13. Consumer Complaints

Question 1

What is DISP?

Answer 1

Dispute Resolution: Complaints Sourcebook

Question 2

What are the outcomes of thorough complaints procedures?

Answer 2

• Limit customer dissatisfaction
• Avoid exposure to error and omission claims
• Identify problems
• Improve standards

Question 3

What is the definition of a complaint?

Answer 3

Any oral or written expression of dissatisfaction, justified or not, by or on behalf of person about provision or failure to provide financial service, which alleges complainant has suffered financial loss, material stress or inconvenience

Question 4

Who is an eligible complainant?

Answer 4

• Consumer
• Micro enterprise <10 employees and turnover no more than €2m
• Charity annual income <£6.5m
• Trustee of trust net asset value < £5m
• Buy to let consumer
• Small business annual turnover <£6.5m and fewer 50 employees
• Guarantor

Question 5

How should complaints be recorded?

Answer 5

Files retained for at least 3 years from date of complaint
Keep log of eligible complainants

Question 6

What are the time limits for a complaint?

Answer 6

Must be acknowledged promptly
Resolved within 3 business day issue SRC
Within 8 weeks issue
- Final response
- Written response why unable to issue final response

Question 7

What is the financial ombudsman service?

Answer 7

Independent body, membership is compulsory
Ensures all possible steps have been taken by insurer if still unresolved will step in

Question 8

What are the maximum awards from FOS?

Answer 8

• £355K occur on or after 1st Apr 2020
• £350K occur on or after 1st Apr 2019 but referred 1st Apr 2019-31st Mar 2020
  -£160K anything else

Question 9

What is the Financial Services Compensation Scheme?

Answer 9

UKs compensation fund of last resort for customers of deposit taking companies and investment firms
Funded by levy on authorised firms

Question 10

What does the FSCS cover?

Answer 10

Claims against firms where unable to pay (usually insolvent or gone out of business)
Cover compulsory, general and life insurance

Question 11

What policies get 100% protection from FSCS?

Answer 11

Compulsory, PI, long term and certain claims for injury and sickness

Question 12

What policies get 90% protection from FSCS?

Answer 12

Other policies included general insurance advice and arranging