annual review of consumer complaints about
insurance • credit • banking • savings • investments
not sure what you’re up to tonight? you should come out with us
not sure what to do about the problem with your bank?
you should tweet the ombudsman @financialombuds
financial-ombudsman.org.uk
financial year 2013/2014 about the om-buds-man
●● We were set up under ●● Our job is to give honest the Financial Services answers. If we decide a and Markets Act 2000 to business has treated a resolve individual disputes consumer fairly, we explain between consumers and why. But if we decide the financial businesses – business has acted wrongly, fairly, reasonably, quickly we can order matters to and informally. be put right.
●● We handle complaints ●● Our service is free to about all kinds of money consumers. matters – from insurance and mortgages to savings ●● Consumers don’t have to and credit. accept any decision we make. But if they accept an ●● If a financial business isn’t ombudsman’s decision, able to resolve a customer’s it is binding on both them complaint, we can step and the business. in to settle the dispute. But the business must ●● We are not the regulator. have the chance to sort We don’t write the rules for things out itself first. financial businesses – or fine them if rules are broken. ●● We are independent and impartial. When we look ●● Everyone can learn something into a complaint, we listen from complaints – so that carefully to both sides of what’s gone wrong in the the story and weigh up past need not happen all the facts. again. This is why we have a crucial role in sharing what we see – to help prevent future problems our job is to and build confidence. give honest answers our year at a glance
●● We handled 2,357,374 initial ●● 63% of the total number of enquiries and complaints cases we dealt with related from consumers – almost to four banking groups 8,000 each working day. – while 4,504 financial businesses accounted for ●● Around one in five of the just 3% of our caseload. initial consumer enquiries we received turned into a ●● We resolved a record formal dispute – a record 518,778 cases – resulting in 512,167 new cases. compensation for consumers in 58% of complaints. ●● 78% of new cases were about the sale of payment ●● For cases other than protection insurance (PPI), PPI, we resolved 44% with the number of PPI of complaints within complaints rising 6% three months. to 399,939. ●● We operated on a cost ●● Complaints about base of £223 million with “packaged” bank accounts 3,526 employees at the increased by more than end of the year. threefold, while complaints about credit cards went ●● We took part in over 250 down by 47%. seminars, roadshows, exhibitions and events. ●● Complaints about investments and insurance ●● We answered over remained at broadly similar 600 enquiries from levels to the last two years. parliamentarians and 24,551 calls to our technical advice desk – our free, expert helpline for businesses and helping build advice workers. ●● We featured in 6,000 media stories – and 77% of adults confidence in the UK said they were aware of the Financial Ombudsman Service.
All figures relate to the financial year 2013/2014
Financial Ombudsman Service annual review 2013/2014 1 contents
4 chairman’s foreword
8 chief ombudsman’s report
19 the complaints we received
41 what the complaints were about
73 how we dealt with the complaints
91 who complained to us
131 who the complaints were about
141 other work we have done
149 our news updates
163 our board and senior people
169 index
173 our services for businesses and consumer advice agencies
174 what matters to us
2 annual review 2013/2014 Financial Ombudsman Service
2,357,374 initial enquiries and complaints you listened to me handled by the frontline advisers on our and cared about what consumer helpline (see page 20 for more details) I had to say
you got to grips 512,167 new cases with things and used referred to our adjudicators and ombudsmen for further work common sense (see page 42 for more details)
487,749 cases resolved you gave me clear by our adjudicators through mediation, recommended cases handle we how of an overview and honest answers and let settlements and adjudications
me know where I stood (see page 74 for more details)
31,029 cases resolved by our ombudsmen making formal decisions at the final “appeal” stage of our process
(see page 75 for more details)
all figures relate to the financial year 2013/2014
2 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 3 chairman’s foreword
... while we have resolved more PPI cases than ever before, we see a wide diversity of other cases – from current to accounts car insurance pensions to payday loans
Sir Nicholas Montagu kcb
4 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 5
chairman’s foreword 4 annual review 2013/2014 FinancialOmbudsman Service
FinancialOmbudsman Service received ourmillionth case. relatively soonit came afterwe is remarkable about that is how since ourbeginnings in2000. What two millionth case referred to us During the year we received the have beenintense. Ombudsman Service. Once again thepressures ontheservice of ourdragging ourfeet or resting onlaurels at theFinancial million resolved. With aworkload like this, there is noquestion Another year, anotherhalf amillion cases in,andanotherhalf a
see amillion more. but thenless than three years to a million cases referred to us – In fact, it took adecade to have annual review 2013/2014
5 chairman’s foreword chairman’s foreword
I see this as indicative not only of It would be a mistake to let PPI cloud the sheer scale of the issues involved, our vision of all the other complaints but also – and more positively that we receive and classify as – of a greater awareness that our “general casework”. After all, there service offers a free and genuinely were over 110,000 of them during impartial route to getting a fair the year, and that word “general” decision on complaints against conceals a wide diversity of cases financial providers. Continued – from current accounts to car outreach activity, to increase insurance, pensions to payday loans. awareness and improve our While it would be good to think engagement with communities that the lessons of PPI have been across the United Kingdom, learned, there is no room for remains a high priority for us. complacency. And we are constantly Yet again this year, complaints about on the lookout for trends which may the sale of payment protection indicate a cause for concern, insurance (PPI) have dominated and for possible action by the the landscape. Even though the regulator. I am pleased to note the torrent of incoming cases on which I growing strength of our relationship commented last year has slackened, with the Financial Conduct Authority we are still measuring our weekly (FCA) – now just over a year old intake of new PPI complaints in – and the effectiveness of our thousands. While we have resolved cooperation with them. more PPI cases than ever before One of the greatest challenges to during the year – a record 389,730 the Financial Ombudsman Service in total – we still have some 400,000 is to be sure that we do not let the to deal with. sheer volume of our current caseload I recognise what that means in terms prevent us from raising our eyes of people having to wait to know the to the horizon and thinking about outcome of their complaints. And I am the future. We are mindful that our grateful for the forbearance people operating model has remained have shown. We will continue to work essentially the same since we began. with the banks and other businesses to clear the stock of these cases. And I believe that an end is in sight, if not yet near.
6 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 7 chairman’s foreword
And we recognise that the huge This will build on the work of the developments that have taken place latest of our three-yearly reviews – – and are continuing to do so in with the Future Foundation giving us technology, in particular – create an insight into how the world is changing urgent need to look hard at how best and how this is likely to affect the we should be shaping our service to relationship between businesses and be responsive to the changing needs their customers over the next decade. of consumers and businesses. I am confident that our dynamic and determined workforce will embrace foreword chairman’s New products and new technologies the certainty of continuing change take off every year – think of Bitcoin and with their usual dedication and Paym, of Vine and FaceTime. This can enthusiasm. lead to changing views on what fairness means, and changing expectations of My final words are to record my how quick and responsive a service like personal thanks to Natalie Ceeney, ours should be. who stepped down as chief ombudsman in November 2013 after Someone worried about a financial four years with the service. The board transaction carried out on a mobile and I are very grateful to Natalie for banking app will neither expect her achievements as head of the nor want a prolonged paper-driven ombudsman service – which under process to resolve their complaint. her leadership became a Sunday That points to the need for a more Times Best Companies “Top 100” “segmented” service, where a organisation, handling over 2,000 complaint involving payment via a consumer disputes every day. I am mobile is treated differently from, also very grateful to Tony Boorman say, a complex pension or mortgage who has taken charge of the running dispute which may call for detailed of the service with his customary delving into the past and the piles of professionalism. paper that come with it.
We are preparing ourselves to meet these challenges. This involves looking to shape our future round the different needs and expectations of our stakeholders – working with financial providers to help us become less process-driven, Sir Nicholas Montagu KCB and with consumers to better May 2014 understand what they want from us.
6 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 7 chief ombudsman’s report
I am enormously proud of the fact that we have stayed true to our original ombudsman purpose and values– even though we have had to change, and change rapidly
Tony Boorman
8 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 9
chief ombudsman’s report 8 and ombudsman I amenormously have stayed have to change, and annual review 2013/2014 values change rapidly
proud – even thoughwe have had
true purpose of thefact that we FinancialOmbudsman Service to ouroriginal
Financial Ombudsman Service consumers have been referring to us. and the volatility inthetypes of cases unprecedented volumes of complaints way we work –to handle boththe our operation andadapting the We’ve spent this timescaling up or so, we have beendealing with precisely this challenge. previous annual reviews will know that for thelast two years period of time.But anyone whois familiar with ourservice and deal with adoubling of demand for its services over ashort It’s always going to beachallenge for any organisation to
them head-on. ahead, andmore oneof meeting bracing ourselves for thechallenges it’s beenless aquestion of our progress indoing so. This year And we have made significant annual review 2013/2014
9 chief ombudsman’s report chief ombudsman’s report
During the year covered by this So it is important to share our annual review – 2013/2014 – observations with our stakeholders. we have resolved a record number But anecdotal evidence can be of cases. We have given over half a misleading. It would be all too easy million people honest answers to to assume that what we saw in one their complaints. That is a reassuring particular case is evidence of a more indication that our operational plans widespread problem. It might be, are sound – and that the work of the but it might not. Our job is to turn last few years is paying off. observations into insight. And to do that, we need to gather intelligence I am pleased to say that the tide of from across all our casework teams, complaints about payment protection and make sense of what it’s telling us. insurance (PPI) finally seems to be turning. But we know how many This means having to think laterally. unresolved cases we still have on our We have to move away from artificial books. And we have been very open divisions imposed by old processes – about the reality that we are certainly those of financial businesses and our not out of the PPI woods yet. own – for handling complaints.
In spite of all these challenges, So if, for example, we see problems I am enormously proud of the fact involving sales, or over-complex that we have stayed true to our terms, or administrative failings in original ombudsman purpose and one particular product area, we need values, even though we have had to to think carefully about what we can change – and change rapidly. learn from these business-consumer We exist not only to resolve individual interactions that might also help disputes. One of the most valuable prevent problems elsewhere. functions of any ombudsman scheme This is something we have been is to share what it is seeing – to help working towards for a long time. make things better in the future. Fourteen years ago, the ombudsman We are uniquely placed to see what started out as a “private” service. is important to customers when they We didn’t comment in public on the are using financial services. We see individual cases we handled. what they expect – and we see what happens when those expectations are not being met.
10 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 11 chief ombudsman’s report
But not long after we were During the year, our stakeholders established, we started to open in financial businesses reported up. We began publishing data on increasingly high levels of the complaints that were coming confidence in the ombudsman to us. Then we started sharing our service. Three quarters of frontline general approach to particular types complaints handlers across all of cases. And this year we started businesses said the financial services publishing each individual decision sector could have confidence in us. our ombudsmen make. 57% of managers in those businesses said the same – up 19% on last year. But simply publishing individual This is very encouraging indeed. cases won’t always be enough to chief ombudsman’s report ombudsman’s chief make improvement happen. Turning to consumers, we know from We also need to develop thoughtful, our face-to-face conversations with qualitative insights based on the thousands of people – at events quantitative data we are seeing ranging from independent living – and to share this with the wider exhibitions to student advice fairs world. This is where the true value – that not everyone understands our of an ombudsman scheme lies role. Some people we meet think – and it’s something we have started we’re the regulator – asking “how can doing more during the year covered you let them get away with it?” by this annual review. On the other hand, some people A few years ago we developed a set of think we’re a consumer champion principles for how we want our service – saying “we need someone like you to work. We are still committed to to stand up for us”. It’s important each of those principles, and I will that we work to try and clarify any use them as a framework to reflect on misconceptions about who we are our performance during the year. – and what our role is – from the outset. Trust can only be built on a clear understanding of what to expect. delivering a trusted, fair and easy to use service
Trust will always underpin the work we do. Our “product” isn’t something tangible. It’s about making judgements based on the evidence and the facts available to us. So if people didn’t trust our judgement, our role as an ombudsman would be seriously undermined.
10 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 11 chief ombudsman’s report
Despite these tensions, I’m pleased We also know that people who are to say that during the year 70% of experiencing financial hardship might adults across the UK said they would be less likely to come to us with a trust us. And 80% of people whose problem. These people are often complaints we handled said they trapped in a cycle of debt and might would recommend us to friends not be sure how to get out of it. and family – even where we hadn’t Many might not want to admit that made a decision in their own favour. they’re having problems. The case This is a positive sign that people study on page 29 of this annual review recognise that we are giving honest shows just how much we were able answers to their problems. to help someone in this position.
But we certainly can’t afford to be We might not be the first organisation complacent. We know there are many that springs to mind when it comes consumers out there who might need to helping people through difficult our services, but who are not getting situations like this. But we often in touch with us. During the year our find that our approach – listening research suggested – once again to problems, talking things through – that someone’s age, socio- informally, and looking for pragmatic economic status and ethnic solutions – lends itself to coming background can all affect how likely up with a way forward that both they are to use the ombudsman. the consumer and the business are satisfied with. As this particular case Mindful of this, we have put more study shows, the effect on people’s time and effort than ever into getting lives can be profound. out into local communities and working with particular groups of During the year we continued to put a people – at “melas”, roadshows and lot of effort into building partnerships other events. We’ve met people in with frontline advice workers and cinema foyers, supermarkets and charities – locally and nationally football grounds – to hear what – to reach people who might need they think about the ombudsman. us. This has included inviting a We’ve worked with regional media wide range of charities and support and joined forces with local MPs organisations to meet our staff and community leaders to get our and talk about how we can help messages out across the length and people with different needs. breadth of the UK – including some of the most geographically remote parts.
12 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 13 chief ombudsman’s report
This has involved finding out how Discussing issues face-to-face we can make ourselves easier to use can be particularly helpful in the and more approachable for people “prevention” side of our role. who might lack confidence in dealing During the year we have hosted with “institutions”. more events than ever for smaller businesses – from Glasgow to During the year we have also made Bournemouth, and Belfast to Norwich far more use of social media – having – to help them get to grips with the conversations with people in the ombudsman’s role, our approach to open and tweeting “real time” trends complaints, and what to do if they from our consumer helpline. This is have a complaint referred to us. another way of reaching people who chief ombudsman’s report ombudsman’s chief might not otherwise be aware of us Of course, we also continue to work or comfortable engaging with us. closely with larger businesses. Many of these businesses are more As this annual review shows, familiar with us – simply because we continue to keep a close eye they have significantly more customer on who is and who isn’t using the complaints referred to us. We have ombudsman. This will help us make arrangements in place both at an the best use of our resources in the operational and a strategic level to future – and continue to make ours make sure we are sharing insight and a service for everyone. experience with these businesses.
This includes talking about the sharing our insight and experience issues we are seeing and, where – to help build confidence relevant, working with the businesses Earlier in this report I mentioned involved to find an efficient way of our determination to share what settling large numbers of complaints we see with the financial services involving similar issues. sector. Every ombudsman scheme – whatever its remit – should take responsibility for helping to improve complaints handling. We have had another busy year meeting businesses – from the smallest consumer credit provider to the largest high street bank – to share our insight and experience.
12 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 13 chief ombudsman’s report
But not everything can be done face- During the year they helped people to-face. During the year, we have deal with problems – like the ones continued to increase the number we highlight on pages 148 of this of resources we have available on annual review – without the need our website – to help complaints for us to get involved. handlers understand how we might The new regulator for the financial approach particular types of cases. services sector, the Financial Conduct We have published updated guidance Authority (FCA), has now been up on a wide range of product areas and running for over a year. – from pet insurance to portfolio We have maintained a close working management. Particularly relevant relationship with the regulator. to early 2014, we also updated our We have kept the FCA abreast of online technical guide on disputes emerging issues that we have come involving storm damage and flooding. across, as well as where we have seen We have continued to publish individual examples of poor practice. illustrative case studies in We also worked with the Office of ombudsman news – and during Fair Trading (OFT) on changes to the year 70% of readers said that the way that consumer credit is what they’d read had influenced the regulated. This involved the transfer way they approached complaints. of responsibility for the regulation of And we have been publishing our consumer credit from the OFT to the ombudsmen’s individual decisions FCA from April 2014. And we have for 12 months – as another way of shared our insight into the activities shedding light on our approach of claims-management companies to the cases we see. with the Ministry of Justice and the During the year our advice desk Legal Ombudsman. – our free helpline for businesses I am determined to make sure we and advice workers – received over find more ways of sharing our 24,000 calls. Our team on the insight – and increasing its impact advice desk is there to explain – over the coming year. how the ombudsman might approach a particular complaint.
14 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 15 chief ombudsman’s report
putting knowledge and expertise at During the year, however, we have the heart of everything we do been able to retain people as we had hoped to and grow as an Once again, training and developing organisation to meet the challenges our staff has been a high priority for described in this review. We were us during the year. With many new once again recognised as a “Top 100” ombudsmen and adjudicators joining organisation to work for in the Sunday us – and with a high proportion Times Best Companies survey. of relatively new staff – we have Keeping an engaged and enthusiastic provided extensive training to make workforce helps us deliver the fair sure that people have the necessary and consistent outcomes that our skills and knowledge to handle cases customers rely on. report ombudsman’s chief to the high standards we expect.
We have focused on building being flexible, reliable and effective people’s professionalism – with our ombudsmen as mentors Ours is a demand-led service. and coaches at the heart of our So although we consult widely on our professional leadership. We have plans and assumptions, forecasting also been re-thinking our approach and planning for demand is very to “knowledge management” – for difficult. We also see a high degree of example, by introducing “knowledge volatility in the types of cases referred communities” led by our most to us. So we have to work flexibly, experienced members of staff. and be ready to deal effectively with whatever we are called on to do. We recognise how important it is that our staff should feel stretched The number of PPI cases we received and challenged – with their talents during the year far exceeded our – nurtured and developed. We also and our stakeholders’ – expectations. know that there is growing demand But the time and effort we have put for experienced complaints handlers into scaling up our operation over across many sectors. So it’s inevitable the last few years has begun to pay that some of our staff may decide dividends. We began the year well to develop their careers outside the placed to deal with growing demand. ombudsman service. And we have made significant inroads into our caseload – resolving a record 389,730 PPI cases during the year.
14 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 15 chief ombudsman’s report
But PPI isn’t the whole story. Although I am pleased to see from During the year, for example, our surveys and research that we have seen a substantial increase businesses and consumers are in cases about “packaged” bank broadly satisfied with the service accounts and significantly fewer we provide, I recognise that our cases about portfolio management. timeliness is something we need This means we need to be flexible to improve. We know that people in the way we manage our caseload, want their complaints resolved as so that every case we deal with quickly as possible, and many are is handled professionally and still waiting far longer than I would to the highest standards. like. I am determined to improve our ability to resolve complaints more We are fortunate to have a strong quickly – and just as effectively team of professional leaders – – over the coming year. our ombudsmen – who help make it possible for us to combine flexibility and rigour with pace and precision. operating an efficient infrastructure
I mentioned earlier in this report that We are funded by the businesses we our service is well placed to see the cover, and we fully appreciate that wider “cross-cutting” issues and they rightly expect value for money. trends in the complaints referred to In April 2013 we introduced new us. But to be ready for future cases, group-account funding arrangements we also need to be able to anticipate for the four largest financial services what might be around the next groups – reflecting the fact that corner. So during the year we have together they accounted for some strengthened our “horizon-scanning” 60% of our caseload. capability – to be able to identify new issues quickly and respond effectively to changes in the volumes and types of cases referred to us. This in turn helps us make sure that we have the resources we need to deal with these changes – and that we know where and how to deploy them.
16 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 17 chief ombudsman’s report
This new arrangement helped ensure During the year we have achieved that we received our income in a our aim of handling the vast majority timely and stable way during the of cases electronically. We have year – enabling us to adjust our introduced document scanning and resources to respond to volatility in electronic-file management across demand. The four groups involved our entire casework operation. welcomed the transparency of the This enabled us, for example, new arrangements – and recognised to quickly sort out complaints from that it brought lower administrative consumers whose problems had overheads and increased efficiency. been caused by IT glitches at their We have now agreed to extend bank during the year.
these arrangements to a further four report ombudsman’s chief Over the coming year we will be financial groups for the 2014/2015 working hard to identify more ways financial year. in which we can work differently and The unit cost of our service has more efficiently – to provide value for been rising in recent years, as we money to the businesses who fund have geared up our resources in us, and better customer service for response to the doubling of our those whose complaints we handle. workload. However, in 2013/2014 our unit cost fell. This was a result remembering what matters of the investment we have made in a larger workforce that is now This annual review is full of data. making significant inroads into In a few months’ time we will publish our stock of cases. a directors’ report, which contains yet more information about the way we However, we know from our run our service. And throughout the experience of dealing with similar year just gone, we have published large-scale disputes – for example, still more statistics about the trends mis-sold mortgage endowments in we have been seeing in product the mid-2000s – that the PPI cases areas, and about the businesses we are dealing with are likely to involved in those complaints. become increasingly complex and entrenched over the next few years. This is likely to have implications for our unit cost in the future.
16 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 17 chief ombudsman’s report
But I come back to where I began this The ombudsman’s job is to make report. Quantitative data is useful evidence-based decisions. – and can tell us a great deal about Our decisions about how we run what’s going on when consumers the organisation, what we prioritise, and financial businesses interact. how we develop and improve, It is vital that we all understand the must also be based on evidence. trends, and what they might mean. Seeing the year set out in this annual review helps us make those But as well as looking for the numbers decisions for the future. – perhaps comparing and contrasting with last year – I urge you to look at Looking back at 2013/2014, I believe the words in this annual review. that everyone at the ombudsman You will find several case studies can be proud of the progress we that are striking reminders of why have made. We still have a long the ombudsman is here. We include way to go. But I’m confident that we these to bring us back to the reality are equipped to make even more of the day-to-day work we do progress over the coming year – and the people involved. – not only in resolving record levels of cases, but also helping businesses and their customers re-establish the trust that underpins a successful financial services sector.
