rights of consumers in the PPI mis-selling case, and provides a point of last-recourse for consumers who feel aggrieved after their dealings with a bank or financial institution. Given the extent of the PPI mis-selling affair, the Ombudsman has been inundated with new claims, and is consistently swamped every week with new complaints from consumers unsatisfied with the way they have been treated by their lenders.

For consumers, the Ombudsman can be a particularly strong ally in counteracting mistreatment from lenders, but they shouldn’t be thought of as a regulator or financial services police force. The role of the Ombudsman lies in investigating complaints and resolving disputes between consumers and lenders, and there is a definitive process through which consumers must go before they can invoke assistance from the Ombudsman.

The starting point for any PPI claim has to be a complaint, made directly to the institution concerned. This must be submitted to the institution with an 8 week time period in which the institution should respond, after which point the Ombudsman can look into your case if you haven’t yet achieved a satisfactory resolution. However, it is worthwhile pursuing your compensation claim in the first instance before invoking threats of the Ombudsman or the courts, in order to give yourself the best chance of an amicable resolution in your favour.

If the Ombudsman finds in favour of you, the consumer, you can choose to accept the decision, which will have the effect of giving legal force to the Ombudsman’s ruling. However, should you be unsatisfied, you will still be able to progress with your action through the courts as before. While this appears a win/win, it is arguably much more efficient to pursue the complaint through direct channels firstly in order to save on the hassle and timescale of more indirect complaint resolution.

If you have been affected by the PPI mis-selling scandal, or you want to find out whether you have a claim, get in touch with UK PPI Claims now – 0845 475 0505 or complete our simple online claim form.