In the FCA’s recent review of complaints processes (CP14/30) it found firms did not always consider the impact on retail consumers.
Currently, complaints which are dealt with by the end of the next business day do not require a letter to be sent to the customer. For these quickly resolved complaints, if dissatisfied, the customer could have to wait up to eight weeks before being able to go to the Financial Ombudsman Service.
The FCA is now proposing that Firms with eligible complainants will be allowed up to three business days to deal with less complex complaints without issuing a formal letter. If dissatisfied with the outcome, complainants will then be able to immediately refer their case to the ombudsman service.
To improve transparency firms will have to report all complaints to the FCA, not just those where final response letters are issued. Firms will also have to analyse details reporting on the categories and causes of complaints. The details will be published together with details about the size of firms. The intention is to allow for comparison of firms and their performance.
Amendments are also proposed to the complaints handling rules to implement the Alternative Dispute Resolution Directive (ADRD). The rules will be amended so firms will be required to tell consumers when they respond to complaints if the firm will consent to the ombudsman service considering a complaint made to the service outside the relevant time limits.
A further proposal is that consumers contacting a firm by telephone, regarding existing contracts, must not be bound to pay for premium rate calls.
Complyport View – We welcome improvements in consumer protection and believe, in the current environment, these proposals will not be “watered down”. Accordingly, we recommend that firms consider how they may need to change current processes and train staff to deal with the changes when they take effect.