Tony Boorman May 2014
18 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 19 chief ombudsman’s report the complaints we received we the complaints
18 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 19 the complaints we received
our consumer helpline We handled 2,357,374 enquiries during the year During the year consumers – a 9% increase on the continued to contact our previous year. This means consumer helpline in record that each working day, numbers – with questions, we replied to an average concerns and complaints of almost 8,000 phone about their dealings with calls, letters and emails financial services. from consumers.
initial enquiries and complaints from consumers phone enquiries written enquiries (including email) 1,150,002 total enquiries 1,207,372 2014 2,357,374
1,067,607
1,093,832 2013 2,161,439
673,999
594,799 2012 1,268,798
461,613
550,758 2011 1,012,371 we handled 448,140
476,955 2,357,374 enquiries 2010 925,095 during the year 399,918
389,959 2009 789,877
425,942
368,706 2008 794,648
year ended 31 March
20 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 21 the complaints we received
Our consumer helpline We offer three different is the first port of call for phone numbers for everyone who phones the consumers to use to call ombudsman service. This our helpline. Under many year 95% of the 46,000 phone tariffs, one or more people we asked said it of our numbers will be free had been easy to find out for a consumer to call. how to contact us.
the phone numbers people used to contact our helpline the complaints we received we the complaints • 0800 023 4567 62% • 0300 123 9123 29% • 0845 080 1800 9%
The proportion of people The telecoms regulator, This is reflected in another phoning our 0800 number Ofcom, has committed to fall in the number of calls rose by 17% during the overhauling and simplifying to our 0845 number – year. Although this number call charges from July 2015 from 13% of our total calls is usually free to call from – including making 0800 last year to 9% this year. a landline, most mobile calls free from mobiles. We continue to remind phone users have to pay So we may see the those organisations who for these calls. proportions of people are still giving out our using our different numbers 0845 number that we Our 0300 number is less change in the future. have cheaper options expensive for mobile – and that they should phone users, and free on When we launched our update their records. some tariffs. So we were original 0845 number, surprised to find calls to there weren’t many cheaper this number fell by 15% alternatives available for over the year. This may organisations to offer their reflect the fact that some customers. However, people aren’t yet familiar since we launched our with the 0300 format freephone 0800 number – and might not be quite – more than five years sure how much it costs ago – we haven’t promoted to call numbers with our 0845 number. this prefix.
20 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 21 the complaints we received
the time of day consumers phoned us • between 8am and 10am 11.5% • between 10am and midday 24% • between midday and 2pm 22.5% • between 2pm and 4pm 23% • between 4pm and 6pm 15% • between 6pm and 8pm 4%
Consumers can contact We use call-centre planning Another spike happened us from 8am to 8pm tools to manage the on Tuesday 11 June 2013 on weekdays as well as volatility in the number of when we received 3,845 on Saturday mornings. incoming calls. We often phone calls just about This helps us meet experience sudden sharp PPI. This followed a widely our commitment increases in calls when reported media story about to be accessible to we feature on the radio poor standards of PPI everyone, whatever their or television – as people complaints handling by family situation, work realise they could have a a major bank. commitments and lifestyle. problem and want to talk The quietest day for our about it straight away. We generally receive the consumer helpline was Having the flexibility to most calls on Mondays Christmas Eve 2013. handle fluctuations in call between 10am and 12 Friday afternoons in volumes involves making noon. This year we received July and August were sure as many of our staff as up to 700 phone calls an also quieter times on possible are dealing with hour at this time. our phones. phone calls – rather than written enquiries – at the busiest times. The busiest day for our at our busiest times consumer helpline was Monday 13 May 2013 – we received up to 700 when we received 6,165 phone calls about all kinds phone calls an hour of problems. 63% of these calls were about payment protection insurance (PPI).
22 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 23 the complaints we received
how people phoned our consumer helpline
• from a landline phone 76% • from a mobile phone 18% • overseas/untraceable/other 4% • calls made over the internet 2% the complaints we received we the complaints The proportion of calls to We aim to answer 80% the length of calls to our consumer helpline our consumer helpline from of phone calls to our mobiles increased again consumer helpline within during the year. However, 20 seconds. This is a we know that certain widely-accepted standard groups of consumers – for organisations receiving particularly older people – the volume of calls that prefer to use a landline we do. During the year we to phone us. answered 82% of calls about everything other than 3,224 people called us PPI within 20 seconds. from payphones – a similar number to last year. We Looking only at calls about always tell people we’re PPI, we answered 76% of happy to phone them back these within 20 seconds – if they’re worried about the up from 72% in the previous under 3 minutes 27% cost of calling us. year. Although this is still • fewer than our target, it 23,215 people phoned between 3 and 5 minutes reflects the much larger 16% us over the internet using • volumes of calls about PPI services such as Skype – than were forecast at the between 5 and 10 minutes 25.5% more than three times as • start of the year. many as in the previous between 10 and 15 minutes 18.5% year. This includes a small 92% of consumers we • number of consumers who surveyed over the year between 15 and 20 minutes 7% talked to us using online said they felt we answered • messaging. their calls promptly. • over 20 minutes 6%
3,224 people called us from payphones
22 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 23 the complaints we received
Consumers who phone us online contact Our PPI questionnaire hear a welcome message is the standard form Instead of calling us, many – recorded by our principal used by businesses, people would rather find ombudsman – asking consumer bodies and out the information they them to choose one of four claims managers. It helps need from our website. options depending on what ensure the information we their call is about. Over the last year, an and these organisations average of 17,100 people collect from consumers is This way, we can make sure visited our website each consistent – and all in one their call reaches someone day. Though the busiest place – so complaints can on our consumer helpline period remains between be dealt with as efficiently with the right knowledge 12 noon and 1pm on as possible. to give them an answer. weekdays, many people As ever more types The other most-visited take advantage of being of financial service pages on our website last able to email us or find an come under our remit, year were: answer online at any time. filtering calls this way is There were almost 150,000 ●● Our news page – increasingly important hits on our website on with 227 news updates to answering people’s Christmas Day 2013 – added during the year. questions efficiently. when over a thousand ●● New or updated guidance During the year, the people downloaded notes in our “online proportions of phone calls complaint forms. technical resource”, taking less than three On our website’s busiest which sets out our minutes or more than day last year – 29 May 2013 approach to complaints eleven minutes declined – over 22,000 people involving a wide range – while those lasting visited to download of products and issues between three and ten our newly-published – from pet insurance to minutes increased by 15%. annual review. portfolio management, Longer phone motor valuations to storm In total 651,682 complaint conversations still often damage. forms and 1,632,563 involve consumers who PPI questionnaires were ●● Case studies from the are phoning us to ask for downloaded from our online version of our help and guidance about website during the year. newsletter, ombudsman making a PPI complaint – news – which during rather than paying a claims the year covered 14 manager to do it for them. different subjects including payday lending, “packaged” bank accounts and complaints involving on the busiest day over older consumers. 22,000 people visited our website
24 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 25 the complaints we received
the words searched for most often on our website
This year 1,000 It’s interesting that such organisations linked from a significant proportion of their website to ours – searches involve simply from savvywoman.co.uk to the word “complaint” shelter.org.uk, bbc.co.uk – on a website that is to thestudentroom.co.uk. almost exclusively about There is more information complaints. This reminds about the people who us how unfamiliar the visited our website in language of financial the chapter called “who complaints can be for many complained to us”. people – and how much help they might need to We carefully monitor the articulate their problem. words that people use
in their searches on our received we the complaints website. If we see that a lot of people are searching using a particular word, we see whether we can make the relevant information easier to find.
24 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 25 the complaints we received
engaging with people through various channels how we handle initial enquiries and complaints
During the year we introduced a webchat facility for Our consumer helpline deals with all the initial enquiries people to talk to us online. We also got more involved we receive. We aim to sort out problems and queries at in conversations on social media sites. There is more the earliest possible stage – without the more formal information about how we use social media in the chapter involvement of an adjudicator or ombudsman. called “who complained to us”. Getting things sorted out early can involve:
Although these channels may not lend themselves ●● Explaining businesses’ ●● Giving our view on to the complexity and sensitivity that some complaints complaint procedures the likely outcome of involve, many people tell us they like the control that – and how we can step a complaint – based on online contact gives them – which they might not feel in after eight weeks. our experience – which if they’re on the phone talking to a stranger about can involve explaining ●● Confirming the details something difficult or unfamiliar. why we think a matter of who consumers need isn’t worth taking further. to complain to at a business. ●● Offering practical suggestions to both ●● Reassuring consumers sides on how to sort who feel intimidated things out informally by the formal process – without our formal of complaining – and involvement. forwarding their complaint to the business ●● Providing impartial if they want us to. guidance on any compensation already ●● Clarifying the role of the on offer. ombudsman – and the difference between us ●● Explaining the rules and the regulator. we have to follow – for example, on time limits ●● Providing the consumer for complaining to us. with the facts they need to resolve their problem ●● Where we can’t help, themselves – including suggesting other bodies directing them to our or ombudsman schemes website or other online who might be able to. information.
we engage with people through various channels
26 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 27 the complaints we received
what consumers phoned our helpline about
payment protection •insurance (PPI) 33% •loans and credit 9% car and motorbike • insurance 6% •current accounts 6% •general insurance* 4% the complaints we received we the complaints •credit cards 3% •household insurance 3% •mortgages 3% •other banking services 3% •mortgage endowments 1% •other financial products 5% other problems * including travel insurance, mobile phone cover, warranties and home emergency cover •and concerns** 24% ** other problems and concerns that people don’t know where else to take (for example, debt-related worries, or confusion about what steps to take if something has gone wrong)
During the year we Interestingly, the one We see this as an continued to receive a large significant growth area in increasingly important part number of enquiries on our the kinds of calls we were of our work. By getting consumer helpline about taking on our helpline involved long before things PPI. However, compared was “other”. The majority become complaints, we are with the previous year of these calls were from able to help businesses these made up a lower people who were not even do more to show their proportion of all the close to making a formal commitment to listening to enquiries we received. complaint, but who were their customers’ concerns, The relative proportions getting in touch with us just and to help consumers of calls about all other to talk through things they become more confident financial products were confused or frustrated and savvy customers. remained broadly similar about in their dealings with to those we have seen financial services. in previous years.
26 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 27 the complaints we received
making it easy to contact us lonely at Christmas Both our day-to-day Shortly before Christmas a man in The first thing we did was talk to his experience and our his eighties called us to say he was local bank about his situation. They wider research suggest having trouble getting a replacement hadn’t realised just how much he that certain groups chequebook from his bank. He told relied on using his chequebook – but of consumers find our helpline adviser how lovely it was as soon as we told them, they sent a complaining more to talk to someone – because it was temporary chequebook round to his daunting than others. the first time he’d done so in weeks. home. So although the people who As the conversation went on, we With the consumer’s permission, contact our helpline broadly realised that since the death of his we spoke to his local branch of reflect the population as a wife two years ago, he was struggling Age UK – and they took over from whole, some consumers with living on his own. He didn’t have there. The next time we spoke to him, are less likely than others any family or a circle of close friends Age UK had paid him a visit and to take their complaint he could turn to for help – and in his were supporting him through further – either with the own words, he had got himself “into a applying for the home-help he was business involved or by bit of a pickle”. He only used cheques entitled to. He’d also been to number referring it to us. or cash and hadn’t been able to get to of lunch clubs. In particular, younger the bank, so he had no money and no consumers and people food in the house. from lower socio-economic groups are generally less likely to make a formal complaint after they contact us initially. when words aren’t enough We continue to try to A consumer wrote to tell us she text translation service. The consumer deepen our understanding had a problem with her insurance came back to us straight away and of why this might be – company. Her letter didn’t give us said she’d like to use British Sign looking, for example, at the much information – and we could tell Language – and within 15 minutes financial products involved, from the way it was written that it had we were talking to her through and at the different taken considerable effort to put the a sign language interpreter using a attitudes that people have situation into words. live video link. For the first time, she towards financial matters was able to explain everything that In fact, part of the problem seemed – and towards complaining had happened to her. in general. to be that the insurance company was telling her she needed to put her As soon as the conversation We are committed to claim in writing. The consumer was finished, we contacted the insurer removing any barriers that deaf – and because written English to explain the background to the might prevent people from wasn’t her first language, she was claim – and the difficulty the using us. To help make finding it hard to get across how her consumer had experienced in our service as accessible car had been damaged. describing the problem. The insurer as possible, we have a then contacted the consumer using We sent the consumer a quick team of specially-trained a similar video link interpreting message through Text Relay to ask casework advisers who can service and sorted out her simple how she’d like to talk to us. Text Relay help consumers who might claim three working days later. otherwise struggle with provides a text-to-voice and voice-to- the procedures involved in making a complaint. Some of the ways we supported consumers are highlighted in these case studies.
28 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 29 the complaints we received
at breaking point
A caller to our helpline told us that We phoned the lender who had taken he was in the process of putting a the large amount of money from the payment plan in place with several consumer’s account. We explained the businesses he owed money to. impact their actions had had on the However, one of the lenders had consumer and his efforts to pay back gone into his account and removed all his creditors in a fair way. a lump sum of money – which hadn’t The business agreed to refund the left enough for other agreed payments money – and to contact the consumer to be made to other lenders. the same day to put an interim, lower He’d received a number of calls from payment arrangement in place until these other businesses – who had he’d got himself sorted out. said they would be “taking action” We called the consumer back to let against him. As the conversation him know what was going to happen. received we the complaints went on, the consumer became We offered to put him in touch with increasingly tearful and distressed one of the charities we work closely – and started to talk about not with – who could support him through wanting to “be around” any more. his financial difficulties and debt First, our helpline adviser offered issues from now on. The consumer to call the consumer back to save called us a couple of weeks later to him money – as he was using a say: “It may sound corny, but it’s pay-as-you-go mobile phone. thanks to you I’ve reached a more We then encouraged him to describe positive phase in my life”. his situation in a bit more detail. We established that he had tried to set up the payment plan on his own, but was struggling to deal with the increasing demands from the various businesses involved.
Our outreach work across There is more information us as straightforward as the UK with frontline about our access possible – by removing community and advice and inclusion work in unnecessary processes and workers continues to show the chapter called paperwork as far as we can. that some consumers are “who complained to us”. We are always upfront reluctant to phone us We were set up as an with consumers about our directly. Instead they prefer informal alternative to the impartiality – and what we the support of someone courts. Part of working can and can’t do. We often from their community informally involves explain that we’re not who they know and trust making it easier and more the regulator – and that – who can help them comfortable for people to although we can put things through the call. tell us their side of the story right if a consumer has This is why we work with – without feeling confused been treated unfairly, a wide range of charities or intimidated. This doesn’t it isn’t our role to “punish” and advice agencies, taking make us a consumer the business. part in three-way phone champion. We are equally conversations between concerned about making them, the consumer and us. businesses’ dealings with
28 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 29 the complaints we received
how people who contacted our consumer helpline first heard about us
•from a financial business 23% •on the internet 23% •from a friend, relative or colleague 22% •in the media (press and broadcast) 17% from a consumer advice agency •(eg Trading Standards or Citizens Advice) 10% •from a claims-management company 3% •other and “don’t know” 2%
We ask people who contact We also find that people our helpline how they first we ask at this early stage heard about us. During give different answers to the last year we found that people who have made a consumers were: formal complaint to us. For example, consumers ●● Slightly more likely who contacted our than in the previous helpline early on were: year to have heard about us in the media. ●● Over a third less likely to have first heard about ●● Slightly less likely the ombudsman from a than in the previous financial business than year to have heard about consumers who pursue us from a consumer a formal complaint with advice agency. us (see page 98).
●● Almost a fifth more likely to have first heard about us through word of mouth from a friend, relative or colleague.
●● More than twice as likely to have heard about us from a consumer advice agency.
30 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 31 the complaints we received
the value of our early However, we know the story Of the 55% of consumers involvement doesn’t end when we don’t who hadn’t sorted out their hear back from someone. problem, 62% said they It’s important that if a So we continue to try to were still talking to the consumer has a problem, find out more about what business – and might ask us they should feel listened happened next to those to step in if this didn’t work. to and know where they consumers who didn’t stand. Our research shows However, 38% of go on to make a formal that during the year: consumers said they complaint to us – after had let the issue drop ●● 92% of people who they’d been in touch with – up from 28% last year. contacted our helpline our consumer helpline. Most of these people said we’d clearly Our latest research said it was because they explained what shows that 45% of these didn’t think they would would happen next consumers were able to achieve anything. with their complaint. resolve their problem There is more information received we the complaints ●● 91% said we showed an themselves – without on what we’ve found out interest in their enquiry. needing further help from about people’s attitudes us. And 98% of these ●● 85% felt that the to complaining – and consumers felt our early person they spoke to the reasons why they involvement had helped knew enough to answer sometimes choose not to them do this. their questions. complain – in the chapter called “who complained In 2013/2014 – as a result to us”. of our focus on sorting things out as early as not sure what you’re up to possible – only around one tonight? you should in five potential complaints come out lost your raised with our consumer with us friends in helpline went on to need the crowd? our formal involvement. send them a text not sure what to do about the problem with your bank?
you should tweet lost your the ombudsman @financialombuds patience with your bank? send us a tweet
@financialombuds
om-buds-man does this ring a bell?
0300 123 9 123 financial-ombudsman.org.uk
30 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 31 the complaints we received
meeting different needs other languages The five languages we most frequently work in We’re a service for UK financial services tend to stay the same everyone – so we will providers are increasingly from year to year – always do our best to international – dealing although levels of meet any particular with customers all over demand for them can needs people have. the world. Last year, shift. Once again we saw We provide: 2,564 consumers from a decrease in requests 112 countries outside ●● An instant over-the- for Eastern European the UK brought complaints phone interpreting languages and a to us about businesses service to handle calls corresponding increase in we cover. And demand in languages other the proportion of casework for our interpreting and than English. in Asian languages. translation services rose For example, while the ●● Information on our again – by 27%. proportion of requests to website in 25 languages. In 4,484 cases during the communicate in Polish ●● Online video and audio year – 0.9% of all those we decreased by 10% this content for people who worked on – we talked to year, the proportion prefer these formats consumers in a language involving Chinese rose rather than text. other than English or by more than a third. Welsh. This increased ●● Text Relay services from 3,619 cases in the and British Sign previous year. In total, Language videos. we communicated in ●● Information in alternative 50 languages. formats such as large print, Braille and on CD/DVD. There is more information about our access and inclusion work in the chapter called “who complained to us”.
32 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 33 the complaints we received
languages we worked in other than English and Welsh the complaints we received we the complaints
•Polish 25.5% •Urdu 4% •Spanish 8% •Turkish 3.5% •Chinese 7.5% •Punjabi 3% •French 6% •Russian 3% •German 5.5% •Italian 2.5% •Portuguese 5.5% •other European languages 8.5% •Bengali 4.5% •other languages 13%
32 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 33 the complaints we received
new cases referred to our casework teams % of cases where the business had not sent their customer a final response within eight weeks Once a consumer has In 12% of the complaints complained to a business we took on formally last 12% 2014 – and tells us they’re not year, the businesses happy with the way things involved hadn’t issued 16% 2013 have turned out – we ask a final response within 37% 2012 them to complete our eight weeks. Once again complaint form. From this, this is an improvement on 40% 2011 we get the basic details the previous year – and about their complaint – suggests that businesses 31% 2010 and their permission for are making sustained us to look into it. progress in this area. year ended 31 March
If someone phones our We continue to emphasise The complaints-handling helpline we can guide them to financial businesses the rules set by the regulator through the complaint form importance of handling also require businesses to there and then – and send their customers’ complaints tell a consumer – in their it to them to check and carefully, thoughtfully and final response – about return. Once we’ve received promptly – and certainly the consumer’s right to a completed complaint within the timeframe set refer the complaint to us form, we check that the by the regulator. if they’re unhappy with complaint is one we can the outcome. During the This is not just about deal with. If it is, we pass year, 23% of people who “compliance”. it to one of our casework contacted our consumer It is about recognising teams to start looking into. helpline said they heard that handling complaints about the ombudsman Under the regulator’s well is central to good service from the business complaints-handling rules, customer service. they complained to. businesses have up to There is more information In 2013/2014 we eight weeks to send a final about the work we do to Businesses generally tell distributed over a response to a consumer’s support businesses in their customers about million copies of this complaint before the the chapters called “who us by sending them leaflet. We charge consumer can refer the complained to us” and our consumer leaflet, businesses for bulk problem to us. After eight “other work we have done”. your complaint and the supplies – but they can weeks the consumer can ombudsman. Businesses print it for free themselves ask us to step in – even if send this leaflet out with under licence from us. the business hasn’t given their own paperwork, We provide copies free of their response. so it’s important that charge to consumer advice the consumer can see agencies, libraries and it’s different from the community centres – business’s own documents. in a wide range of During the year we made languages and formats handling complaints our leaflet more eye- to meet the needs of catching – as well as different communities. well is central to good working on its readability customer service and accessibility in partnership with the disability charity, Shaw Trust.
34 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 35 the complaints we received
number of new cases the complaints we received we the complaints
During the year the staff Other trends during the on our consumer helpline year included: referred a record 512,167 ●● An increase in the new cases to our casework number of complaints teams for investigation – about payday loans out of the 2,357,374 initial (up 46%) – and more enquiries they received. than triple the number This is the highest number of complaints about of cases consumers “packaged” bank have referred to us in accounts. any year since we were set up in 2000. ●● Fewer complaints about credit cards (down 47%) However, the unprecedented and unsecured loans volumes of PPI complaints (down 19%). we have been receiving have finally started to level ●● Complaints about off. We saw an increase of investments and just 6% in these complaints insurance remaining – compared with a 140% at broadly similar levels increase in the previous to the last two years. year. There is more information about these complaints on page 51. 94,392 127,471 163,012 206,121 264,375 508,881 512,167 110,963 112,923 123,089
2005: 2006: 2007: 2008: 2009: 2010: 2011: 2012: 2013: 2014:
year ended 31 March
34 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 35 the complaints we received
the most complained-about financial products since we were set up
•payment protection insurance (PPI) 46% •mortgage endowments 13% •bank and credit card charges 2% •other 39%
Since we were set up In April 2013 we received in 2000 consumers our two millionth case. have referred a total of Six months later we 2,458,142 cases to us received our millionth – of which 61% have PPI complaint. involved just three issues:
●● mortgage endowments ●● bank and credit card charges
●● PPI
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Aug Jun Apr
36 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 37 the complaints we received
how PPI complaints were brought to us
complaints made on behalf of consumers by •commercial claims-management companies 72% •complaints made by consumers themselves 24.5% complaints made on behalf of •consumers by friends and family 2%
complaints made on behalf of consumers by • professionals (eg lawyers and accountants) 1%
complaints made on behalf of consumers by •free consumer advice agencies (eg Trading Standards and Citizens Advice) 0.5% the complaints we received we the complaints
how complaints other than PPI were brought to us •complaints made by consumers themselves 76.5% complaints made on behalf of consumers by •commercial claims-management companies 8.5%
complaints made on behalf of •consumers by friends and family 7% •complaints made by smaller businesses 3.5% complaints made on behalf of consumers by •free consumer advice agencies (eg Trading Standards and Citizens Advice) 3%
complaints made on behalf of consumers •by professionals (eg lawyers and accountants) 1.5%
For complaints involving or a representative from financial products other a wide range of consumer than PPI, more than three support organisations – quarters of the cases including Citizens Advice were brought by the and local charities. consumers themselves. For complaints involving In a small number of cases PPI, however, a significant consumers asked someone proportion of cases were else to represent them. brought to us by claims- management companies. These representatives There is more information were usually a friend about these companies or family member, on page 39.
