4.4 The Complaints Handling Process

Question 1

Reasons why customers complain

Answer 1

Not being treated fairly
May have not read or understand the terms and conditions of a complex financial product
And they will complain when they discard discovered that the product is not what they thought

Question 2

Complaints procedures

Answer 2

Overseen by the country’s financial regulator

The FCA - is the regulator responsible for bank business conduct
They do not investigate individual complaints but sets out rules to ensure that complaints are dealt with fairly and consistently

Question 3

The procedure for customer complaints:

Answer 3

1. Contact the bank
2. Receive a response
3. Contact the FOS
4. Take the matter to court

Question 4

Contact the bank

Answer 4

The custom should get in touch with them and explain the problem
All authorised banks must have a process in place for resolving complaints

Question 5

Receive a response

Answer 5

Unless the bank resolves the complaint within three business days, it must reply in writing to confirm receipt of the complaint
They must inform the customer in writing within eight weeks of the outcome of the complaint

Question 6

Contact the Financial Ombudsman Service

Answer 6

If the customer is unhappy with the bank decision

The FOS - is free and independent service for settling dispute between financial services banks and their customers

They will ask the bank for their view and then decide whether or not to uphold their complaint
If they decide in the customers favour the bank must comply

Question 7

Take the matter to court

Answer 7

If the customer is unhappy with the decision of the FOS
They may be able to take the case to court

Question 8

Most common complaints (FOS 2022 record all complaints)

Answer 8

Subject and examples:

1. Bank accounts - closure and current account charges
2. Cheques and bankers drafts - stolen or forged cheques, cheques returned unpaid
3. Direct debits and continuous payment authorities - payments failed to be made
4. Disputed transactions - no cash in a cash machine but the amount was deducted from customers account
5. Electronic money services for buyers and sellers - a business unfairly revered a payment
6. IT problems at banks - charges for late or missed payments
7. Packaged bank accounts - inability to use one of the accounts features

Question 9

A banks complaint handling process

Answer 9

Customers are told to contact the bank by app email or phone to explain their problems
The bank will state how long it will take to reply, and the customer can take the complaint to the country higher complaint of authority if they are not satisfied

Mose band website provide information on how you can make a complaint

Question 10

Best practises for handling a f2f complaint

Answer 10

• staff should listen carefully to the problem and note down the details. Staff should try putting themselves in the place of the customer, remembering that if the customer it’s not satisfied, they are competitors the customer can switch to.
• Staff should remain calm and speak politely
• Staff should ask relevant questions to gain a full picture of the situation and understand the reason of complaint
• Staff should understand how the customer feels and show empathy
• Staff should apologise and thank the customer for taking the trouble to explain their issue.
• If the complaint cannot be resolved straightaway, it should be past onto another staff or the staff should tell the customer that the matter will go to a more senior member
  Should explain the procedure for passing it on to the customer
• Staff should end the conversation on a friendly note that the customer is important to the bank
• The complaint should be reported internally

Question 11

Training and competence

Answer 11

World bank - (2019) financial service provider say that staff that handle complaint should have sufficient training and competence to deal with them. Staff should be aware of the internal dispute resolution procedures.

The UKs FCA - (2015) they training and competitors makes sure the workforce is qualified and well regulated.

Question 12

Competence

Answer 12

= having the skills and knowledge needed to discharge the responsibilities of an employees role
It includes achieving a good standard of ethical behaviour.

Banks should put procedures in place to access the competence of individuals and training should be put in often.

The review should take into account and changes in the marketplace, product, regulations and consider an expertise and skills of employees.

Question 13

Root cause analysis

Answer 13

= the underlying cause

As banks get a lot of issues , it helps management to distinguish between a symptom and the underlying cause of the issue.

Example: a bank might receive a lot of complaints about direct debit payments not being made. Management information will show an increase in the number of calls to customer service about this.

Unhappy customers might discuss this on social media .
These indicators are the symptoms of the problems
When the management investigates the problems they find that a system problems affected direct debit payments
This was the root cause