If you're complaining about a financial services provider, you'll get further if you follow these three steps.
Most of us would like to have as little as possible to do with financial services companies, whether banks, insurers or pension providers. But if you reach a stage where you need to make a complaint about a service or product, you need to know how best to go about it.
As with most situations where you want to make a formal complaint, your first step must be to contact the firm directly. Before you do so, make sure you have an idea of what you're looking to get out of the situation. Is your ultimate aim to receive financial compensation? Or are you merely looking for an acknowledgement that they have mishandled your case in some way?
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Ideally, your first complaint should be by letter, or at least by email, so that you have a record of your correspondence from the very beginning. The industry regulator, the Financial Conduct Authority (FCA), must respond to you, in writing, within eight weeks. (You can check a register of regulated financial-services companies on the FCA's website.) Their reply must detail whether your complaint has been successful, or alternatively why they will require more time to lookinto it.
If you don't get a response within eight weeks, or you're not happy with their answer, you can then go to the Financial Ombudsman Service (FOS). This is a free and independent service specifically geared towards resolving disputes between customers and financial services companies.
The FOS will get in touch with the company to ask them for their side of the story, and then it will decide whether or not to uphold your complaint. Note that you must contact the FOS within six months of receiving a final response from the company, or it may not be able to deal with your complaint, as the FCA points out.
Lawyers are a last resort
Finally, the last port of call would be to take legal action though this is only an option if you reject the ombudsman's decision. If you accept it, then the decision is legally binding.
Note that there are companies who will pursue claims on your behalf, but such help comes at a cost, so you should carefully consider whether the potential benefit outweighs the expense.
Even if you go down the "no win, no fee" route, this could end up taking a significant chunk out ofany compensation youare awarded.
-
Review: Trasierra – a yoga retreat in the Spanish hillsFlora Connell joins a yoga retreat at Trasierra, in the Sierra Morena mountains north of Seville
-
How much should I have in emergency savings?When your boiler breaks or your car won’t start, you can find yourself paying a hefty bill. How much should you have in emergency savings to cover unexpected costs?
-
Santander launches best easy access savings rate in 14 yearsSantander launches market leading easy access savings rate, but you’ll have to act fast if you want to take advantage - we have all the details
-
Bank of Baroda closes doors to UK retail bankingAfter almost 70 years of operating in the UK, one of India’s largest bank is shutting up shop in the UK retail banking market. We explain everything you need to know if you have savings or a current account with Bank of Baroda
-
The rise and fall of finfluencers as FCA clamps down on poor adviceFCA clamps down on ‘finfluencers’ - but will it protect consumers from ‘bad advice’? Kalpana Fitzpatrick looks at the rise and fall of finfluencers
-
Lloyds, Santander and HSBC hike savings ratesBanks and building societies have been raising their savings rates as the base rate continues to rise. Our round-up of all the savings rates hikes.
-
FCA: Banks with lowest savings rates to face “robust action”The regulator has unveiled a new 14 point plan that will force savings providers to justify low interest rates on easy access savings accounts - will your savings get a boost?
-
Watchdog summons banks to explain paltry savings ratesSavings rates trail mortgage rates - and the financial watchdog has summoned banks to a meeting amid concerns of profiteering.
-
Consumer Duty: how the rules are changing financial services - and what they mean for youConsumer Duty rules came into force almost a year ago, aiming to put customers’ needs first - but have they made a difference?
-
Mortgage help from today: lenders pledge more help as rates soarBanks and building societies have agreed to offer more flexibility to homeowners struggling with rising mortgage rates. We explain what mortgage help that’s been announced