36 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 37 the complaints we received
complaints from smaller businesses
•banking complaints 71% •insurance complaints (excluding PPI) 18% •investment complaints 7% •payment protection insurance (PPI) 4%
We can look into complaints We continued to see a wide As in previous years, made by “micro-enterprises” range of products involved we continued to promote – a European Union term in complaints from smaller smaller businesses’ describing smaller businesses. This included: understanding of how we businesses with annual can help with commercial ●● 274 complaints about turnovers of up to two disputes involving financial business protection. million euros and fewer services. To do this, than ten employees. ●● 225 disputes about we worked with trade business banking associations and networks During the year we received charges. (including our own smaller slightly fewer complaints businesses forum), and from smaller businesses – ●● 135 complaints about we featured in a very 4,469 compared with 4,526 interest-rate hedging wide range of specialist in the previous year. products sold by banks. business-to-business However, sole traders and publications. small business owners don’t always register their complaint as a business dispute – perhaps feeling that the issues are personal rather than commercial. small business This is reflected in the fact that the proportion of owners don’t always people who complained to us who said they were register their complaint self-employed or ran their as a business dispute own business – 13% of the consumers who complained to us – was once again far higher than the 1% of complaints formally registered with us as a business dispute.
38 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 39 the complaints we received
types of complaint referred by claims-management companies
•payment protection insurance (PPI) complaints 97% •credit card complaints 1% other types of complaint (including investments, •current accounts and mortgages) 2% the complaints we received we the complaints After falling last year, % of PPI cases referred by claims-management companies it is disappointing that the proportion of 72% 2014 complaints brought to us by claims managers 57% 2013 increased during 2013/2014. 69% 2012 This reflects the high volume of PPI cases we 76% 2011 received during the year. 66% 2010
51% 2009
year ended 31 March
72% of the 399,939 We do everything we can new PPI cases during to make our service as the year were brought straightforward as possible by claims-management to use. And once again this companies (57% during year, we found no evidence the previous year). that complaints brought by a claims manager were any We have continued to tell more likely to be upheld. consumers that they don’t need the help of a claims- Ten claims-management management company to companies accounted bring us a complaint. for 40% of the cases we We look at the facts, handled during the year not at how “professionally” where consumers were a case is presented to us – represented by this type of and we prefer to hear from company. The other 60% of people in their own words. cases involved around 500 other claims-management companies.
38 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 39 the complaints we received
We sometimes have to We work closely with explain to consumers the claims-management that we can’t look into regulator (part of the complaints about claims- Ministry of Justice) and we management companies. pass information onto them The Ministry of Justice has about poor practice we are confirmed that this will seeing in the sector. become the responsibility There is more information of the Legal Ombudsman about our work with other at some point during 2014. regulators in the chapter However, we do everything called “other work we we can to make sure have done”. that claims managers understand how we work – so that our dealings with them are as efficient as possible, and so that their involvement doesn’t we pass on hinder the progress of consumers’ complaints. information about poor For example, in July 2013 we hosted a conference practice we see for the largest claims- management companies to make clear our approach to PPI complaints.
40 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 41 40 the complaints we received annual review 2013/2014 FinancialOmbudsman Service
Financial Ombudsman Service annual review 2013/2014
41 what the complaints were about what the complaints were about
new cases by area of complaint
banking and credit investments and pensions insurance (excluding PPI) payment protection insurance (PPI) new cases in total
65,077 13% 15,938 3% 31,213 6% 2014 399,939 78% 512,167
77,176 15% 19,834
4% 33,172 7% 2013 378,699 74% 508,881
64,234 24% 14,862
6% 27,563 10% 2012 157,716 60% 264,375
65,063 31.5% 15,483
7.5% 20,978 10% 2011 104,597 51% 206,121
71,700 44% 22,278
14% 19,838 12% 2010 49,196 30% 163,012
year ended 31 March
42 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 43 what the complaints were about
new cases by financial product • payment protection insurance (PPI) 78% • complaints about all other financial products 22%
new cases involving financial products other than PPI
• current accounts 17.5% • mortgages 11% credit cards 9.5%
• about were the complaints what consumer-credit • products and services* 7% • motor insurance 6.5% • unsecured loans 5.5% • pensions 4% • buildings insurance 3.5% • mortgage endowments 3% • savings accounts 3% • term assurance 3% • travel insurance 2% whole-of-life policies and • savings endowments 2% • contents insurance 1.5% “with-profits” and • unit-linked bonds 1% • other products 20% *eg hire purchase, debt collecting and catalogue shopping
42 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 43 what the complaints were about
the issues the new cases involved
3% investments and pensions
13% banking and credit
6% insurance (excluding PPI)
78% payment protection insurance (PPI)
44 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 45 what the complaints were about
78% payment protection insurance (PPI)
of which • complaints about sales and advice 99% • other complaints 1%
6% insurance (excluding PPI)
of which • complaints about claims 52% • complaints about sales and advice 31% • complaints about administration 17% what the complaints were about were the complaints what 13% banking and credit
of which • complaints about administration 36% • complaints about charges 23% • complaints about sales and advice 16% • complaints about transactions 10% • other complaints 15%
3% investments and pensions
of which • complaints about sales and advice 64% • complaints about administration 28% • other complaints 8%
44 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 45 what the complaints were about
new cases by financial product year ended year ended year-on-year 31 March 2014 31 March 2013 change
PPI 399,939 378,699 6% ▲
current accounts 19,878 19,560 2% ▲ including complaints about ◆◆ packaged accounts 5,667 1,629 248% ▲ ◆◆ direct debits and standing orders 534 651 18% ▼ ◆◆ business banking charges 225 495 55% ▼
mortgages 12,606 11,920 6% ▲
credit cards 10,472 19,634 47% ▼
consumer credit products and services 7,630 8,470 10% ▼ including complaints about ◆◆ point-of-sale loans 1,418 1,939 27% ▼ ◆◆ hire purchase 1,511 1,621 7% ▼ ◆◆ payday loans 794 542 46% ▲ ◆◆ catalogue shopping 792 950 17% ▼ ◆◆ credit broking 649 711 9% ▼ ◆◆ debt collecting 557 817 32% ▼ ◆◆ debt adjusting 530 484 10% ▲ ◆◆ store cards 466 650 28% ▼ ◆◆ hiring, leasing and renting 291 304 4% ▼ ◆◆ home credit 138 98 41% ▲ ◆◆ credit reference agencies 131 109 20% ▲ ◆◆ debt counselling 95 126 25% ▼
motor insurance 7,190 7,785 8% ▼
unsecured loans 6,310 7,809 19% ▼
pensions 4,361 4,401 1% ▼ including complaints about ◆◆ personal pension plans 1,748 2,207 21% ▼ ◆◆ small self-administered schemes (SSASs) 1,039 697 49% ▲ and self-invested personal pensions (SIPPs) ◆◆ annuities 601 624 4% ▼ ◆◆ SERPS 527 476 11% ▲ ◆◆ free-standing additional voluntary contribution 172 95 81% ▲ (FSAVC) schemes ◆◆ income draw-down 169 189 11% ▼ ◆◆ pension mortgages 95 100 5% ▼
46 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 47 what the complaints were about
new cases by financial product (continued) year ended year ended year-on-year 31 March 2014 31 March 2013 change
buildings insurance 4,095 4,611 11% ▼
savings accounts 3,611 4,967 27% ▼
mortgage endowments 3,573 4,657 23% ▼
other banking services 3,517 3,838 8% ▼ including complaints about ◆◆ debit/cash cards 1,177 1,285 8% ▼ ◆◆ money transfer 952 1,036 8% ▼ ◆◆ cheque clearing 569 686 17% ▼ ◆◆ electronic payment 435 400 9% ▲ ◆◆ safe custody 105 120 13% ▼ ◆◆ foreign currency 94 113 17% ▼
term assurance 3,426 3,572 4% ▼ about were the complaints what
investment-linked products 3,104 4,697 34% ▼ including complaints about ◆◆ investment ISAs 929 1,528 39% ▼ ◆◆ unit-linked bonds 791 1,030 23% ▼ ◆◆ guaranteed-income bonds 419 580 28% ▼ ◆◆ “with-profits” bonds 304 675 55% ▼ ◆◆ film partnerships 201 84 139% ▲ ◆◆ unit trusts 109 165 34% ▼ ◆◆ PEPs 55 132 58% ▼ ◆◆ “structured” products 52 108 52% ▼
whole-of-life policies and savings endowments 2,479 3,241 24% ▼
travel insurance 2,271 2,742 17% ▼
contents insurance 1,771 2,027 13% ▼
income protection 1,439 1,481 3% ▼
home emergency cover 1,387 1,284 8% ▲
commercial vehicles and property 1,301 1,319 1% ▼
portfolio management 1,166 1,449 20% ▼
card protection insurance 1,118 n/a n/a
secured loans 1,053 925 14% ▲
private medical insurance 988 949 4% ▲
●● continued overleaf
46 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 47 what the complaints were about
new cases by financial product (continued) year ended year ended year-on-year 31 March 2014 31 March 2013 change
stockbroking 913 979 7% ▼
critical illness insurance 906 1,370 34% ▼
extended warranty insurance 755 903 16% ▼
pet and livestock insurance 720 830 13% ▼
legal expenses insurance 707 907 22% ▼
roadside assistance 668 490 36% ▲
mobile phone insurance 551 615 10% ▼
personal accident insurance 477 495 4% ▼
building warranty 384 206 86% ▲
derivatives 342 463 26% ▼ including complaints about ◆◆ interest-rate hedging products 135 258 48% ▼ ◆◆ spread-betting 126 148 15% ▼
business protection 274 261 5% ▲
guaranteed asset protection (“gap insurance”) 247 309 20% ▼
caravan insurance 81 79 3% ▲
total number of new cases 512,167 508,881 1% ▲
48 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 49 what the complaints were about
what the complaints were about: insurance insurance
Complaints about insurance PPI accounted for 93% The charts below show – including payment of all the insurance how these complaints were protection insurance (PPI) complaints we received spread across the different – made up 84% of all the – with other insurance types of insurance. new cases we received products accounting for the during the year (81% in the remaining 7%. These are previous year). similar proportions to those we saw in the previous year.
• PPI 93% all insurance •all other insurance-related complaints 7%
• motor insurance 23% • buildings insurance 13% • term assurance 11%
• travel insurance 7% about: were the complaints what • contents insurance 6% • home emergency cover 4.5% income protection 4.5% • insurance commercial vehicle and excluding PPI • property insurance 4% • critical illness insurance 3% • private medical insurance 3% • extended warranty insurance 2.5% • legal expenses insurance 2.5% • personal accident insurance 1.5% pet insurance 2.5% guaranteed asset protection • • (“gap insurance”) 1% • mobile phone insurance 2% • other (including business roadside assistance 2% protection, building warranty • and caravan insurance) 7%
48 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 49 what the complaints were aboutabout: insurance
PPI aside, the number We continue to see During the year we also We also found that by of general insurance disputes where fraud received over a thousand telling a particular home complaints has been is central to the issues complaints about card emergency insurer exactly relatively steady during involved. Fraudulent claims protection policies – what our approach would the year. We haven’t seen present a significant an area where we hadn’t be, complaints about a any major new issues challenge for many had significant involvement specific problem we’d arising, and our approach insurers. But alleging that before. Many of the expected to be referred to in most areas is well a policyholder has claimed consumers who complained us were sorted out much known and published fraudulently is just as to us about card protection earlier – and without on our website. serious a matter. said they wouldn’t have the need for our formal taken out a policy to protect involvement. It is always disappointing Sometimes it’s clear their cards against fraud if to see a case referred to us in the cases we see that Similarly, we have been they’d been told about the where the circumstances an insurer thinks a looking at issues involving automatic legal protection suggest that our usual consumer’s claim is the “auto-renewal” of they already had in relation approach would apply – fraudulent. But rather than insurance policies. to their cards. and the complaint could say so outright, they focus Our aim in this area is have been resolved much instead on what the Our work with insurers to help insurers prevent earlier if that approach consumer hasn’t disclosed over the year focused on problems themselves by had already been followed – and reject the claim what can be learnt from being clearer with their by the business. straight away. complaints – and how customers about how insurers can help improve auto-renewal works. During the year we have We have worked with customer service in the been working closely insurers to explain our future. with the insurance sector approach to these sorts to help improve their of cases. We take the view For example, as we understanding of the that a consumer should highlighted in the way we look at insurance be given an opportunity to December 2013 issue complaints – including, explain any inconsistencies of ombudsman news, for example, issues like in their account of what the proportion of cases “non-disclosure” and fraud. happened. After all, there we upheld against one may well be an innocent particular mobile phone explanation. People can insurer halved – once it make mistakes, and had acted on our feedback insurers are not always on its handling of customer clear in what they’re asking complaints. This is an the consumer to tell them. area where we continue to uphold a high Some insurers (and proportion of cases in indeed solicitors) seem the consumer’s favour. surprised that fraud must be established to a high degree of probability. But that is the law – and we must take the law into account when we our aim is to help insurers prevent problems make our decisions. by being clearer
50 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 51 what the complaints were aboutabout: insurance
PPI insurance
2014 399,939 2013 378,699 2012 157,716 2011 104,597 2010 49,196
year ended 31 March
In our last few annual However, we know that And we’ve worked hard reviews we have reported the challenges of PPI to let businesses and receiving unprecedented will be with us for some consumers know what volumes of new PPI considerable time to come. they can expect to happen. complaints. This year is In total we’ve now received This has included: no different. Once again, more than one million ●● A section on our website we received more PPI PPI complaints – and we called “your PPI case with complaints than ever received two thirds of those us: what’s happening?” – before. In 2013/2014 during the last 18 months. with updated FAQs consumers referred We’ve spent the last two and videos. 399,939 new PPI complaints years increasing our to us – a slight increase ●● A regular e-newsletter case-handling capacity of 6% on the number in to people who have
significantly. During about: were the complaints what the previous year. signed up for updates 2013/2014 we recruited on PPI-related At its peak last year nearly 1,000 new developments in general. we were receiving more adjudicators – who joined than 12,000 new PPI the 1,000 adjudicators ●● Seminars for smaller complaints every week. we recruited during the businesses and claims In recent months this has previous year. This has managers to help them fallen to around 6,000. doubled the size of the better understand After consulting businesses ombudsman service. the ombudsman’s and other stakeholders, We’ve also invested in approach to handling our current plans assume the support services and PPI complaints. that new complaint volumes other functions that keep ●● A ”behind the scenes” will continue to fall over our organisation running tour of our offices for the coming year. efficiently. people waiting for us to This investment has deal with their complaint helped us resolve 389,730 – for them to see at first complaints – double the hand the efforts we’re number we settled in the making to resolve cases our aim is to help insurers prevent problems previous year. But even fairly and quickly. so, the scale of the PPI by being clearer challenge means we ended the financial year with a stock of 400,000 PPI cases. This means many people are waiting far longer than we’d like.
50 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 51 what the complaints were aboutabout: insurance
Our ability to resolve companies. These are Where we’ve seen a PPI cases efficiently is commercial companies financial business or claims heavily dependent on who charge a consumer for manager doing things that how businesses and bringing us their complaint are unsatisfactory or simply claims managers – something we know unreasonable, we have handle complaints consumers can do just as referred the issues to the in the first place. easily and effectively for relevant regulator. themselves. Once again, the proportion During the year we’ve of PPI cases we upheld in Some claims managers been finding that a favour of the consumer have adapted their higher proportion of PPI varied significantly from procedures to better complaints are raising business to business – represent the interests issues about the way the from 2% to 97%. Although of their clients. But it’s business calculated redress we’ve seen encouraging disappointing that we still – rather than about the signs that some businesses see examples of other original mis-selling of the have improved the way claims managers making PPI policy. they handle PPI cases, we little effort to set out the We’ve also seen more are still concerned that not details of their client’s cases where the business all are following our well complaint – and supplying is disputing whether we established approach – only general information can look at the complaint which was upheld by the rather than specific details in the first place. courts three years ago. about the case in hand. We know that PPI is likely to We’ve continued to see a To help improve this raise increasingly complex substantial proportion of situation, we issued issues like these over the PPI complaints referred to guidance jointly with coming years, and we have us by claims-management the Ministry of Justice, plans in place to make sure the Financial Conduct we’ll be able to deal with Authority, and the Financial these issues effectively. Services Compensation we’ve worked hard Scheme. This guidance – which is available on our to let businesses and website – sets out what is expected in complaints that consumers know what they are represented by a paid- can expect to happen for third party.
52 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 53 what the complaints were aboutabout: insurance
motor insurance complaints insurance
2014 7,190 2013 7,785 2012 7,264 2011 5,784 2010 5,451
year ended 31 March
We see more complaints During the year we about car and motorcycle continued to see insurance than any other complaints about delays area of insurance – except and poor communication for PPI. And we find in the when a consumer made consumer’s favour in a a claim to their insurer. relatively high proportion Unnecessary delays are of these cases. This is why frustrating enough for a we’ve continued to work consumer. But it’s even with motor insurers during more inconvenient for them the year to make clear how if their insurer continues to we approach these cases. insist on its right of appeal Our aim is to help insurers – and an ombudsman has resolve their customers’ to make a final decision. what the complaints were about: were the complaints what complaints themselves – We will continue to work without the need for the with insurers to help them ombudsman’s involvement. better understand the impact that unnecessary Disappointingly, we delays can have on the still see a lot of insurers day-to-day lives of their continuing to make forceful customers. arguments in complaints involving “non-disclosure” – even though our long- standing approach is now reflected in the Consumer Insurance (Disclosure and Representation) Act 2012, which came into effect we continued to see in April 2013. A detailed note about the Act and our complaints about delays approach has been on our and poor communication website for the past year.
52 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 53 what the complaints were aboutabout: insurance
complaints about buildings and contents insurance
buildings insurance contents insurance 2014 4,095 1,771 2013 4,611 2,027 2012 4,556 2,089 2011 3,469 1,697 2010 3,437 1,863
year ended 31 March
During the year we’ve Better communication Good communication continued to see problems would also help consumers will be increasingly arising where insurers when their claims are important as insurers start instruct someone else to turned down. In the work on the claims arising act on their behalf. complaints we see, we from the recent flooding We’ve seen complaints often find that the insurer and storms. Keeping where insurers have failed hasn’t explained clearly consumers fully informed to take responsibility for exactly why the claim was can help avoid unnecessary the actions (or inaction) rejected. In our experience, problems during the of their agents – for not many consumers months of drying-out and example, where understand technical terms disruption that these investigations by loss like “insured peril”. And claims inevitably involve. adjusters appointed by in many cases we see, a insurers haven’t been as straightforward and timely thorough as they should explanation could have have been. prevented a complaint from arising in the first place. In these cases, the loss adjusters often tell us that they received poor instructions from the insurer. Many problems not many consumers could be prevented by insurers being very clear understand technical terms from the outset on the scope of the work they like “insured peril” want the loss adjuster to carry out.
54 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 55 what the complaints were aboutabout: insurance
travel insurance complaints insurance
2014 2,271 2013 2,742 2012 2,431 2011 2,536 2010 2,003
year ended 31 March
Travel insurance policies In these situations, insurers Alcohol continued to are often complex products must be clear about what feature prominently in – and consumers tend they expect the consumer travel insurance complaints to buy them when their to disclose – bearing during the year. In many attention is more focused in mind, of course, that cases we saw, insurers on their holiday. We know someone can only disclose had clearly assumed the travel insurance sector what they actually know. immediately that certain is keen to simplify their Not everyone has details injuries must have been products and we continue of their relatives’ health alcohol-related. We know to share our insights conditions. When we that some overseas in this area. look into these cases, we hospitals can be un- consider very carefully what cooperative where blood During the year we again the consumer knew about tests are concerned. But saw a significant number the health of the relative in in the absence of evidence
of complaints involving about: were the complaints what question at the time they from blood alcohol tests, “pre-existing medical took out the policy. we still look to see what conditions” – especially evidence the insurer in relation to people relied on when they made who weren’t actually their decision – including travelling. Consumers can evidence from witnesses be surprised and upset to and CCTV footage where find that they might not be appropriate. able to claim for a holiday they had cancelled because of a relative’s medical condition. someone can only disclose what they actually know
54 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 55 what the complaints were aboutabout: insurance
health and medical insurance complaints
2014 3,333 2013 3,800 2012 2,295 2011 1,754 2010 2,026
year ended 31 March
Complaints involving Other complaints arose protection products because policies hadn’t continued at high levels kept pace with the during the year – largely increased costs of medical as a result of consumers fees – and the limits in mistaking some of these the policy had restricted “protection” policies a consumer’s access to with payment protection medical care. insurance – PPI. Claims involving mental Some complaints involved health issues still make consumers who had made a up a significant part of claim – and were surprised the medical insurance to find that the cover their cases we see. We policy offered had changed recognise that it can be since they first took it out. difficult in these cases for These cases often involved consumers to supply the private medical insurance kind of evidence that some policies, where cover for insurers want to see. different conditions can Guidance from the National change from year to year. Institute for Health and Care Excellence (NICE) says that most patients’ treatment can be managed by their own GP. But this isn’t always recognised or reflected in the way that insurers handle claims involving mental health. There’s more information elsewhere in this annual review about the work we do to help vulnerable consumers – and to make sure we handle their cases sensitively.
56 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 57 what the complaints were aboutabout: insurance
what the complaints were about: banking and credit
Of the complaints we received during banking and credit banking 2013/2014, 65,077 involved banking and credit – 13% of our total workload. This chart shows how these complaints were spread across different products and services. banking and credit
• current accounts 30.5% • mortgages 19.5% credit cards 16%
• about: were the complaints what • consumer-credit products and services* 12% • unsecured loans 10% • savings accounts 5.5% • secured loans 1.5% • other banking services 5%
* eg point-of-sale loans, hire purchase and catalogue shopping
56 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 57 what the complaints were aboutabout: banking and credit
current account complaints
2014 19,878 2013 19,560 2012 14,595 2011 19,944 2010 25,252
year ended 31 March
Many of the current To decide whether an “Packaged” accounts can We also saw a growing account complaints we saw account provider has be a good option for some number of complaints during the year involved treated a customer fairly, consumers, saving them from consumers who said consumers who told us we look at whether time and money – as long that their accounts had that they were in financial they have considered as they know what the been “upgraded” without difficulty – but that their the consumer’s overall benefits are, whether they their knowledge – or who account provider hadn’t position. For example, if the can use them and what said they were told they treated them fairly. consumer has an overdraft, they have to pay for them. had to have a fee-paying a loan and a credit card account. For these reasons Where a consumer is But from the cases we from the same provider, we continue to find in the already in genuine see, we know that these we would expect the consumer’s favour in a high financial difficulty, accounts aren’t right for provider to have taken all proportion of these cases. businesses are expected everyone. We continued of these into account in any to treat them positively to see complaints from However, over the course proposal they had made to and sympathetically. consumers who felt of the year we have seen the consumer. What that means in that they’d been sold a an encouraging practical terms will Cases involving financial “packaged” account that improvement in the way depend on the particular difficulty often require didn’t meet their needs – or some banks investigate circumstances of the case. a mediated settlement. that they hadn’t been given and deal with these But it could mean refunding This relies on both sides enough information about. complaints. By looking at or stopping interest and communicating openly and our decisions and trying charges, agreeing payment honestly – and working to align their approach to breaks or repayment plans, constructively with us and ours, they make it more restructuring debt with each other. likely that a complaint can – or a combination be resolved without the We continued to see a of these things. need for our involvement. significant increase in Similarly, where a the number of complaints consumer is on the verge about “packaged” bank of falling into financial accounts – with 5,668 we’ve seen an difficulty, we also look cases referred to us during to see how sympathetic the year. These accounts encouraging improvement and positive the business usually charge a consumer in how some banks has been towards them. a regular fee in return for a Disappointingly, range of insurance products investigate complaints some businesses appear and non-insurance benefits to take the view that this – for example, mobile phone duty doesn’t start until insurance, car breakdown a consumer is actually cover or preferential “in default”. borrowing rates.
58 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 59 what the complaints were aboutabout: banking and credit
Disputed transactions We regularly hear from The sheer number of continue to account for consumers who have consumers affected by a large proportion of the spotted a transaction on these sorts of IT failures complaints that consumers their account that they don’t – and the immediacy of banking and credit banking refer to us – both in recognise – and who think the problems they create relation to credit cards they may have been a victim – mean that banks can be and current accounts. of fraud. However, in these inundated with complaints The current account cases it often turns out that in a short space of time. complaints continue to these payments have been This can make it difficult involve cash machine made legitimately under for them to give individual withdrawals, retail a “continuous payment complaints the level of transactions made using a authority”. These are often attention needed to put debit card, and payments used to pay for magazine things right satisfactorily. made using online or phone subscriptions, club To help them do this, banking. Although some memberships, internet we continued to build on current account providers services or a short term loan. the streamlined approach are getting information to we had developed during During the year we us faster, others are still the previous year in continued to see confused about which response to similar complaints relating to rules are relevant – and large-scale IT failures. technical failure – with how these rules apply in IT glitches at banks By working closely with the individual cases. temporarily preventing banks involved, and relying During the year we also large numbers of people less on the requirement for received a significant from accessing their money written communication and number of complaints or using their cards. paperwork, we can focus on about scams involving putting things right for their In many of these cases, current accounts. These customers as a priority. the problems that fraudulent activities can about: were the complaints what consumers had be very sophisticated and experienced were are constantly evolving. short-term and quickly Most recently we’ve seen put right. Typically, cases involving “vishing” – consumers hadn’t many consumers where a fraudster phones a been able to withdraw consumer and tricks them cash for a few hours, lost significant amounts into handing over their or use their card when security details or their of money they were out shopping. card (sometimes both). Many of those consumers But in a smaller number who did as they were of the cases we saw, there asked – thinking they were were more far-reaching dealing with their bank or consequences – especially the police – lost significant where IT systems were amounts of money. unavailable for longer periods. In the most While consumers clearly extreme cases, technical need to be alert to the failures had led to delays possibility of fraud, in paying for medical we always consider what treatment – or left people the account provider unable to pay funeral themselves could have done expenses. to protect their customer.
58 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 59 what the complaints were aboutabout: banking and credit
complaints about mortgages
2014 12,606 2013 11,920 2012 9,537 2011 7,067 2010 7,469
year ended 31 March
Following last year’s 25% During the year we also However, we are During the year we increase, complaints about received a significant increasingly finding that have received fewer mortgages and second- number of complaints the consumers involved complaints about “porting” charge loans remained involving changes to the have left it to a very late (transferring a mortgage to at a high level during the interest rates on standard stage before seeking another property). We have year. It’s disappointing variable-rate mortgages help for their financial also seen fewer complaints that we continue to receive and tracker mortgages. difficulties. And because about the decision by a so many complaints These changes had we can’t reverse a lender whether or not to about straightforward affected both residential repossession, we are offer a mortgage. administrative issues and buy-to-let customers. limited in how we can However, we have seen a – as well as complaints Although under the put things right for the small but worrying number where the lender hasn’t “jurisdiction” rules that consumer – even if we of cases involving the identified what the problem apply to our service agree the business hasn’t decisions that lenders have really is, or hasn’t taken we’re not able to look at treated them fairly. made – for example, to the time to understand the complaints about the sale This reluctance to admit “call in” borrowing or not impact the situation has of buy-to-let mortgages to being in financial to vary the terms of had on their customer. by intermediaries, hardship is a trend we’ve lending. In some cases we can consider complaints We again saw a small noticed across all socio- these decisions hadn’t about buy-to-let when they but steady number of economic groups. We are been made legitimately involve lenders. complaints about mindful – and encourage – and they had serious interest-only mortgages. We continued to see businesses to recognise consequences for the lives Most of these complaints a large number of – that a complaint about and livelihoods of their came from consumers mortgage-related an apparently less urgent customers. who were concerned complaints involving issue like an interest that they’d been given consumers who were rate rise could indicate inappropriate advice experiencing financial that a consumer is in real when they originally took difficulty – but we saw difficulty. This year, we out their interest-only no increase during the continued to work with mortgage. year in disputes involving debt organisations – repossession. such as Stepchange and Relatively few complaints National Debtline – to raise came from consumers who With interest rates consumers’ awareness of had come to the end of forecast to rise in the how we could help them. their mortgage contract and future, it is likely that more couldn’t repay the capital. people may find themselves From what we have seen, struggling – and at that many lenders seem to have point we may see more been working constructively mortgage complaints with customers who involving hardship. had found themselves in this position. 60 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 61 what the complaints were aboutabout: banking and credit
credit card complaints
2014 10,472
2013 19,634 and credit banking 2012 19,183 2011 17,466 2010 18,396
year ended 31 March
As in previous years, we During the year we received To help us deal with received a significant fewer complaints about complaints about disputed number of complaints “default charges” on credit transactions more quickly, involving section 75 of cards. These include charges we have encouraged some the Consumer Credit Act that businesses may add to credit card providers to 1974. Under section 75, an account if the consumer improve their processes – if the supplier of goes over their credit limit, so we can get information goods or services has makes a late payment or from them much more misrepresented them misses a payment. efficiently. This helps us – or breached the contract resolve these complaints We also saw a significant – the credit card provider at a much earlier stage. fall in the number of shares equal responsibility complaints involving credit But we still see too many with the supplier. card charges brought by cases where a credit card The complaints we claims managers. This may provider doesn’t seem saw during the year reflect the work that a to have understood that reflected the wide range number of card providers different rules apply where of purchases that people have done to be clearer unauthorised transactions what the complaints were about: were the complaints what make using credit cards – about the way they calculate are made using credit cards from large ones like solar and apply their charges. rather than debit cards. panels, timeshares and And different rules again However, we continued holiday clubs, to smaller apply where a credit card to see a substantial ones like concert tickets account is used – but not number of complaints and household appliances. the card itself. This is involving disputed credit why we continue to work We continue to see section card transactions. These closely with card providers 75 complaints where complaints can often to make sure the rules the card provider hadn’t involve significant sums are fully understood and considered the consumer’s of money – and it can take properly applied. complaint properly – extensive work to establish or hadn’t fully understood what actually happened the extent of their where the evidence is not obligations under section always clear. 75. This often led to unnecessary delays and inconvenience for their customer.
60 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 61 what the complaints were aboutabout: banking and credit
complaints about consumer credit
2014 7,630 2013 8,470 2012 7,416 2011 7,250 2010 6,329
year ended 31 March
Since April 2007 we have During the year we received Consumers also referred In other cases – even where covered a range of credit- 46% more complaints complaints to us where the minimum payment did related complaints – involving payday lending their difficulties had been cover both interest and including consumer credit than in the previous year. caused by the payday capital – we found that provided by all types of We continued to hear lender’s use of “continuous some lenders hadn’t made lenders, as well as other from many consumers payment authorities”. consumers aware of the regulated consumer-credit that the short-term loans In some of these cases the consequences of paying activities such as hire they had been offered lender’s repeated attempts only the minimum amount purchase and catalogue were unaffordable. And in to take payments meant (as they are required shopping. From April 2014 many cases, we found that the consumer faced a to do by the regulator). responsibility for regulating the lender hadn’t taken spiral of further charges In some of these cases the consumer credit was adequate steps to assess – and was left without documentation was poor transferred from the the consumer’s financial enough money to live on. – and didn’t clearly set out Office of Fair Trading (OFT) position when the loan was the total cost of borrowing During the year we have to the Financial Conduct taken out. In particular, to the consumer. seen cases involving Authority (FCA). we saw cases where the payday lenders offering We also continued to lender clearly did not have “running account” credit receive complaints about an adequate credit-scoring (as opposed to “fixed” debt collecting – although process in place. credit). In these cases the number of these cases the lender had quoted a fell by a third during the minimum payment that year. In some of these would only cover the cases we were concerned interest accruing on the about the approach taken loan – meaning that the by the debt collector – and consumer wouldn’t repay decided that the way in we saw cases where any of the capital if they which the debt had been only made the minimum pursued amounted to the lender clearly did not have payment. harassment. We also saw a number of complaints an adequate credit-scoring involving debt collectors process in place chasing the wrong person for the debt.
62 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 63 what the complaints were aboutabout: banking and credit
Consumers referred a In those cases, we reminded significant number of the providers about their complaints to us about responsibilities under loans they had taken out to the law – and explained banking and credit banking buy new and used vehicles. that the existence In most of these cases, of a warranty did not the consumer felt that the affect the consumer’s vehicle had been defective statutory rights. in some way and they had In complaints involving approached the lender debt management, we to put things right under continued to see cases section 75. where debt managers had As we have highlighted in failed to give consumers previous annual reviews, clear information about when we look into these the fees and charges they types of complaint, we had applied. In particular, often find motor credit we came across situations providers reluctant to where the consumer accept any liability. During hadn’t been told that initial the year some credit payments wouldn’t be used providers still tried to insist to reduce their debt – but that the consumer had to would instead go towards sort things out themselves the debt manager’s own directly with the garage. fees and charges. In some cases, for example, In other cases, we the lender had initially discovered that the debt refused to consider the manager hadn’t passed on what the complaints were about: were the complaints what consumer’s complaint, the consumer’s payments saying that the consumer to the people they owed should make a claim under money to. Where we saw the car warranty rather this happen, we informed than against them. the regulator.
we continued to see cases where debt managers had failed to give consumers clear information
62 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 63 what the complaints were aboutabout: banking and credit
complaints about unsecured loans
2014 6,310 2013 7,809 2012 6,262 2011 5,820 2010 6,285
year ended 31 March
We continued to see In these cases we look In other cases, individuals In investigating these significant numbers of at the extent to which had acted as guarantor for cases, we often found that complaints from borrowers the lender involved their borrowing taken out by the the bank involved hadn’t – both individuals and customer in discussions at small company they ran. given the small business small businesses – who an early stage – providing These loans were often enough information to were having difficulty an opportunity to talk covered by the Enterprise make an informed choice making loan repayments. honestly and constructively Finance Guarantee scheme. about taking out the Lenders in these cases about the possible ways Many guarantors were product. generally seemed forward. evidently unclear about Our aim in these cases is to be aware of their the detail of this scheme We also continued to see to put the small business obligations to treat these – and we decided that complaints relating to – as far as possible people positively and some lenders should have “personal guarantees” – in the position they sympathetically. explained far more clearly on borrowing. In some of would be in if they had how the scheme operates. However, what amounts to these cases, the person been given sufficient “positive and sympathetic” bringing the complaint had Interest-rate hedging information at the outset. treatment will vary from guaranteed a loan taken products continued to Sometimes we may decide case to case – so lenders out by a family member. feature in a small number of that the business wouldn’t need to be flexible and We had to remind lenders the complaints we received have taken out a hedging pragmatic. A standardised in a number of cases that during the year. The cases product at all. In other approach – with a rigid they need to ensure often involved large amounts cases we decide that they process and limited options guarantors fully understand of money and were usually would have taken out a – is unlikely to achieve a the nature of the commitment very complex. As well hedging product – but of satisfactory outcome. they’re taking on. as cases where hedging a different type or for a products were sold shorter term. alongside a loan, we also These cases involve saw cases where a form of complex situations and hedging was “embedded” entrenched positions – within the loan. we often found that the bank often made worse by the These complaints were bank taking an overly- involved hadn’t given the small usually referred to us by legalistic approach. This is small businesses, who why a disproportionately business enough information to told us that the products high number of these they had been sold were disputes could only be make an informed choice unsuitable for their settled by an ombudsman circumstances – and that making a final decision. they hadn’t been made aware of the potentially very high costs of ending the arrangements early.
64 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 65 what the complaints were aboutabout: banking and credit
complaints about savings accounts
2014 3,611
2013 4,967 and credit banking 2012 4,286 2011 4,783 2010 5,033
year ended 31 March
During the year, interest In some of these cases we rates on savings accounts found that account providers have remained at hadn’t acted in line with historically low levels. the relevant regulations. Because of this, many These regulations say providers have continued that an account provider to offer accounts with needs to decide whether promotional interest rates a change in interest rates that apply only for a limited is “material” – and if it is, period. The details of these they need to notify their accounts are not always customer personally. as straightforward as they To decide whether the seem – and in many of the change is “material”, complaints we decided that account providers should the account provider hadn’t consider both the balance explained things clearly of the account and the size enough to their customer. of the rate change. what the complaints were about: were the complaints what We continued to see a Some account providers small number of complaints who hadn’t done this from consumers who felt argued that they had acted they should have been in line with “industry personally notified when guidance”. But we said that the interest rates on their they should have acted in savings accounts were line with the regulations. reduced. We upheld a significant proportion of these cases.
64 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 65 what the complaints were aboutabout: banking and credit
complaints about other banking services
2014 3,517 2013 3,838 2012 2,955 2011 2,733 2010 2,987
year ended 31 March
During the year we Many of the consumers who This means that if, for continued to see complained about these example, a consumer complaints about issues had thought their makes a mistake typing “e-money” – usually account offered them the in an account number – involving pre-paid same protection as a bank and there is, coincidentally, accounts that consumers account or a credit card. But an account with that had used online. Most of this isn’t the case. Many number at the same these disputes had arisen protective features don’t branch – then the money because of administrative apply to these accounts will go into the wrong errors. Other complaints – and different e-money person’s account. related to terms and providers have different The UK Payments Council’s conditions – for example, terms and conditions. guidance says that when terms that had allowed Complaints about the consumers make a payment the provider to freeze “faster payments service” they should be shown a the consumer’s e-money continued to feature in short, prominent warning account. our work during the year. that only the account Consumers also These payments are number and sort code – complained to us that almost instant and there and not the account name they’d withdrawn money are limited things that can – will be used to process overseas from their pre- be done to put a mistake the payment, and that paid account – and felt right. This led to a number a mistake could lead to that their account provider of disputes being referred delay or loss. We regard hadn’t told them that to us where consumers had this approach as good a fee would apply. made a mistake with the industry practice – and we Other consumers were relevant account number take it into account when unhappy that the exchange or sort code details – and we decide the outcome of rate that had applied money had been sent to the these cases. to the currency they wrong account. We have also continued to withdrew overseas was When payments are made see disputes during the year less advantageous than online, they are allocated to about powers of attorney. the rate that had applied an account using only the Typically the complaints when the money was sort code and the account involved problems that loaded into their account. number that the consumer arose when someone who provides. There is no check had been given power of against an account name. attorney by the account holder had tried to register it with the bank.
66 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 67 what the complaints were aboutabout: banking and credit banking and credit banking
Other consumers As in previous years, Consumers also referred complained to us about we also saw a number of complaints to us during the problems they had faced complaints involving stolen year about cheques that when they later tried to or counterfeit cheques. had been intercepted by access the account – or In some cases consumers fraudsters and paid into obtain information – under were given these cheques accounts with other banks. the power of attorney. in payment for goods they We are usually able to deal had sold through classified with complaints about this We continued to see adverts. In other cases type of problem – even if examples of bank branch consumers told us that the consumer was not a staff who had dealt the cheques had been customer of the bank into nervously with someone deposited in their accounts which the fraudster had who held power of – and the money later paid the cheque. attorney for their withdrawn – without their customer – and who knowledge or consent. could have benefited from more in-depth These cases are often
knowledge about complex – and we about: were the complaints what powers of attorney. sometimes need to obtain information about the In some cases we found that accounts of third parties bank staff had assumed that appear to be connected – wrongly – that granting to the transaction. or registering a power of attorney can be effective only if the “donor” (the consumer who has given someone else power of attorney for them) no longer has mental capacity to deal with their own affairs.
66 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 67 what the complaints were aboutabout: investments and pensions
• mortgage endowments 22.5% whole-of-life policies and • savings endowments 15.5% • personal pension plans 11% investments portfolio management 7.5% and pensions • small self-administered schemes (SSASs) • and self-invested personal pensions (SIPPs) 6.5% • investment ISAs 6% • stockbroking 6% • unit-linked bonds 5% • annuities 4% During the year we received This chart shows how SERPs 3.5% 15,938 complaints about investment and pension- • investments and pensions. related complaints spread guaranteed-income bonds 2.5% This represented 3% of the across different products • total number of new cases and services. derivatives (including interest-rate hedging we received during the year • products and spread-betting) 2% – a similar proportion to the previous year. • “with-profits” bonds 2% other (including unit trusts, “structured” • investments and income drawdown) 6%
68 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 69 what the complaints were aboutabout: investments and pensions
complaints about mortgage endowments
2014 3,573 2013 4,657 2012 3,267 2011 3,048 investments and pensions investments 2010 5,400
year ended 31 March
In last year’s annual review For many people referring Those people who didn’t we reported that the complaints to us over act are now finding that number of complaints we the last few years, the it’s too late for them to received about mortgage practical difficulties caused complain about the sale endowments had increased by mortgage “shortfalls” of their policy. We can by a substantial 43%. only started to bite as intervene only if there is no This year complaints fell endowment policies they evidence that the consumer by 23% – but the number had taken out in the late was ever told about the still exceeded the level of 1980s – to repay 25- time limit. However, in most new cases in 2011/2012. year mortgages – began cases businesses can show to mature, usually with us that that they wrote At the peak of complaints disappointing returns. to customers about the about mortgage time limits. endowments in 2005, We can’t look at the we were receiving up to majority of complaints 1,500 cases a week. like this because the then This followed major regulator – the Financial publicity campaigns to Services Authority – set make consumers aware time limits on complaining that their endowment during the 2000s.
policy might not perform This prompted many about: were the complaints what well enough to pay off their consumers to take action mortgage. In 2005 these over any potential shortfall complaints represented they’d encounter when 63% of our total workload. their policies matured. In 2013/2014 that figure Those people who took was just 0.7%. action – and whose policies had been mis- sold to them – received compensation.
68 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 69 what the complaints were aboutabout: investments and pensions
complaints about whole-of-life and term assurance During the year we Most of the complaints Where we are satisfied received significantly fewer we received involved that the consumer hadn’t complaints about whole- “reviewable” whole-of- been adequately warned of-life policies. This may life policies – where the that a review might lead be because of the work business carries out a to these kinds of changes, we have done with claims review of the policy some we generally uphold the managers – encouraging years after the consumer complaint. them to establish more took it out. If the review We continued to see precisely the grounds on shows that the business’s relatively high levels of which a complaint might be original assumptions complaints about term referred to us on behalf of – particularly in relation assurance during the year. a consumer. And as a result to investment returns This may reflect the fact of this we have had far – haven’t been met, that people continue to fewer cases referred to us they can reduce the confuse term assurance that have very little chance consumer’s cover or say with PPI – and we find that of being upheld. that the premiums need similar arguments are used to increase. in complaints about these types of product.
complaints about pensions
2014 4,361 2013 4,401 2012 3,454 2011 2,706 2010 3,594
year ended 31 March
We received slightly fewer In last year’s annual review However, not all pension So it’s not surprising complaints about pensions we reported that a financial complaints involve large that some may be more during the year – 4,361 business was seeking sums of money. We also inclined to pursue a cases compared with 4,401 clarification from the Court see complaints from complaint as far as they in the previous year. of Appeal on whether consumers whose pensions can, if something goes Some pension-related a consumer who has are much smaller – and wrong. These complaints complaints involve large accepted an ombudsman’s the issues are just as can be among the most amounts of money. decision can then go on concerning for the people legalistic and hard-fought Although we can now to pursue the business for involved. Whatever the that we see. tell a business to pay a further compensation. sum of money at stake, maximum of £150,000 to In February 2014 the Court most people rely on their an individual consumer of Appeal ruled on this pension to meet their needs – for new complaints we matter – and it is now very when they retire. received after 1 January unlikely that a consumer 2012 – we have seen can do so. complaints that involve significantly more money than this.
70 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 71 what the complaints were aboutabout: investments and pensions
During the year 601 Widespread concern about These complaints usually complaints involved these kinds of issues is came from consumers annuities – the regular now being addressed by who had been looking for annual income a consumer the government following better returns than they receives as a pension when announcements in the could achieve through more they retire. Because life March 2014 Budget. conventional investments. expectancy has improved But the consequences of
In the pension-related and pensions investments significantly – and investing in some of these complaints referred to us, interest rates have been higher-risk funds can be we look to see whether consistently low in recent extremely serious. We find the business has provided years – many consumers in the consumer’s favour in consumers – whatever referring complaints to us a relatively high proportion their circumstances – with are unhappy to find that of these cases. clear information to make they’re being offered a sure they understood the much smaller annuity than options open to them. they’d expected. During the year we saw A consumer’s decision to a significant increase in take an annuity is crucial the number of complaints – not least because they from consumers who had can’t change their mind taken out self-invested about it later on. Yet we do personal pensions (SIPPS). find that many consumers Many of these complaints take a pension from their involved advice to invest original provider without in “unregulated collective shopping around to see if investment schemes” they can get a better deal (UCIS) within a SIPP. somewhere else.
complaints about investment-linked products
2014 3,104 about: were the complaints what 2013 4,697 2012 3,308 2011 3,784 2010 6,329
year ended 31 March
When markets are relatively However, we saw significantly UCIS complaints often buoyant, we tend to receive more complaints involving raise difficult jurisdictional fewer complaints about “unregulated collective questions about whether what might be called investment schemes” we can even look into them “conventional” investments (UCIS) and similar higher- – particularly where the – and this was the case risk investments. complaints involve complex during the year. This might be because, relationships between despite better performing businesses and their markets generally, some of appointed representatives. these funds have not done so well.
70 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 71 what the complaints were aboutabout: investments and pensions
In some cases we have The disputes we see in this The “suitability” of During the year we’ve seen, representatives area are often complex investments remained also seen a disappointing appear to have acted and hard-fought. We often the main cause of the number of cases involving outside the authority find that the businesses problems we saw across straightforward matters given to them by the involved employ lawyers to all complaints in this like administrative errors business – which has left argue their case tenaciously area – including disputes and delays. We have also consumers unprotected. on their behalf. Some of involving UCIS. With started to see a small The consequences of an these businesses appear interest rates still at a number of complaints inappropriate investment not to have understood historic low, we saw about fees, charges and in an “exotic” fund can that the ombudsman isn’t complaints from consumers “ongoing commission”, be serious. We have seen the same as a court – and who had sought better following the increased cases where consumers that although we must take returns. But this had transparency of these have lost all the money the law into account, our exposed them to riskier arrangements as a result they invested. decisions are based on investments than they of the regulator’s Retail what we believe is fair and really wanted – with more Distribution Review (RDR). reasonable in the individual money at stake than they circumstances of each case. could afford to lose.
complaints about stockbroking and portfolio management
2014 2,079 2013 2,428 2012 1,842 2011 2,267 2010 2,474
year ended 31 March
In last year’s annual about increases in dealing The increase may reflect review we reported charges. Our long-standing the fact that certain tax that complaints about approach to resolving benefits associated with stockbroking and portfolio these sorts of problems film partnerships have management had gone up is published in the online been reduced or removed. by a third. Over the last technical resource on This may have led some year, the volume of these our website, which we consumers to question complaints has declined – encourage businesses to the appropriateness largely because of buoyant refer to and learn from. of their investment. stock market conditions. During the year we We also saw a slight However, it is disappointing saw a marked increase increase in investment- that we continued to see in investment-related related complaints a number of complaints complaints involving film involving carbon trading about administrative partnerships. A significant and enterprise zone matters, delays and proportion of these cases schemes. mistakes in calculations were referred to us on – as well as complaints behalf of consumers by law firms or claims managers.
72 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 73 72 what thecomplaints were aboutabout: annual review 2013/2014 FinancialOmbudsman Service investments andpensions
Financial Ombudsman Service annual review 2013/2014
73 how we dealt with the complaints how we dealt with the complaints
total number of cases we resolved how we resolved the cases During the year we resolved The approach we take to over half a million complaints. resolving complaints is This is twice the number largely determined by the we resolved during the individual facts of each previous year – and is by case – and by the level far the highest number of of formality needed. complaints we have settled We were set up to resolve in any year since we were complaints informally. set up in 2000. So we aim to get both sides to agree at an early stage to the views or informal settlements that our adjudicators suggest. But more complex or sensitive disputes often require detailed investigations and lengthy reviews. This can include an the complaints with dealt we how appeal to one of our panel of 234 ombudsmen for a final decision – as the last stage of our process.
cases settled by our adjudicators 91,739 76,704 90,908 99,699 518,778 104,831 105,275 155,591 487,749 164,899 222,333 223,229 147,434 201,793 198,897 119,432 111,673 113,949 166,321
2004: 2005: 2006: 2007: 2008: 2009: 2010: 2011: 2012: 2013: 2014: 2007: 2008: 2009: 2010: 2011: 2012: 2013: 2014:
year ended 31 March year ended 31 March
74 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 75 how we dealt with the complaints
cases appealed to an ombudsman for a final decision
• requests for an ombudsman’s the complaints with dealt we how 6,842 7,960 8,674 decision by financial businesses 24% 10,730 31,029 17,465 20,540 24,332
requests for an ombudsman’s
2007: 2008: 2009: 2010: 2011: 2012: 2013: 2014: • decision by consumers 76% year ended 31 March
6% of the cases we settled For complaints involving Of the final decisions during the year required products other than PPI, made by ombudsmen an ombudsman to make a the proportion of cases during the year, 24% of final decision (11% in the appealed to an ombudsman requests were made previous year, and 9% in has been slowly rising by financial businesses the year before that). This over recent years – from and 76% by consumers lower proportion reflects 6% in 2006/2007 to the (32% and 68% respectively the fact that we resolved current figure of 18%. in the previous year). record volumes of PPI This reflects the continuing In 89% of final decisions, cases without needing an shift towards more complex ombudsmen reached the ombudsman’s decision. disputes – with many same basic conclusions In fact, during the year businesses increasingly as the adjudicators who only 2% of PPI cases taking a harder-fought and handled the cases in the were settled by an legalistic approach, and earlier stages. This was ombudsman’s decision. consumers becoming more a very similar proportion However, we expect to demanding and less willing to the previous year. see this figure increase to concede. Where ombudsmen came in future years – as PPI to a different conclusion, complaints become there was either a finely- increasingly complex balanced judgement call or, and entrenched. more often, new facts came to light at a very late stage.
74 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 75 how we dealt with the complaints
The 31,029 final decisions made by ombudsmen during the year were spread across the different areas of complaint as follows.
the financial products involved in ombudsman’s decisions • banking 28.5% • PPI 25.5% • general insurance (excluding PPI) 17% • mortgages 12% • investments 8% consumer credit 6% • the complaints with dealt we how • pensions 3%
The proportion of cases % of cases in each product area that During the year we saw that involved an appeal required an ombudsman’s decision a significant increase to an ombudsman for – from 20% to 28% a final decision varied mortgages 28% – in the proportion of considerably across mortgage disputes that product areas. were referred to an consumer credit 22% ombudsman for a final For example, although decision. This probably 28.5% of all ombudsman reflects the sensitivity and decisions related to pensions 22% complexity of mortgage banking cases, only 17% problems that can have a of the banking complaints direct impact on people’s we resolved during the year other investments 18% homes and lives. needed a final decision by an ombudsman to settle banking 17% The proportion of men and them. In the other 83% women who asked for of banking cases, our a final decision by an adjudicators were able to general insurance (excluding PPI) 14% ombudsman remained settle the disputes more broadly similar – as did informally. the proportion of requests payment protection insurance (PPI) 2% made by consumers from different faith and ethnic groups. There is more information about the diversity of our customers – and their experience of our service – on pages 92 to 116. 76 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 77 how we dealt with the complaints
publishing ombudsmen’s the backgrounds of our ombudsmen decisions Following extensive consultation through 2011 legal 37% and 2012, we started • to publish individual regulatory and government 28% ombudsmen’s decisions • – made from April 2013 financial services 13% onwards – on our website. • The consumers involved other 22% in the complaints are • anonymised so they can’t be identified. During the year we published 22,968 decisions By law, our board of hearings on our website. This figure non-executive directors As part of our work differs from the number is required to appoint resolving individual of decisions that our ombudsmen who have the complaints, our rules ombudsmen actually made appropriate qualifications allow us to hold hearings the complaints with dealt we how during the year, because and experience to make (face-to-face meetings) we allow a period of time decisions in complaints. in public or private. for the two sides to get the For someone to be We do this only where an decision in writing first appointed as an ombudsman believes a before it’s published. ombudsman, the board case can’t be fairly decided must be satisfied that on the basis of the factual they have the depth of material that the two sides experience necessary to have already provided. make important decisions involving people’s If we are asked for a lives, livelihoods and hearing by either a reputations. consumer or a business, we consider carefully what Our ombudsmen come value it will add. We don’t from a wide range of believe that hearings backgrounds – and their should be held just to names and brief career allow either side to confront histories are published the other in person. on our website. And neither side is given Each ombudsman a private meeting with specialises in a particular the ombudsman who will area of financial complaint. decide their case. In most cases ombudsmen are unlikely to consider that a hearing would add anything to their understanding of a complaint – and they agree to only around 10% of requests to hold hearings.
76 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 77 how we dealt with the complaints
how we record the outcome % of cases we upheld insurance complaints of cases we resolve We found in the consumer’s We record the outcome of favour in 58% of the a consumer’s complaint as complaints we resolved year ended 31 March “upheld” in cases where: during the year – compared with 49% of complaints in ●● The financial business the previous year and 64% told the consumer in its in the year before that. This final response that it had largely reflects the fact that done nothing wrong – we resolved such a large but after the complaint number of PPI complaints was referred to us, we during the year – and we decided (or the business have been finding in the belatedly accepted) that consumer’s favour in a it had done something relatively high proportion of wrong after all. these cases. or For the complaints ●● The financial business’s involving products other than PPI, our overall uphold final response offered the complaints with dealt we how the consumer inadequate rate was 37%. compensation – Our uphold rate varied but after the complaint across complaints involving (PPI) insurance protection payment insurance motor insurance buildings insurance contents insurance travel insurance health was referred to us, different financial products. 2011 66% 45% 42% 41% 42% 43% we required the business For example, during the 2012 82% 49% 50% 52% 52% 40% (or it belatedly agreed) year we upheld: to increase its offer to 2013 65% 47% 48% 40% 48% 29% ●● 77.5% of cases involving an appropriate level. 2014 65% 38% 44% 39% 53% 31% “packaged” bank We record the outcome of a accounts. complaints data about The complaints data named businesses shows that: complaint as “not upheld” ●● 28% of complaints about in cases where: mortgage endowments. Since September 2009 ●● Around 200 businesses we have been publishing (out of 80,000 covered by ●● The financial business complaints data on our the ombudsman service) had done nothing wrong. website every six months together account for or about the businesses 95% of our complaints involved in the complaints workload. ●● The financial business referred to us. The data ●● The number of had done something shows the number of new complaints relating wrong, but had already complaints – and the to each individual offered the consumer proportion of complaints business ranges from appropriate redress we upheld in favour of 31 to around 40,000. (before the complaint consumers – for named was referred to us). businesses that have 30 ●● The proportion of cases or more new cases and 30 we uphold in favour of or more resolved cases in the consumer varies each six-month period. substantially from business to business – between 2% and 94%.
78 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 79 how we dealt with the complaints
banking and credit complaints investment and pension complaints how we dealt with the complaints with dealt we how current accounts current credit cards mortgages loans unsecured credit consumer accounts savings services other banking endowments mortgage endowments and savings policies whole-of-life bonds investment pensions and portfolio management stockbroking
2011 28% 61% 37% 43% 47% 42% 43% 2011 31% 32% 60% 38% 66% 2012 31% 54% 28% 37% 51% 44% 41% 2012 28% 30% 51% 38% 57% 2013 34% 33% 26% 34% 50% 42% 42% 2013 25% 23% 36% 34% 49% 2014 40% 30% 30% 35% 48% 41% 39% 2014 28% 21% 37% 34% 51%
putting things right ●● Telling the business ●● Telling the business to compensate the to do something Where we find in a consumer for the trouble (or not do something) consumer’s favour, we they have been put to to put right what’s gone must decide how best to – or for the upset the wrong. This can range put things right – taking business has caused. from correcting credit into account the individual We did this in 24,060 references to paying circumstances of the case. cases (9% of the cases a previously-rejected There are various ways we we upheld during insurance claim. can do this including: the year). In these ●● Telling the business ●● Telling the business to cases the amounts to apologise. pay redress – to put the of compensation were consumer in the position generally between Where we don’t uphold a they would now be in if £150 and £500. complaint in favour of a the business hadn’t got it consumer, we aim to give wrong in the first place. them a clear explanation – from an entirely impartial standpoint – of why we believe the business has done nothing wrong (or has already offered appropriate redress).
78 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 79 how we dealt with the complaints
how ombudsmen told businesses to put things right how we dealt with the complaints with dealt we how
telling the business to take actions to put things right that don’t • have a direct cash value (for example, correcting a credit reference) 31% • redress up to £1,000 19.5% • £1,001 to £25,000 19% • £25,001 to £75,000 2.5% • £75,001 to £150,000* 1.5% • more than £150,000* 0.5% telling the business the basis or formula on which they must pay compensation • (for example, where specialist calculations need to be carried out) 26%
*The ombudsman can tell a business to pay compensation of up to £150,000 (£100,000 for complaints we received before 1 January 2012) – and can recommend that the business pay compensation in excess of this amount.
80 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 81 how we dealt with the complaints
The figures in this chart Just because we don’t don’t include any additional uphold a complaint on its amounts that we might merits does not mean that tell a business to pay the consumer might not – to compensate a feel upset and let down by consumer for any trouble the way the business has they have been put to or treated them. Similarly, upset they’ve been caused. a consumer’s failure to present a reasoned We continue to see many argument does not entrenched disputes that automatically mean that a could have been avoided case has no merit – or that if there had been better the complaint should be communication between categorised as “frivolous the financial business and and vexatious”. the customer. Too many problems stem from simple Of the 518,778 complaints misunderstandings that we settled during the year, should have been cleared we decided in 30,419 up at the outset. cases (6% of the total)
that it would be unfair in the complaints with dealt we how We know that sometimes the circumstances to consumers might talk charge the business about their problems in involved a case fee. an unfocused way – that The vast majority of can make them seem these cases involved unreasonable to the complaints about PPI business they complain brought by claims to. But we also see some managers – where our businesses responding enquiries established to customer concerns that the consumer, unhelpfully and defensively though understandably – aggravating problems concerned, had not in fact that a clear, helpful and been sold a PPI policy. sympathetic explanation might have resolved.
our aim is to give a clear explanation from an entirely impartial standpoint
80 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 81 how we dealt with the complaints
the time it took us to resolve cases how we dealt with the complaints with dealt we how 41% 70% 81% 87% 28% 66% 82% 86% 30% 58% 72% 81% 43% 73% 84% 89% 25% 48% 67% 78% 44% 71% 84% 90% 2013 excluding 2014 excluding 2011 2012 2013 all cases 2014 all cases PPI complaints PPI complaints
resolved within 3 months resolved within 6 months resolved within 9 months resolved within 12 months
year ended 31 March We are disappointed that Meanwhile, we continue to we have not been able to track how consumers feel settle all cases as quickly about having to wait – and as we – and our customers we have developed a range – would like. During the of different ways of keeping year we have geared up them up-to-date on what our resources significantly to expect. This may explain to make inroads into the why customer satisfaction large stock of PPI cases with our timeliness has in that have built up. This will fact improved during the inevitably mean we will be year (see page 122). settling greater numbers This tells us how important of cases that have been it is to manage people’s with us for some time expectations in these – and this will be reflected difficult circumstances. in our timeliness statistics.
82 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 83 how we dealt with the complaints
PPI cases awaiting resolution at 31 March 2014
• waiting for less than six months 32% • between six months and a year 33% • between a year and two years 31% • over two years 4%
Wherever possible we % of cases resolved within three months – by product area have tried to ensure that the delays caused by the credit cards 58% volumes of PPI cases do how we dealt with the complaints with dealt we how not adversely affect our handling of cases involving current accounts 56% other financial products. Across banking-related mortgages 52% cases, for example, we have been able to settle payday loans 51% 56% of cases involving current accounts within three months and 81% consumer credit 46% within six months. And we resolved 51% of payday loan complaints within investments and pensions 38% three months and 80% within six months. motor insurance 36%
PPI 19%
Reducing the time it takes process has a significant to resolve banking cases impact on the length of has continued to be a time people have to wait major priority for us during for their problem to be the year. Proportionally resolved. fewer businesses tend to We also believe it makes be responsible for a high sense to try and match volume of cases in this the speed of resolution area – so working closely with the speed of many of with those businesses to the transactions involved. smooth out the complaints
82 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 83 how we dealt with the complaints
For example, we worked During the year we closely with banks to deal identified and prioritised quickly and effectively with 8,000 cases where financial complaints from consumers hardship was a significant who found themselves issue – a similar figure unable to use their bank to the previous year. accounts normally following Around half of these IT glitches during the year. cases involved mortgages. Many others involved Many businesses have current accounts and welcomed the opportunity unsecured loans. We also to cooperate with us – prioritised cases where to help improve things a consumer’s health for their customers. meant they needed their Disappointingly, others complaint resolving continue to take an overly particularly quickly. legalistic approach to handling complaints. Of course, prioritising cases like these inevitably means We have also worked that other complaints closely with Citizens Advice can’t be moved forward the complaints with dealt we how to prioritise and streamline as quickly as we would complaints involving otherwise like. payday loans. This is reflected in the fact that we resolved more than half of these complaints within three months. we identified and prioritised 8,000 cases where financial hardship was a significant issue
84 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 85 how we dealt with the complaints
knowledge and expertise ●● Hosted fortnightly taking pride in our work lunchtime workshops on Our adjudicators and Our customers trust us a wide range of topics – ombudsmen need the right to provide a high quality from dealing sensitively knowledge and expertise to service. This means that with consumers who do their work to the highest in every case we handle, have Parkinson’s disease standards. As part of our we should be able to show to “compensation for commitment to this, during we have: distress”, and from the year we have: “packaged” bank ●● Got the basics ●● Increased the number accounts to cases right – obvious but of ombudsmen by 50% involving consumers important things during the year – from who have died. We have like getting personal 156 to 234. also continued to run our details correct and well-attended executive responding appropriately ●● Re-thought our question times. to someone’s approach to “knowledge communication needs. management” to make ●● Continued to offer our sure all our people have development programme ●● Made the decision in the insight and know- for our managers – the right way – getting how they need. with each receiving an to the heart of the issue
average of five days of and applying a consistent the complaints with dealt we how ●● Launched a range of training during the year. approach. initiatives to help make sure we communicate ●● Digitised our staff ●● Treated customers well clearly with our newsletters to bring – so that in each case customers – particularly knowledge sharing – the consumer and the about the way we work which can sound rather business are satisfied and the decisions we theoretical – to life. with the level of service have made. And we have made more we have provided. use of audio and video resources to support our more traditional ways of communicating across the organisation.
●● Gathered ideas and suggestions from our staff about how we can improve what we do – making the best suggestions happen. maintaining high ●● Provided our people with the skills to standards isn’t all about deal confidently and sensitively with an processes and boxes increasingly diverse to tick range of customers, including training on disability issues.
84 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 85 how we dealt with the complaints
Maintaining high standards asking for our ●● Commissioning research handling complaints about isn’t all about processes customers’ views among MPs to get their our own service and box-ticking. Everybody We carry out extensive views on our work Recognising where at the ombudsman service stakeholder and customer in relation to their we’ve made a mistake, is responsible for taking research – to help give us constituents. and learning from any pride in their work and for a deeper understanding of ●● shortcomings, is central the professional service Monitoring general what our customers think to offering good customer we provide. We involve consumer awareness of and feel, how they rate the service. This is why – just everyone in talking and the ombudsman service service we provide, and like the businesses whose thinking about the impact to help with our work on where we could do things complaints we handle – we have on our customers accessibility – ensuring better. During the year this we have our own formal – and how we can improve that everyone who needs programme included: complaints procedure for what we do. to contact us knows how people who are unhappy ●● Running monthly online to find us. To maintain our high with the level of service we surveys and six-monthly ●● standards, our work during Running a survey for our have provided. postal surveys to the year has included: website users to find record and measure out more about who We can usually sort ●● Reporting any case- how consumers whose they are and what they out problems as soon specific feedback from complaints we have are looking for on our as someone tells us customers directly to the handled rate aspects of they’re unhappy with website. the complaints with dealt we how individual adjudicator or the service we provided. the standard of service ombudsman involved Results and feedback from they have received. The ●● Providing an automated – and to their manager. our research are shown in prompt involvement of the feedback option at the more detail in the chapters relevant manager – with ●● Bringing our senior end of phone calls – called “who complained an immediate phone call leaders together to enabling consumers to to us” and “who the to apologise or explain – discuss quality and give instant ratings on complaints were about”. means we can resolve many professionalism various aspects of the issues without the problem across the service. quality of our service. escalating into a formal This has helped them ●● Carrying out research complaint. talk consistently to to monitor the views of their teams about the But if we’re not able to sort the businesses we cover standards we expect – out matters at this stage, – smaller businesses and how to meet them. one of our senior managers and larger ones alike will look into the problem. ●● Involving our entire – using both online This applies to complaints senior management team and postal surveys. both from consumers and and board members in businesses. The process is an assessment of real entirely separate from the cases that we’ve dealt usual process that applies with – asking questions if a consumer or business and challenging our disagrees with our views on assumptions. This we want a deeper the merits of their case – involved looking in detail and wants us to re-consider at our correspondence, understanding of what facts and arguments. as well as listening to our customers think recorded phone calls between our staff and and feel our customers.
86 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 87 how we dealt with the complaints
During the year we We agreed that the level improving the way we work responded to 2,847 of service we had provided We know there is always complaints about our was unsatisfactory room for improvement service – 450 more than in 37% of these cases in what we do. We run a the previous year. However, (32% in the previous wide range of projects given our increased total year). Where this involved and initiatives aimed at workload during the year, paying compensation improving the quality, the overall proportion – in recognition of the consistency and efficiency of complaints about our inconvenience caused by of the ombudsman service. service remained the same. delays or administrative errors on our part Making sure we continue We were able to resolve – the average payment to respond effectively to 63% of these complaints was around £100. the unprecedented volumes directly within the teams of PPI cases has given us where the problem Where we are unable to the opportunity to make arose – and 37% of the resolve a complaint about significant improvements complaints were settled our service, it can be to the way we work. with the involvement of referred to an independent This has included: a senior manager. 2% assessor – appointed by of the complaints were the board – for a formal ●● Eliminating (as far as
made by businesses (3% independent review of the possible) reliance on the complaints with dealt we how in the previous year) level of service we have paper files by using and the others were all provided. Each year the document scanning from consumers or their independent assessor and electronic-file representatives. produces an annual management across our report for our board, casework operation. setting out findings and ●● Developing our “horizon- recommendations made scanning” capability so over the year. We publish we can quickly identify this report in full on our new issues and respond website. to changes in the volumes and types of cases referred to us.
●● Enhancing the “live” we need to adapt guidance we give our adjudicators to help our processes to reflect them navigate their way both business and through cases. ●● Working with experts in consumer needs customer service from outside financial services – to learn from the best in customer experience and to see how we can improve the “customer journey” for people using our service.
86 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 87 how we dealt with the complaints
During the year we ran We also tested out an our budget and funding Now that we have scaled a number of casework online version of our up our operation sufficiently, We are funded by an annual experiments to test out complaint form. Again, from April 2014 levy paid by the businesses different ways of handling we monitored the results businesses no longer we cover – and by case fees complaints. We have of the experiment carefully pay a supplementary that we charge businesses listened to what people – and many consumers fee for PPI cases. for settling individual have been telling us, and told us they found it a disputes referred to us Our budget is calculated based our innovation work convenient way of getting about them. To help fund on the basis of workload on what we have heard. the ball rolling. the increased resources forecasts that we consult on For example, we knew Unsurprisingly, running we needed to handle publicly before the start of people wanted to be able these projects confirmed unprecedented demand for each new financial year. to tell us about a complaint that consumers want to our services, we increased Following public online. So we selected engage with us where and our case fee for 2013/2014 consultation in January and visitors to our website at when it suits them – and in – having kept it at the February 2013, the board random and asked if they a way that puts them firmly same level for the previous of the Financial Conduct would be interested in in control. three years. Authority (FCA) and our own taking part in webchats During the year we also However, at the same time board approved a budget with us. used Twitter and other we increased the number for the ombudsman service We tested out different social media sites to of free cases for each – for the financial year how we dealt with the complaints with dealt we how approaches – and interact with people who business from 3 to 25. 2013/2014 – that assumed monitored the responses think they might have a This meant that during the income of £283.6 million we received. We found that complaint – but who are year, 92% of businesses and expenditure of in many cases we were able only in the early stages that had complaints £266.9 million, with a unit to get enough information of articulating it. We have referred to us paid no case cost of £690. Our unit cost about the consumer’s seen how differently people fees at all. There is more is calculated by dividing our problem, to help them express their problems over information about this in total costs (before financing move things forward even social media. the chapter called “who the charges and any bad debt at the earliest stage. complaints were about”. charge) by the number of Although it’s still early cases we resolve. days, we have found social In April 2012 we introduced media to be another useful a supplementary case channel for helping people fee for complaints get their problems sorted involving mis-sold PPI. out as early as possible – This supplementary fee before they escalate into was chargeable only when something more serious. businesses had more than 25 of these cases a year, reflecting where the costs were actually incurred in sorting out PPI mis-selling on this scale.
88 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 89 how we dealt with the complaints
our unit cost
£720 £700
£639 £600
£555 £529 £500 £508 £484
£430 £400 how we dealt with the complaints with dealt we how
£300
£200
£100
2008 2009 2010 2011 2012 2013 2014
year ended 31 March
The actual final figures We continued to build that However, as we have said for the year showed total capacity during 2013/2014 elsewhere in this annual income of £336.4 million, by recruiting 1,000 more review, we know from our expenditure of £223 million, casehandlers – resulting previous experience of and a unit cost of £430. in a record number handling “mass disputes” of cases resolved and that the further we make Although the number of PPI a lower unit cost. inroads into our PPI cases we received during caseload, the more complex the year yet again exceeded and challenging it’s likely planning assumptions, to become. This is likely we had already scaled to affect our unit cost up our operations in the in the future. previous year to deal with the cases coming in.
88 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 89 how we dealt with the complaints
summary of our income and expenditure
year ended year ended year ended 31 March 2014 31 March 2013 31 March 2012 £ million £ million £ million
income annual levy 25.7 20.8 23.6 special levy – – 25.0 group fees 197.2 – – case fees 82.9 102.6 102.8 supplementary case fees 30.1 27.1 – other income 0.6 0.5 0.5 bad debt costs – (1.0) (0.4) total income 336.5 150.0 151.5
expenditure staff-related costs 188.2 126.2 83.4 other costs 28.4 30.2 21.1 financing charges – – – depreciation 6.4 4.4 2.2 total expenditure 223.0 160.8 106.7 surplus/(deficit) 113.5 (10.8) 44.8
These figures are drawn from our unaudited management accounts and may be subject to change. The directors’ report and audited financial statements will be available separately on our website once approved.
90 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 91
how we dealt with thecomplaints 90 annual review 2013/2014 FinancialOmbudsman Service
Financial Ombudsman Service annual review 2013/2014
91 who complained to us who complained to us
understanding more As in previous years, ●● Make sure we are about consumers the research we carried out meeting particular in 2013/2014 helps us to: accessibility needs. We find out a lot about an individual consumer’s ●● Identify and respond ●● Meet our commitment to circumstances when they to what people want equality and inclusion. refer a complaint to us. and expect from us. ●● Target our outreach But we also need to find ●● Make our service easier and awareness-raising out on a more general to use – for everyone. activities. level how consumers feel and behave – particularly around the financial who complained to us to who complained services they’re using and what they do when PPI aside, things go wrong. the over-65s are still our largest consumer group
the age of consumers In last year’s annual review we resolved – in which who complained to us we said that consumers proportionally fewer over- aged over 65 made up 65s were involved. PPI We usually find that the nearly one in four of people aside, however, the over- proportion of consumers who used us. This year, 65s remain our largest in each age group stays we saw a fall in people in consumer age group largely the same each year this age group. This can – referring more than a – irrespective of how many largely be explained by quarter of the cases we complaints we see in total. the increase in the number resolved during the year. of payment protection insurance (PPI) complaints
• under 25 1% • 45 to 54 27% age • 25 to 34 13% • 55 to 65 18% • 35 to 44 24% • over 65 17%
92 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 93 who complained to us
The consistently high Seven out of ten consumers Once again, PPI is the most number of older consumers who used our service complained-about financial who bring us complaints during the year were aged product among consumers might be a result of our between 35 and 65. This of all ages (except the outreach work with this isn’t surprising – given the under-25s, whose most demographic over previous wide range of life events complained-about product years. We talk about how that people can experience was bank accounts). this work continued in between these ages and However, the proportion of 2013/2014 elsewhere in the wide range of financial cases from each age group this chapter. It is also likely products that can go along that involved PPI varies that, as life expectancy with them. Our research considerably – from just
has increased, people are confirms that people in under half of complaints us to who complained engaging with financial this age group have a from the over-65s to more services – and generally relatively higher awareness than three quarters from being active consumers – of consumer rights – people aged 35 to 44. for longer. including their right to refer a complaint to us.
the most complained-about products – by age group under 25 33% 27% 13% 27%
25 to 34 71% 11% 9% 9%
35 to 44 76% 10% 5% 9%
45 to 54 74% 9% 4% 13%
55 to 64 71% 9% 6% 14%
over 65 48% 13% 12% 27%
• payment protection insurance (PPI) • loans • bank accounts • investments and pensions • car/motorbike insurance • other products
92 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 93 who complained to us
To better understand how Once again we found that Our research shows that people first get in touch with age makes no difference we are slightly less likely us, we carry out a range here – and that consumers to find in the consumer’s of research. This includes of all ages are just as likely favour if they are either monitoring callers to our to refer a complaint to us under 35 or over 65. consumer helpline – so after talking it through with This is because a relatively we can build a picture of our consumer helpline. lower proportion of PPI which types of consumers complaints – which have are more and less likely to a higher “uphold rate” – pursue a formal complaint. are referred to us by people in these age groups. who complained to us to who complained
the age of consumers whose complaints went on to our final “appeal” stage – an ombudsman’s decision
• under 25 1% • 45 to 54 24% age • 25 to 34 10% • 55 to 65 19% • 35 to 44 18% • over 65 28%
In general, the younger However, the trend also plans may depend on them someone is, the more reflects changes in the – it’s understandable likely they are to accept an types of financial services that a consumer might informal resolution to their people use as they get want to take things as far complaint early on – and older. as they can if something the less likely they are goes wrong. Compared with younger to appeal their case and people, older people Younger people, on the ask for an ombudsman’s generally have more other hand, complained decision. Over-65s are investment and pension about their current the people most likely products. 5% of complaints accounts more than any to take their case to this brought to us by the over- other group. There is final stage. 65s this year involved more information later A higher level of confidence investments and pensions, in this chapter about in dealing with “official” against fewer than 1% of how we raise younger procedures – which generally complaints brought by people’s awareness comes with experience – the under-35s. As these of the ombudsman could be a factor in this. products can involve large service – as well as their amounts of money – confidence in dealing and someone’s future with their finances.
94 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 95 who complained to us
the gender of consumers who complained to us
female 41% gender • • male 59% who complained to us to who complained
Over the last few years Our research shows Our research also showed the proportion of women that although women that women were 7% who complained to the complained slightly more less likely than men to be ombudsman has been fairly than men about PPI, satisfied with the business’s constant. But this year the three products that response to a complaint. we saw an 8% increase in women and men alike And 65% of women said the proportion of women complained about the they would take their using our service. This most were: complaint further if they largely reflects the fact that were unhappy with the ●● PPI (70% of women’s slightly more women than business’s response – complaints and 67% men brought us complaints compared with 57% of men. of men’s). about PPI. ●● Credit cards (4% of On the whole, however, women’s complaints we are still seeing and 5% of men’s). more men than women we saw an 8% increase refer complaints to the ●● Current accounts (4% ombudsman. Although of women’s and men’s in the proportion of women we can’t be sure exactly complaints). why this is, it might have We also asked men and using our service something to do with the women who hadn’t brought fact that a lot of complaints us a complaint about their involve accounts or policies attitudes to complaining – that are in joint names – to see whether there were where a male partner’s We also monitor the any differences between name conventionally outcomes of complaints by genders. Our research appears first. gender. Our research shows showed that women were that there’s no difference in As part of our research we 20% less likely than men to our “uphold rate” between monitor whether men and say they’d had a problem cases brought by men and women tend to complain with a financial product. cases brought by women. about different products. But although women were less likely to identify a problem in the first place, if they decided something was wrong they would be more likely to do something about it. 94 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 95 who complained to us
where consumers live who brought complaints to us who complained to us to who complained
Scotland 9%
North East 10% Northern Ireland 2%
North West 12%
East Anglia Midlands 5% Wales 20% 5% 28% South East (including Greater London) South West 9%
96 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 97 who complained to us
consumers’ complaints Although we didn’t find – by region and nation any significant regional or national trends in the We record where the products that people consumers who bring complained about, there complaints to us live – were some variations. so we can monitor levels For example: of usage and awareness of the ombudsman across ●● Complaints about the UK. In 2013/2014 our PPI made up 74% of customers were spread complaints from the across the UK in line with North East of England who complained to us to who complained the relative populations compared with 63% 1. Widnes of the different nations from the South East. and regions. We’ve also 2. Bristol ●● Current accounts made found this to be the case up 6% of complaints 3. Bolton in previous years. from the South East 4. Manchester and 3% of complaints from the North East. 5. Gillingham
where people phoned us from the most 6. Sale 7. Birmingham Widnes Swansea 8. Chester Bristol Stanmore 9. Leeds Bolton Hull 10. Salford Manchester Glasgow 11. Swansea Gillingham Macclesfield 12. Stanmore Sale Bury 13. Hull Birmingham Northampton 14. Glasgow Chester Burton-on-Trent 15. Macclesfield Leeds Nottingham Salford Liverpool 16. Bury 17. Northampton 18. Burton on Trent We found more of our However, we know that calls came from densely- consumers in relatively 19. Nottingham populated, urban areas isolated areas can have 20. Liverpool – and fewer came from the quite specific needs in more remote parts of Wales terms of financial services and Scotland. – and we continue to visit smaller, rural communities of the UK.
96 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 97 who complained to us
how consumers with complaints knew about the ombudsman
This year we saw an This probably reflects (DE) backgrounds the figure increase of 38% in the the fact that under the was much lower – at 22%. proportion of people who complaints-handling This year, however, our brought us a complaint rules set by the regulator, research suggests that this who said they found out businesses covered by gap has closed – with 32% about us through word- the ombudsman service of people from unskilled of-mouth – from a friend, have to mention us when a backgrounds saying they’d relative or colleague. customer has a complaint heard about us from the that can’t be resolved business. And for the second year within eight weeks. running there was a slight Our research continues us to who complained increase in the proportion Men are more likely to show that younger of people who said that than women to say they people rely far less on the they’d heard about us found out about us from press to find out about us. from the financial business the financial business, Compared with people over they complained to. whereas women are more 55, younger people are likely to say they found twice as likely to hear about out about us from a friend, us from friends, colleagues relative or colleague. and family. Around a third of people The under-25s are the age men are more likely from professional group most likely to have and managerial (AB) found out about us online. than women to say they backgrounds and skilled There is more information and semi-skilled people later in this chapter found out about us from (C1/C2) told us they about general levels found out about us from a financial business of consumer awareness the business they’d of the ombudsman service. complained to. Last year, we pointed out that for consumers from unskilled
• from a financial business 35% • on the internet 19% • from a friend, relative or colleague 18% • in the media (press and broadcast) 14% • from a consumer-advice agency (eg Trading Standards or Citizens Advice) 4% • from a claims-management company 3% • other 7%
98 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 99 who complained to us
newspapers read by the consumers who complained to us
The most popular newspapers among consumers who use us are still the free and regional papers – particularly Metro, which is available in 15 urban areas across the UK. Given the wide distribution and diversity of the
readership of the free us to who complained and regional papers – and generally declining readership of paid-for newspapers – these are regional and free papers (including Metro) 25% particularly effective • channels for reaching Daily Mail/Mail on Sunday 20% our customers. However, • we continue to find that Sun 11% younger consumers are • far less likely than older Mirror 9% consumers to have heard • about us from a newspaper. • Times/Sunday Times 8% • Telegraph/Sunday Telegraph 5% • Express 5% • Guardian/Observer 4% • Financial Times 3% • Independent/Independent on Sunday 2% • from a financial business 35% • Star 2% • on the internet 19% • other 6% • from a friend, relative or colleague 18% • in the media (press and broadcast) 14% the free and regional • from a consumer-advice agency papers are particularly (eg Trading Standards or Citizens Advice) 4% effective channels for • from a claims-management company 3% reaching our customers • other 7%
98 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 99 who complained to us
media coverage of the ombudsman Over the last year we’ve As we explained earlier in featured in around 6,000 this chapter, the regional stories – in both the media is a particularly national and the local effective channel for media. We took part in reaching our customers. interviews and phone-ins So we took part in on national radio stations, interviews on over 100 and we gave interviews local radio stations. to the national broadcast We continued to get media – including BBC
significant online coverage. us to who complained Breakfast and Sky News. Over 1,000 organisations We’ve also featured in more now link directly from their consumer programmes website to ours – including during the year – including voluntary and community the BBC’s Rip Off Britain groups, businesses and Watchdog. and business networks, government and public sector bodies, as well as the online versions of traditional newspapers, magazines and trade publications.
• BBC 8% • Daily Mail/The Mail on Sunday 6% • The Times/The Sunday Times 5% • The Guardian/Observer 4% • Money Marketing 4% • The Independent/The Independent on Sunday 3% • Mortgage Strategy 2% • The Telegraph/The Sunday Telegraph 2% • thisismoney.co.uk 2% • The Scotsman 1% • other coverage 63%
100 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 101 who complained to us
local radio regions
Scotland North East
Northern Ireland
North West
Wales who complained to us to who complained Midlands
East Anglia
South East
South
South West
We have also been We posted stories on Recent research suggests increasing our profile LinkedIn that people that although young adults on social media sites working in the financial are the heaviest users including Twitter, LinkedIn services sector might find of social media, use is and Facebook. During the interesting. We also posted growing the fastest among year our Twitter activities stories, video content and people aged 50 and over. included: graphics on Facebook. Engaging all kinds of people over social media ●● A partnership with the During the year, is something we plan to National Association the number of people do a lot more of over the of Student Money who had seen content coming year. Advisers to tweet associated with our student money tips. Facebook page – by “liking” us, clicking ●● Having direct chats onto our page or seeing with consumers – it on a friend’s timeline and opening up our – had almost doubled. conversations for other There’s more information people to join in. about the way we used ●● Tweeting live from our social media during the consumer helpline and year on page 88. our technical advice desk to show real-time trends.
100 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 101 who complained to us
the socio-economic background of consumers who complained to the ombudsman
2014 30% 59% 11%
2013 38% 55% 7%
2012 34% 54% 12%
2011 35% 57% 8%
2010 36% 57% 7% who complained to us to who complained 2009 41% 53% 6%
2008 48% 47% 5%
year ended 31 March • AB professional and managerial • C1/C2 skilled and semi-skilled • DE unskilled
Our research suggests We also monitor the Again, these differences are that a consumer’s socio- outcomes of complaints likely to reflect the fact that economic background from people with we resolved so many PPI influences how likely different socio-economic complaints during the year they are to complain backgrounds. During the – which a higher proportion to a financial business. year – for complaints of consumers with skilled, The changes we saw about all financial semi-skilled and unskilled during the year –a higher products – we upheld: backgrounds brought to us. proportion of complaints ●● 51% of complaints from people with skilled, from AB consumers semi-skilled and unskilled – down from 54% backgrounds – partly last year. reflect the fact that we see more complaints about PPI ●● 59% of complaints from these consumers. from C1/C2 consumers – up from 55% last year.
●● 61% of complaints from DE consumers – up from 51% last year.
102 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 103 who complained to us
the financial products consumers complained about – by socio-economic background
payment protection insurance •AB professional and managerial 60% 60% PPI 69% 72% 13% loans and consumer credit loans 13% 9% current and 10% savings accounts 7% 6% investments and who complained to us to who complained bank accounts pensions 9% 5% motor and household 8% insurance 8% 9% other investments and pensions 6% C1/C2 skilled and semi-skilled 3% • 5% 69% PPI motor and household insurance 10% loans and 5% consumer credit 4% 8% current and 2% savings accounts other 4% motor and household 9% insurance 6% 3% investments and 6% pensions 6% other During the year we saw more consistency in the DE unskilled products that people from • different socio-economic 72% PPI groups complain about. 8% current and The three most complained- savings accounts about products – PPI, loans and bank accounts – were 7% loans and the same across all groups. consumer credit 5% investments and pensions 2% motor and household insurance 6% other
102 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 103 who complained to us
the occupational background of consumers who complained to us
• administrative and secretarial 23% skilled trades • (eg electricians, plumbers, mechanics) 21% • managers and officials 17%
• professionals 12% us to who complained personal services • (eg care assistants, dental nurses) 8% • sales and customer service 8% “elementary” occupations (eg hotel & • bar staff, farm workers, postal workers) 7%
process and plant work (eg machinery • operatives, assembly-line workers) 4%
• employed 55% • retired 26% • self-employed/running own business 13% • other 6%
the proportion of employed people using our service went up by 20% this year
104 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 105 who complained to us
The occupational There are more details backgrounds of consumers later in this chapter about using our service continued our awareness-raising and to shift during the year. accessibility work. The proportion of We monitor the outcome professionals fell by of the complaints we 29%, and the number of resolve to make sure we managers and officials are treating people fairly also fell slightly. and equally. The results The proportion of people continue to show that our working in process and uphold rate is broadly the who complained to us to who complained plant jobs rose from 1% same across groups of to 4% – and, for the first consumers from different time ever, the group that backgrounds. We also think it’s important complained to us the that the people who work most were people working for us reflect the diversity access and inclusion in administrative and of our customers and secretarial jobs. When we were set up by stakeholders. There’s more parliament, the intention information on the diversity The proportion of employed was to make sure that of our workforce later in people using our service every consumer in the this chapter. went up by 20% during UK has access to a free the year. The proportion Our equality and diversity ombudsman service. of retired people fell from strategy is set and 31% to 26%, which is in We continually review monitored by our board and line with the 7% decrease how we work to make sure executive team – and we in complaints from people no aspect of anyone’s publish it on our website. aged 65 or over. personal circumstances During the year we received prevents them from being Although the number four independently- able to reach us. And when of people who told assessed awards in they do reach us, we want us they are unemployed recognition of our positive to be certain that there is still relatively small, approach to diversity. are no barriers to their we continue to take the We are now: complaint being decided needs of jobless people fairly and impartially. ●● Accredited Leaders in into account in our Diversity. outreach work. ●● Investors in Diversity, We’ve worked closely stage one and two. with a number of agencies that provide people with ●● For the third year return-to-work support. running, a gold standard We’ve also visited areas “diversity assured” where we have heard that organisation. significant redundancies have taken place – and, working in partnership with local community advisers, talked to people about any problems they might be having with loan or credit agreements.
104 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 105 who complained to us
Our continued success ●● The National Diversity our omb|assadors In the following section, in this area relies on our Awards – whose Positive we look at the range Our omb|assadors are working closely with a Role Model for Age of different needs our employees who volunteer range of external partners. award we sponsored and customers tell us they to help raise awareness These include: presented this year. have – and what we of the ombudsman in do to meet them. ●● The Employers’ Network ●● The British Standards their own communities – for Equality and Inclusion Institute (BSI) – who outside work. This helps (ENEI) – who offer us continue to showcase us reach local groups disability advice and benchmark our partnerships with who are less likely to Of the consumers whose us against a range of charities and vulnerable know about and use our complaints we resolved private and public sector people as part of our service. In 2013/2014 our during the year, 18% told us to who complained organisations. early adoption of the omb|assadors: us they had some form of voluntary standard ●● The Equilibrium Network ●● Ran a workshop for disability. This remains BS 18477: inclusive – who assessed our residents of a life- broadly in line with the service provision. approach to diversity skills centre for single government’s most recent as gold standard. People from across homeless people. figures. Most frequently, our organisation meet consumers described ●● The National Centre ●● Hosted an afternoon tea regularly as our customer their disabilities as relating for Diversity – who party and quiz at a local service group. The group to mobility, circulation accredited us as pensioners’ club. continually reviews our and manual dexterity. Leaders in Diversity. procedures to make sure ●● Explained our role And significantly more ●● Stonewall, the charity we are as easy as possible to advice workers at people than last year for lesbian, gay and for our customers to use. a charity providing said they had a hearing bisexual equality Their work this year included frontline community impairment or learning – who help us with running refresher training and social care. difficulties. recruitment and for colleagues across our acknowledge us as a casework areas on dealing diversity champion. with customers’ different communication needs. ●● A range of disability, mental health and wellbeing charities – including Mencap, CLASP, Samaritans, MIND, Macmillan Cancer Support, Age UK, British Dyslexia Association, National Autistic Society, Action on Hearing Loss, British Heart Foundation, Stroke Association, Parkinson’s UK and Alzheimer’s Society – who provide training and guidance for our employees on disability issues.
106 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 107 who complained to us
disabilities that consumers with complaints told us about who complained to us to who complained
• mobility difficulties 20% arthritis and manual • dexterity difficulties 18% • hearing impairment 14% heart and circulatory problems • (eg stroke) 13% • mental health issues 8% organ and nervous-system disorders • and disease (eg diabetes, MS) 7%
respiratory and breathing • difficulties (eg asthma) 6%
• sight impairment 4% we provided • other (including learning difficulties) 10% information in a different format in 3,181 cases
106 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 107 who complained to us
meeting customers’ different needs
• using large or bold print 78.5% • using colour-tinted paper 14.5% • information on CD and cassette 2% • Braille 1.5% who complained to us to who complained • British Sign Language 1% meeting different needs in • other ways (including simplified text) 2.5%
We ask all consumers when We train our employees they first contact us if they to deal with our customers’ have any particular needs different needs with – and would like us confidence, sensitivity to adapt the way we and pragmatism. communicate with them. This includes being During 2013/2014 we perceptive to situations provided information people are experiencing in a different format in outside their complaint 3,181 cases. – for example, poor physical or mental This included using large health, bereavement or bold print in 2,497 cases or unemployment. and colour-tinted paper in 464 cases. And for the Where it’s appropriate first time this year, our we use our strong and new British Sign Language growing network of support interpreter service allowed organisations to make sure customers with hearing people get the help they difficulties to talk to us in need. These include a range real time. of disability, mental health and wellbeing charities.
108 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 109 who complained to us
In early 2014 the During the year we met During the year, Alzheimer’s Society helped people with disabilities we continued to work 80 of our staff become – and the carers who with disability lifestyle “Dementia Friends”. support them – at venues magazines Able and Access This was in recognition of ranging from the national – as well as starting their understanding of the Naidex exhibition at the to work with Pos’ability. condition – and the ways NEC to, more locally, Our own staff talked to they can support people Brighton’s Fed centre for these publications about who live with dementia. independent living. their own different needs We were among several And to gain more insight – helping to raise our independent organisations into “hidden” disabilities profile as both an
supporting the Charter that our customers might accessible service and us to who complained for Dementia-Friendly have – such as learning an inclusive employer. Financial Services – an difficulties and mental agreement between health issues – we built financial businesses and new relationships with the Alzheimer’s Society organisations including – which was launched in Mencap and CLASP, the October 2013. suicide prevention charity. If a customer tells us they have a particular need or disability we do everything we can to adapt the way we deal with their case – to make our process as easy as possible for them. On page 28, we give some examples of what we did when there was no ready- made solution.
108 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 109 who complained to us
consumers from black There was some variation in White and non-white and minority ethnic (BME) the types of products these consumers were equally backgrounds consumers complained likely to have their about. For example, 80% complaints upheld Of the consumers who of Black/Black British – and also equally likely brought complaints to us consumers’ cases related to ask for an ombudsman’s during the year, 11% told to PPI, compared with 47% final decision. us they came from a non- of complaints from Asian white ethnic background consumers. (a similar proportion to the previous year). who complained to us to who complained the ethnic background of consumers who complained to us
92% 91% 89.5% 88% 89.5% 88% 89%
12% 12% 11% 10.5% 10.5% 9% 8%
2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014
non-white white
Our targeted media work name our service without during the year included any prompting – 17% this partnerships with women’s year, compared with 14% magazines, Black Hair and last year. Pride. Some of our own We continued to share staff – who themselves practical financial read these magazines management tips with – featured in articles on readers of The Asian Today. shopping, holidays and And we also talked to relationships. This helped consumers face-to-face at to highlight the relevance multicultural community of our service in everyday events – including life – and the importance melas (gatherings) of consumer rights more in Birmingham, Leicester generally. Our research and London. shows that an increasing number of Black/Black British consumers can
110 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 111 who complained to us
the ethnic background of our website users
• White 79.5% • Asian/Asian British 7.5% • Black/Black British 6% • Chinese 1% who complained to us to who complained • other 6%
During the year the biggest percentage rise in requests for our translation service was for Middle Eastern languages. We used six different Middle Eastern languages across 298 cases – nearly half as many again as in 2012/2013. European languages aside, we handled 1,001 cases in a range of 19 Asian languages (6% more than last year), and 47 cases in three African languages. There is more information in the chapter called “the complaints we received” on the work we have done with consumers whose first language isn’t English.
110 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 111 who complained to us
faith and religion Once a consumer’s complaint has been resolved, we ask them to give us some more information about themselves. The survey we send people includes an optional question about their beliefs.
The information we us to who complained gather from this question helps us make sure we’re both handling complaints and making decisions impartially.
faith and religion of the consumers who complained to us
• Buddhist 1% • Christian 69% • Hindu 1% • Jewish 0.5% • Muslim 2% • Sikh 0.5% • other religion 4% • no religion 19% • prefer not to say 3%
112 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 113 who complained to us
These figures are very It is also possible that similar to those we’ve seen different religious attitudes in previous years. Although towards credit and they are broadly in line with interest affect the types statistics from the 2011 of complaints consumers UK census, we did find one refer to us – and therefore or two slight variations, the uphold rates between consumers under 25 including: different faith groups. were the only age group to ●● More complaints from consumers who told younger people complain more about their us they were Christian The under-35s are us to who complained (69% in our survey and bank accounts than any proportionally under- 60% across the UK). represented among people other product ●● Fewer complaints from who use the ombudsman. consumers who told us The difference is particularly they were Muslim (2% in pronounced for the our survey and 4% across under-25s. the UK). This largely reflects the Consumers under 25 Looking at the outcome of fact that, in general, were the only age group the complaints we settled people under 25 have to complain to us more this year, we found slight fewer financial products about their bank accounts variations between faith than older, more than about any other groups. For example, we financially-established financial product. And they upheld proportionally consumers. That said, were the only age group more complaints involving it’s evident from the where PPI wasn’t the most Christian consumers than complaints we receive from complained-about product. Hindu consumers. younger people that they are using bank accounts, This reflects differences in credit cards, loans and the products that different insurance products. groups complained about. In particular, Christians made up a large proportion of the consumers who complained to us about mis-sold PPI. And because we uphold a relatively high number of PPI cases, the overall uphold rate for Christian consumers was relatively higher.
112 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 113 who complained to us
what consumers under 25 complained to us about In our research among processes they see as consumers generally – “formal”, like making a rather than those who had complaint. This is why actually used our service we’re working hard to – we found that 11% of make ourselves accessible people under 25 said in different ways.
they’d had a problem with a us to who complained Or it could be that younger financial product or service. consumers are interacting Although this is almost with financial businesses double the previous year’s differently – and that figure, it is still significantly the businesses involved less than the proportion are generally resolving of consumers aged 25-35 queries before they become (18%) and 45-54 (26%). problems. For example, It could be that younger many financial businesses bank accounts 33% people have fewer financial now have a dedicated • products than older customer service Twitter people – and so haven’t yet account. PPI 27% encountered a problem. • Our research this year car/motorbike insurance 13% But there could be found that 57% of people • more complex reasons. under 25 hadn’t heard of loans 11% For example, younger the ombudsman service. • consumers – who have However, awareness grown up with technology among the next age group consumer credit 10% • that encourages immediate, was far higher. One in five informal interactions consumers aged between other 6% • – might prefer to avoid 25 and 34 could name us without any prompting.
114 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 115 who complained to us
During the year we ●● Meeting students at older people continued to try to raise freshers’ fairs and During the year we saw awareness of our service providing students’ a smaller proportion of among younger consumers. unions with our leaflets complaints from people This included: and posters. aged 55 or over (35% ●● Partnering with ●● Supporting Trading compared with 41% in the publications and Standards’ Young previous year). We also websites aimed at Consumers of the Year saw a smaller proportion younger people – competition and the of complaints from retired for example, offering tips young consumers-v- people (26% compared for money management parliamentarians with 31%). who complained to us to who complained in The Festival Guide, money quiz. The proportion of Gap Year Travel Guide, ●● Promoting the film consumers over 65 who and on StudentTimes.org we made last year referred complaints to us and StudentBeans.com. with youth workshop was also lower this year. ●● Establishing our SE1 United – which However, people in this presence across a range continued to be shown age group still account for of social media – and at cinemas across the UK. 17% of the people who using these to raise use our service. ●● For the second year, awareness of consumer sponsoring and Consumers over 65 are rights, money matters presenting a National much more likely to ask and our role. Diversity Award. for an ombudsman’s final ●● Promoting our service The Positive Role Model decision if they’re unhappy on posters in Glasgow for Age, Aaron Anderson, with our initial view on their pubs and clubs. overcame childhood complaint. This perhaps trauma and addiction to reflects the types of ●● Working with the set up a local business products involved in National Association of community and help 180 these consumers’ Student Money Advisers young people gain new complaints – with older on a range of activities qualifications. people more likely to have – for example, offering more complex products money tips on Twitter such as pensions and during National Student investments, where more Money Week. mate flying money might be at stake. low? do the right thing ...
bank mate had problems a lipstick getting malfunction? you down? find us on facebook do the right thing ... credit card companywn? let you do do the right thing – showing now find us on facebook
do the right thing – showing now
114 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 115 who complained to us
what people over 65 complained to us about As part of our outreach Awareness of the work we regularly talk ombudsman service face-to-face with older has been steadily rising consumers and to the among consumers over organisations that 65. Our research this year represent their interests. showed that over three This gives us a better quarters of people in this understanding of the issues age group have some that older people might awareness of our service face when they’re using – up from 70% last year – financial services. Based although this is still lower
on some of the things than awareness among us to who complained we’d been hearing, we people aged 45 to 64. produced a special issue We mentioned in last of ombudsman news in year’s annual review that August 2013 in partnership our research showed a with Age UK and Which? PPI 48% divergence among older • people – between those loans 13% who use technology and • those who don’t. • bank and savings accounts 12% • investments and pensions 9% • household/motor insurance 7% • consumer credit 3% • other 8%
% of over-65s who said they had no internet access We saw similar results in our research this year, 64% although the percentage of older people who said they 55% 54% didn’t have access to the 49% internet went down slightly. 47% 18% of consumers aged between 55 and 64 told us that they didn’t have internet access – rising to 49% among the over- 65s. In contrast, just 3% of people between 25 and 34 said they didn’t have 2010 2011 2012 2013 2014 internet access.
116 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 117 who complained to us
the diversity of our own 37% of our employees workforce are from non-white backgrounds, 2% have The diversity of our a disability, and 4% workforce stayed broadly have indicated as part of the same as we reported our equal opportunities last year. monitoring that they are Across our workforce, 45% lesbian, gay, bisexual or are male and 55% female. transgender (LGBT). At the end of the year, In February 2014 women accounted for 50% the Sunday Times of our non-executive board, us to who complained Best Companies survey 57% of our executive team confirmed once again and 47% of our panel of that we are a “Top 100” ombudsmen. organisation to work for. 51% of people working at Research suggests that the ombudsman service at the most motivated and the end of the year were enthusiastic staff provide aged between 25 and 35 the best customer service – – with 4% of our workforce and taking part in the survey older than 55. The age of helps us measure how we’re our employees ranged doing in this area. from 17 to 70 years old.
levels of consumer awareness of the ombudsman service
people who could name us • without any prompting 20%
people who said they definitely knew of us • when they were told our name 44%
people who said they may have heard of us • when they were told our name 13%
people who didn’t recognise our name • or know who we were 23%
Gathering insight into We need to know: This time last year, people’s attitudes towards 17% people could name ●● Who uses us and why. their consumer rights – us “unprompted” – that is, and linked to that, their ●● Why people might they named “the Financial understanding of “the not be using us. Ombudsman” when asked ombudsman” – is essential where they would go with ●● What we can do to to planning our awareness- an unresolved complaint make it easier for raising work. about a financial business. people to come to us Our latest results indicate if they need to. that this has increased to 116 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 117 who complained to us
one in five people – rising This means that, in total, We try never to call to one in four when looking 77% of adults were aware ourselves “FOS” – which at consumers aged between of the ombudsman (an we know many people 35 and 64. increase from 73% in the find confusing. Instead, previous year). we have been focusing In addition, a further 57% on making ourselves of people said they knew more pronounceable about us when they were – om-buds-man – prompted with our name. and more approachable.
a bit of a mouthful to say who complained to us to who complained worth it to get your problem sorted
awareness of the ombudsman service across different groups of consumers men 78% women 77% 18 to 24 year olds 43% 45 to 64 year olds 88% Asian/Asian British consumers 57% black/black British consumers 58% white consumers 80% professionals and managers (AB consumers) 84% skilled and semi-skilled (C1/C2) consumers 78% unskilled (DE) consumers 69% people in Wales 81% people in Northern Ireland 71% people in Scotland 78% people in England 77%
118 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 119 who complained to us
consumers who don’t Looking at the 28% of use our service people who weren’t satisfied, 39% took no It’s also important that further action – and didn’t we try to understand how follow up their complaint consumers feel about with us or with another making complaints. organisation. This compares This helps us better with 56% of consumers in understand people’s the previous year. choices about what to do – and how far to We asked the people who take things – when a had chosen to give up their I had other us to who complained problem arises. complaint why they had made this decision. more important This year 18% of people told us they’d had a Their answers are on the priorities problem with a financial next page. product or service – compared with 16% in the previous year. Of these people, nearly two thirds (63%) said they went on to make a formal complaint to the business involved (68% in the previous year). And 72% of the people who made a complaint said they were satisfied with the business’s response.
I found it too stressful
118 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 119 who complained to us
why consumers said they didn’t pursue a complaint – even if they were unhappy with the business’s response
‘‘I didn’t think it would achieve 19%
anything’’ us to who complained 35% ‘‘I found it too stressful’’
‘‘I found the 12% business difficult 15% to deal with’’ ‘‘I didn’t think it was worth my time’’ 8% ‘‘I had other 6% more important 5% priorities’’ ‘‘It didn’t seem Other reasons worth it for the money involved’’
The majority of consumers During the year the who didn’t pursue proportion of people who complaints – either with said they didn’t pursue the business in question a complaint because or with the ombudsman they “found the financial service – said that they business difficult to deal couldn’t see the point in with” increased from complaining, or that they 11% to 15%. would find complaining too stressful.
120 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 121 who complained to us
trust It’s vital to our work that Despite these tensions, people trust us to resolve 70% of adults across the complaints fairly and UK say they would trust impartially. However, us. This compares with we know from some of the 75% of people who say conversations we have that they would trust their not everyone understands local Trading Standards, our role. To change this, and 81% of people who say we first need to understand they would trust Citizens people’s expectations Advice – both of which are who complained to us to who complained of “the ombudsman” consumer bodies. – and any misconceptions However, levels of that might exist. consumer trust in financial For example, over the past services trade associations year, we met thousands remain significantly lower of consumers face-to-face at 47%. – at events ranging from Among people who knew disability exhibitions to who we were but hadn’t student advice fairs. actually used us, 15% Some people thought we would have total trust in us. were the regulator, asking This compares with 29% “how can you let them get who would trust Citizens away with it?” In the eyes Advice completely and 3% of these consumers, who would trust a financial we are part of an industry services trade association they mistrust – and they completely. might not use our service as a result. However, 65% of the people who had actually On the other hand, used our service had total some people thought trust in us – more than we were a consumer four times the level of champion, saying “we need trust among people who someone like you to stand hadn’t used us. up for us”. This is something it is equally important we clarify. It is likely, for example, that someone who thinks we are “on their side” – but whose 70% of adults complaint we don’t uphold – will be more disappointed across the UK said they with our service than someone whose complaint would trust us we didn’t uphold, but who knew from the start that we would be impartial.
120 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 121 who complained to us
how consumers who had an enquiry handled by us rated our service
it was easy to find out how to contact us 95% 5%
the enquiry was dealt with promptly 92% 8%
we showed an interest in the individual enquiry 91% 9%
we knew enough to be able to answer questions who complained to us to who complained 85% 15%
we gave a clear explanation of what would happen next 92% 8%
we did what we said we would do 87% 13% • consumers who agree • consumers who disagree
how consumers who had a complaint decided by us rated our service
we handle complaints efficiently and professionally 80% 10% 10%
we get to the bottom of complaints and deal with the issues thoroughly 78% 8% 14%
our decisions on cases are fair and unbiased 67% 13% 20%
we settle disputes within an acceptable length of time 61% 15% 24%
we provide a good dispute-resolution service for consumers 76% 8% 16%
we provide a service that you would recommend to family and friends 80% 7% 13% • consumers who agree • consumers who express no view • consumers who disagree
122 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 123 who complained to us
80% of people During the year we But we know that resolving asked consumers what complaints as quickly as said they would they thought about our people want is the area service. This included where we perform least recommend us email surveys completed well – largely because of by 27,000 people who the surge of PPI complaints had phoned our consumer and the challenges of helpline, and postal gearing up our operations surveys sent to 11,000 to deal with unprecedented people whose complaints demand. There is more we had looked into. information about our
timeliness in the chapter us to who complained We were pleased that called “how we dealt with people rated certain the complaints”. aspects of our service so highly – like our staff’s During the year 80% of knowledge and genuine people whose complaints interest in their enquiry. we handled said they People also said they were would recommend us to more satisfied with our family and friends – up timeliness than in previous from 72% last year. Having years. This may be because our service recommended of the work we’ve done to by customers is important explain to people with PPI to us because our complaints why they’re research shows that many having to wait longer than consumers first heard we’d like. about us from a friend, relative or colleague.
how many people think we’re …
helpful and approachable very quite not really not at all 48% 29% 11.5% 11.5%
independent and impartial 49% 28% 11% 12%
authoritative and knowledgeable 51% 27% 10.5% 11.5%
capable and efficient 47% 24% 15% 14%
respected and influential 49% 28% 10% 13%
122 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 123 who complained to us
how the outcome of a complaint affected consumers’ views of our service
In our postal surveys, of those consumers who said they felt they’d “won” their complaint:
95% gave us positive feedback on the level • of service we provided – up from 90% last year.
4% gave us negative feedback – down from
• 7% last year. us to who complained • 1% expressed no view.
In contrast, of those consumers who said they felt they’d “lost” their complaint:
58% gave us positive feedback • – up from 48% last year.
28% gave us negative feedback • – down from 39% last year. • 14% expressed no view.
124 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 125 who complained to us
96% of consumers who Although people would felt they had “won” their clearly like to have their complaint said they would cases upheld, the following recommend our service, comments from consumers whereas 65% of people indicate the wider aspects who felt they had “lost” of customer experience that their case said they would really matter to people. recommend us. This shows how people’s perception of our service tends to be influenced by who complained to us to who complained how they see the outcome of their own complaint. Even so, many of those people who didn’t get the ”It makes me feel outcome they had hoped as though it’s my fault for still expressed some positive views about their for not understanding experience of bringing a the process.” complaint to us. “I want to talk to someone who’s real and sensible instead of someone who’s following a script to try and “I can’t stand being passed defend themselves.” from pillar to post for weeks on end. How hard can it be to just sort it out?” “I don’t need endless detailed explanations about things that aren’t relevant to me.”
“I just want someone to explain what’s happened and what I need to do.”
124 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 125 who complained to us
our website users To find out more about our Knowing what kinds of people do and don’t Each day during the year an website users, we run an use our website helps average of 17,100 people online survey each year. us make decisions on logged onto our website – This year we found that: its design and content. www.financial-ombudsman. ●● 87% of users were And it helps when we’re org.uk. There is more consumers and 13% deciding the best channels information in the chapter were using our website of communication to get called “the complaints we for business purposes. our messages across received” about how our ●● effectively. website forms a major part 55% of users were male of our frontline service to and 45% female. who complained to us to who complained customers. ●● 72% of users said they would definitely visit our website again and 23% said they would probably do so.
the information people looked for on our website
• information on how to complain 27% • how to contact us 22.5% • other details about us 14% • frequently-asked questions 12% • complaints data 9% • news updates 6% • publications for consumers 5% • other information 4.5%
126 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 127 who complained to us
the age of our website users
5% under 25 1%
20% 25 to 34 11%
35 to 44 22% 17%
45 to 54 25%
24% us to who complained
55 to 64 20% 19%
over 65 8% 28% • who used our website • who complained to the ombudsman
The proportions of people Research we carried out in each age group who used during the year shows our website during the year that 18% of people remained very similar to between 55 and 64 who previous years. use our service don’t have internet access – rising to Consumers over 49% of the over 65s. 65 continued to be significantly more likely On the other hand, people to refer a complaint to us between 25 and 34 are than they are to look at our around twice as likely to website. This may reflect visit our website as they are the fact that a relatively to refer a complaint to us. high proportion of older people still don’t – or can’t – use the internet.
126 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 127 who complained to us
where our website users came from
South East 25% (including Greater London) 28% 16% North West 12% 15.5% Midlands 20% 9.5% South West
9% us to who complained 7% North East 10% 6% East Anglia 5% 6% Wales 5% 4% Scotland 9% 2% Northern Ireland 2% 9% outside the UK – • who use our website • who complain to the ombudsman
The spread of people using our website across the UK is very similar to previous years. Our website attracts a significant number of overseas visitors. Their feedback shows that they are comparing the approach we take to resolving different types of financial complaints in the UK with approaches taken in their own countries.
128 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 129 who complained to us
how people found out about our website
• through an internet search engine 55% • from a financial business 22% • from a friend or colleague 11%
• through a link on another website 9% us to who complained • from a newspaper or magazine 3%
The majority of people continue to say that they found our website through web searches – mostly using Google. Other websites that direct many people to ours continue to include bbc.co.uk, moneysavingexpert.com and thisismoney.co.uk.
128 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 129 who complained to us
the words people search for to get to our website
ombudsman direct debit complaint PPI claim section 75 consumer credit act banking ombudsman complaint watchdog car insurance ombudsman financial ombudsman PPI ombudsman car insurance ombudsman fos
130 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 131
who complained to us 130 annual review 2013/2014 FinancialOmbudsman Service
Financial Ombudsman Service annual review 2013/2014
131 who the complaints were about who the complaints were about
businesses we received complaints about – by sector
• banks 79% • general insurers 5.5% • general insurance intermediaries 5% • building societies 4% life insurance and investment businesses • product providers 2.5% complained about – by sector businesses with a • consumer credit licence 1%
• mortgage intermediaries 1% about were who the complaints • independent financial advisers (IFAs) 0.5% other (including fund managers • and stockbrokers) 1.5%
These charts show how Once again, the proportion the new complaints we of complaints involving received during the year banks rose during the year were spread across the – from 76% last year to different sectors of the 79%. This reflects the high financial services industry. proportion of complaints about payment protection insurance (PPI) that we continued to receive during the year. The proportions of cases involving all other sectors remained broadly similar to the previous year.
132 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 133 who the complaints were about
products we received complaints about – by sector
These charts split the new complaints we received into product areas – and show how these complaints were spread across the different sectors of the industry.
complaints about PPI complaints about mortgages
87% banks 69% banks
5% insurance intermediaries 16% mortgage intermediaries 4% building societies 8% building societies 2% general insurers 2% IFAs 2% other who the complaints were about were who the complaints 5% other (including non-bank mortgage providers) complaints about general insurance (excluding PPI)
58% general insurers complaints about investment products 16% insurance intermediaries 46% lif e insurance and investment 14% banks product providers
7% life insurance and investment 24% banks product providers 13% IF As 1% Society of Lloyd’s 6% stockbrokers and 4% other (including cash-plan fund managers health insurers) 2% building societies
9% other complaints about banking and credit
77% banks complaints about pensions
10% businesses with a 53% life insurance consumer credit licence and investment product providers 7% mortgage intermediaries 23% IF As
3% building societies 8% banks
3% other 16% other
132 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 133 who the complaints were about
range of case outcomes On page 78 we also refer to The chart below shows the six-monthly sets of data the outcome of cases we On page 78 we show the published on our website handled during the year outcome of the complaints – relating to around 200 – by financial sector. we handled during the individual businesses that course of the year – split together account for 95% of by the different financial our complaints workload. products involved. Looking at the outcomes by product, This data shows the the proportion of cases number of new complaints we upheld in favour of – and the proportion of consumers ranged from complaints we upheld in 2% (in complaints about favour of consumers – for SERPs) to 80% (in complaints each of these businesses. about interest-rate This uphold rate varied hedging products). substantially from business to business during the year – from 2% to 94%. who the complaints were about were who the complaints
% of cases we upheld – by financial sector
intermediaries selling PPI 76%
banks 62%
general insurers 52%
businesses with a consumer credit licence 48%
independent financial advisers (IFAs) 42%
intermediaries selling general insurance 39%
intermediaries selling banking and/or mortgage products 37%
life insurance and investment product providers 29%
building societies 9%
134 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 135 who the complaints were about
how the complaints referred to us were spread across the businesses we cover
2,502 businesses each had 1 complaint referred to the ombudsman service during the year
710 businesses each had 2 complaints to the ombudsman
335 businesses each had 3 complaints to the ombudsman
680 businesses each had between 4 and 10 complaints to the ombudsman
220 businesses each had between 11 and 20 complaints to the ombudsman
190 businesses each had between 21 and 50 complaints to the ombudsman
93 businesses each had between 51 and 100 complaints to the ombudsman about were who the complaints
76 businesses each had between 101 and 250 complaints to the ombudsman
42 businesses each had between 251 and 500 complaints to the ombudsman
58 businesses each had more than 500 complaints referred to the ombudsman during the year
The ombudsman service ●● 27,000 banking, covers around 80,000 mortgage, investment businesses that provide all and insurance firms kinds of financial products regulated by the Financial and services including: Conduct Authority.
●● 50,000 businesses The businesses we cover that offer some form of range in size from global credit to consumers – financial services groups and since 1 April 2014 to sole traders who provide have been subject to credit as a sideline to their the consumer protection main business. This range rules of the Financial in size is reflected in the Conduct Authority. Before number of complaints we 1 April 2014 we covered received about the different businesses that held a businesses we cover. standard consumer This followed a very similar credit licence issued pattern to previous years. by the former Office of Fair Trading.
134 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 135 who the complaints were about
3% of cases were from 4,504 businesses (with 25 or fewer cases each)
34% of cases were from 346 businesses banking groups (with between 26 and 4 accounted for 3,000 cases each)
63% of new cases about were who the complaints
During the year around At the other end of the 5% of the total number of scale, 237 cases (0.05% businesses covered by the of all complaints) related ombudsman service had to friendly societies and complaints referred to us. 108 complaints involved credit unions (222 in Four of the UK’s largest the previous year). banking groups accounted for 324,093 cases – 63% In April 2013 we introduced of all the complaints we new case fee arrangements received. – and raised the number of free cases for each business from 3 to 25. During the year, 4,504 businesses – out of 9 out of 10 the 4,906 individual businesses paid no businesses that had complaints referred to case fees us – had fewer than 26 complaints. This meant that nine out of ten businesses who had cases referred to us paid no case fees.
136 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 137 who the complaints were about
how managers working in financial businesses rated our service
the financial services industry can have confidence in the ombudsman service
57% 27% 16%
our service is good value for businesses who pay the levy/case fees that fund us
47% 30% 23%
our decisions on cases are fair and unbiased
39% 26% 35%
our decisions are consistent
39% 19% 42%
we provide a good dispute-resolution service for businesses
56% 27% 17% who the complaints were about were who the complaints • % who agreed • % who expressed no view • % who disagreed
how complaints handlers working in financial businesses rated our service
we handle complaints efficiently and professionally
75% 22% 3%
we get to the bottom of complaints and deal with the issues thoroughly
72% 15% 13%
our decisions are fair and unbiased
70% 14% 16%
we settle disputes within an acceptable length of time
52% 24% 24%
general satisfaction with our service
68% 14% 18%
• % who agreed • % who expressed no view • % who disagreed
136 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 137 who the complaints were about
We carry out regular We focus our surveys on The other group includes engagement with financial surveys to see how the two different groups of the people at financial businesses and trade businesses we deal with people working in financial businesses who handle associations rate our service. These businesses. One group individual complaints and In the chapter called surveys cover all sectors includes management have a more hands-on “other work we have done” of the financial services – for example, heads of relationship with us. we describe our approach industry – ranging from the compliance, customer The feedback from these to sharing our insight with largest financial groups to service managers, legal two groups is usually the financial services sector smaller businesses that advisers and company different. For example, – to help build confidence. only rarely have complaints secretaries. We may not during the year 68% of This included training and referred to us. work with these people complaints handlers were guidance on complaints regularly in our casework. generally satisfied with our handling – as well as the service – compared with work of our advice desk to who the complaints were about were who the complaints 56% of managers. However, support businesses. managers’ we were pleased to hear During the year we asked that managers’ confidence confidence in businesses what they think in the ombudsman service about the way we share increased significantly the ombudsman information with them during the year – from 48% about our work – and which to 57%. service increased of our support services significantly they value the most.
which of our support services businesses valued most
• ombudsman news 35% our website (including our • online technical resource) 26% • our advice desk 21% • events and seminars 10% • other publications 8%
138 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 139 who the complaints were about
queries businesses raised with our advice desk
• our approach to insurance complaints 35% our approach to banking and • credit complaints 29% • our casework procedures 21% • our approach to PPI complaints 10% • our approach to investment complaints 5%
There is more information about the work of our about were who the complaints advice desk in the next chapter – “other work we have done”. For smaller businesses, we also have an outreach team who work closely with trade associations and networks across the country. Our outreach team run meet the ombudsman seminars, where smaller businesses – who are less likely to have direct contact with us – can meet us and ask the ombudsman questions face-to-face.
138 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 139 who the complaints were about
During the year we Belfast hosted events for smaller businesses in: Birmingham Bournemouth Belfast Cardiff Birmingham Crawley Bournemouth Croydon Cardiff Crawley Derry/Londonderry Croydon Durham Derry/Londonderry Edinburgh Durham Leeds Edinburgh Leicester Leeds Liverpool Leicester London Liverpool Manchester London Milton Keynes Manchester Newcastle Milton Keynes Norwich Newcastle Swindon Norwich Swindon
91% of people from smaller This includes making sure businesses who came along that significant caseloads to one of these events said that have already reached it had given them a better us are managed as understanding of complaints effectively and efficiently During the year the of chief executives of handling and the role of as possible – and that any topics we covered in major financial services the ombudsman – which emerging issues are shared our events included institutions. would change the way and discussed. short-term lending, PPI, At the four meetings we they approached customer assessing household We run an industry panel held during the year with complaints in the future. insurance claims, redress involving 600 financial this steering group – and at for investment loss and For the largest financial services practitioners other meetings with senior consumer credit disputes. services groups – that – as well as officials from representatives from the account for the vast over 40 trade associations. We also work strategically industry – we discussed majority of the complaints We keep in regular contact with the financial services strategic issues including referred to us – we with the panel through a industry through more our funding mechanism and work hard to maintain monthly email newsletter formal arrangements. major trends in complaints. constructive relationships and a series of events, These include a cross- Minutes of the various at both a strategic and including conferences and sector steering group, meetings of the steering an operational level. workshops on complaints- which is chaired by our group are available on related topics. chairman and made up our website.
140 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 141 who the complaints were about
Belfast Birmingham Bournemouth Cardiff Crawley Croydon Derry/Londonderry Durham Edinburgh Leeds Leicester Liverpool other work we have done have we other work London Manchester Milton Keynes Newcastle Norwich Swindon
140 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 141 other work we have done
Our work in settling our work with the Our main areas of work with As well as the financial financial complaints regulators the regulators during the services regulators, we is underpinned by year included: also work with other Some of our most our relationships with regulators whose activities important relationships are ●● Helping to put in place our customers and have an impact on our own with the financial services practical measures for stakeholders. These customers and operations. regulators – the bodies the FCA’s new remit in relationships are very that set the rules that relation to consumer For example, we regularly much two-way. We not only the businesses we cover credit regulation. provide the Claims share our own knowledge must follow. Management Regulator and experience, but also ●● Sharing information with (CMR) – part of the seek formal and informal This year we continued the OFT – describing Ministry of Justice – feedback on our service to work closely with the patterns of complaints with information about and how we operate. Financial Conduct Authority and highlighting areas of the numbers and types
(FCA) – in its first full year poor practice where we done have we other work This chapter highlights the of complaints that claims- of operation since it took found them. For example, wide range of stakeholders management companies over from the Financial we shared our insight and customers we engaged refer to us. And this year, Services Authority in April into the complaints we with during 2013/2014 – we worked alongside the 2013. We also worked with were receiving about and the particular issues CMR as it drafted and the Office of Fair Trading payday lenders when and activities this involved. consulted on proposals (OFT) – which during the the OFT reviewed that to amend the Conduct of year was responsible market. Authorised Persons Rules for licensing businesses ●● Contributing to the FCA’s – which relate to the providing consumer credit. “thematic reviews” of service standards that This responsibility was specific products and claims-management transferred to the FCA in services. In particular, companies must meet. April 2014. as part of the FCA’s If we see that claims Our joint coordination review of how businesses managers aren’t complying committee – bringing handle complaints, we with these rules, we notify together the ombudsman, offered our detailed their regulator. the FCA and the OFT analysis of trends we see – met twice over the year. in the complaints that reach us. These regular discussions help to identify early ●● Working together on on any issues that our plan and budget, could potentially affect which we consult our consumers or businesses. stakeholders on each The discussions also year – and which the help determine whether FCA must approve. regulatory action is needed.
142 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 143 other work we have done
our work with the financial In the chapter called “what our national and services sector the complaints were about” international role we talk about ways we The everyday working A recurring theme in our cooperated with businesses relationships that our work with our stakeholders over the year to overcome casehandlers have with this year was the future of particular problems they financial businesses are complaints and complaint- were having. For example, crucial to sorting out handling. At national we worked closely with a consumers’ complaints. level, we were asked number of banks that had But we also take a strategic for our insight at two IT glitches – which had approach to dealing with parliamentary inquiries. led to many customers not the businesses we cover. And internationally, we being able to access the This helps us make sure were involved in the final money in their accounts for that our wider messages stages of plans to improve
a period of time. done have we other work and objectives are dispute resolution for communicated effectively – However, we also try to consumers across the and at an appropriate level. take a longer-term view European Union. – working with business We meet individually with We have close relationships and other stakeholders to the largest businesses that with other ombudsman address broader issues account for the majority of schemes in the UK – affecting the industry. For the complaints we receive. as well as other types of example, in 2013/2014 One way we do this is organisation providing we responded to the through our cross-sector a similar service. As we Association of British steering group meetings, explained in the chapter Insurers’ proposal to where our chairman and called “the complaints we amend the Critical Illness chief executives from these received”, we signpost Insurance Statement of businesses discuss major many consumers to other Best Practice. We also issues – for example, organisations where replied to the consultation our plan and budget it looks like we can’t on Sir Richard Lambert’s and complaint trends. deal with a complaint Banking Standards Review. The group met four times – but someone else could. last year – and the minutes of those meetings are published on our website. On an operational level, we share information with businesses about the complaints their customers are referring to us – to help them identify where they can improve their business practices, handle complaints better, and prevent complaints from arising in the first place.
142 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 143 other work we have done
We also cooperate with In December 2013 our chief One way we maintain In May 2013 the European other organisations ombudsman Tony Boorman, relationships with similar Commission finalised its through our membership answered Committee organisations outside Directive on ADR – and of the Ombudsman members’ questions about the UK is through our the related topic of online Association. This brings our work, what the public membership of FIN-NET – dispute resolution (ODR). together ombudsmen and sector could learn from the international network of The aim of the Directive other “alternative dispute it, and how ombudsman financial dispute-resolution is to extend the benefits resolution” (ADR) schemes schemes could cooperate schemes. In November of ADR – that is, dispute
from across Britain and more closely. We also 2013 we hosted FIN-NET’s resolution outside the done have we other work Ireland. Last year we submitted written evidence. annual meeting. As well as courts, like ombudsman took part in a review of meeting representatives schemes – to as many Although we usually the Association – which of established schemes, consumers and businesses refer those consumers aimed to identify how it we also shared our as possible. we can’t help to other can go further in promoting experience with countries UK-based organisations, The Directive will: best practice and raising in the process of setting we sometimes refer them consumers’ awareness up ombudsman schemes ●● Set EU-wide standards to overseas bodies. This of the alternatives to – including South Korea, for providing ADR is why it is important we court action. Cyprus, Singapore and services. always take the time to Uganda. We also took part in two understand each individual ●● Create an EU-wide inquiries by the House situation – so we can get system for resolving of Commons Public the consumer to the right complaints about online Administration Select place at the outset. purchases. Committee into how the ●● Require each member public sector – particularly state to provide an the Parliamentary and ADR service for any Health Service Ombudsman trader who wants – handles complaints and to sign up to one. uses complaints data. Although our service wasn’t directly within the scope of these inquiries – because we deal with complaints about private businesses – we were invited to participate based on the strength of our experience.
144 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 145 other work we have done
We have been active in the The topics we were asked As part of our regular cycle European Commission’s about ranged from our of three-yearly external programme on ADR since approach to complaints reviews, our board invited it began in 2009. During about different financial the Future Foundation to the year we worked products to the way our help us understand how alongside the Department casework teams are consumers’ expectations for Business, Innovation structured. We were often of brands and services and Skills as it talked with able to direct the person are likely to change over the Commission about the making the request to our the next ten years – and content of the Directive website – because our invited our customers’ and and how it should be policy has always been to stakeholders’ views on implemented in the UK. publish as much as we can these issues. The research We were also part of the about our organisation and is available on the Future
Commission’s ODR working our work. Foundation’s micro-site. done have we other work group. The UK Government will now consult on its final plans for implementing the Directive and confirm these later in 2014/2015.
working openly We aim to be as open and helpful as possible when people ask us for information – as well as meeting our obligations under the Freedom of Information Act, which we have been covered by since November 2011. Last year we received more than 370 requests under the Act, made by a variety of people – from consumers with complaints with us to researchers and academics looking into different aspects of financial services.
144 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 145 other work we have done
publishing ombudsman sharing our experience ●● Speaking at external decisions face-to-face seminars and conferences – hosted The Financial Services Act Our outreach and by organisations 2012 came into effect in stakeholder-liaison ranging from Age April 2013 – shortly before activities form a key part of UK and Macmillan last year’s annual review our commitment to sharing Cancer Support to was published. our experience with the the Association of It introduced the outside world. Professional Financial requirement that we As our eyes and ears “on Advisers. publish all of our the ground”, our outreach ombudsmen’s final In addition to our work with team meet our customers decisions (apart from policymakers, we also have and stakeholders face-to- in cases where it would day-to-day relationships
face – listening to their done have we other work be inappropriate to do with many parliamentarians views and concerns about so). During the year we – who take an active financial services, the published 22,968 decisions interest in our work and ombudsman, and wider on our online “decisions engage with us regularly. issues. In 2013/2014 our database”, which can be Last year, this involved: work included: searched by product type, ●● Responding to 601 outcome and key words. ●● Running our relationship- enquiries from MPs management programme – who had contacted for the largest financial us on a particular services groups – as well constituent’s behalf, as our industry steering or asked a broader group and our industry question about our work. panel. ●● Answering over 30 ●● Organising events across ministerial questions. the UK – from issue- specific conferences for ●● Participating in a range larger businesses and of events for MPs and claims managers, to their caseworkers – 25 targeted workshops including complaints for businesses who workshops, constituency we receive few (if any) “drop-in” surgeries, complaints about. and events held at local supermarkets ●● Hosting more than and food banks. 20 training days for community and advice workers across the UK – sharing our insight and approach with people others turn to for help – and hosting our six-monthly consumer liaison forum for representatives from consumer groups.
146 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 147 other work we have done during the year we ran training days for community and advice workers in:
Belfast
Birmingham Brighton Cardiff Chelmsford Coventry Darlington Derby Doncaster
Ealing done have we other work Exeter Glasgow Kilmarnock Leicester Middlesbrough Perth Preston Reading Southampton Southwark Stratford, East London
146 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 147 other work we have done
our advice desk After receiving a record number of enquiries Our advice desk is our what’s in a name? during 2012/2013, dedicated service for the number of calls to our A bank called about a consumer they were taking people dealing with advice desk continued to court for mortgage arrears. The consumer had complaints – including to increase during the undergone gender reassignment surgery – complaints handlers in year. We received 24,551 and was now a woman. On the advice of their financial businesses, enquiries – a 5% increase in-house legal team, the bank had written to the claims managers and on the previous year. consumer explaining that, to comply with court advice workers supporting procedures, the summons needed to mention consumers in their local During the year 78% any previous names they’d had. communities. By giving of people who had used an informal first take on the advice desk said Unfortunately, the bank had used a window envelope a situation, we can help they were “very satisfied” which clearly showed the consumer’s previous, sort out the problem with the service. male name. And the consumer’s male partner, sooner rather than later who hadn’t known about the surgery, had found out. The following examples – preventing a formal The consumer had made a complaint – and the bank illustrate of the diversity complaint from being wasn’t sure how to handle it. of questions we answered. escalated. The bank acknowledged that they had caused the consumer upset and embarrassment. We suggested that they should talk to the consumer about the a lot of hot air impact their actions had had on her. We felt the complaints handler should consult the bank’s own An insurance company called for our take on a specialist diversity team – who may have dealt with farmer’s claim. Frightened by a hot air balloon a similar situation before. However – based on the flying close overhead, the farmer’s cattle had run information we’d heard – we thought compensation into some nearby fencing – causing significant of at least £500 would be appropriate, given the damage to it. However, the insurer wasn’t convinced upset caused. they should pay out – as their buildings insurance policies excluded cover for damage “caused by aerial devices”. We considered the reason behind the exclusion. give and take And we explained to the insurer that we felt it was intended for situations where an “aerial device” An advice worker called for our view on how itself had caused damage. Once we’d pointed this a lender had treated their client. The consumer out, the insurer agreed that it would be unfair to was in financial difficulties – but, despite being apply the exclusion in this case – as the cows, aware of this, the lender had taken money from her not the balloon, had collided with the fence. current account to repay an outstanding balance on a loan account. This had caused the consumer to go over her agreed overdraft limit – and charges were being applied to her current account. We explained to the adviser that, generally speaking, lenders are allowed to use funds from one account to repay an outstanding balance on another – provided the terms of the account allow this. In this case, however, this had caused the consumer to exceed their overdraft – so we felt the lender had acted unfairly.
148 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 149 148 other work we have done annual review 2013/2014 FinancialOmbudsman Service
Financial Ombudsman Service annual review 2013/2014
149 our news updates our news updates
taking the credit complaints help keep up on the Tyne 31 March 2014 things on track 18 March 2014 from getting on the 25 March 2014 we’re meeting smaller electoral roll to cutting in our latest issue of businesses in Newcastle up your old cards, ombudsman news, to share our top tips for the ombudsman shares ombudsman Tony Boorman sorting out complaints some credit scoring tips discusses how complaints credit where it’s due with 50 plus magazine can help improve services 17 March 2014 our news updates our news our plans and budget ... and so forth Tony Boorman chats to 27 March 2014 24 March 2014 BBC Radio 4 You and Yours ... are now finalised and the ombudsman chats to about the problems an approved for 2014/2015 Edinburgh-based Radio unlucky consumer had Forth about the complaints with his credit file reaching out we’re seeing from the area in Manchester Worksop workshop 27 March 2014 learning by the Loch 14 March 2014 visit our stand at the 50 21 March 2014 we’re working with local plus show at Manchester we’re in Inverness, learning consumer advisers in Central – to chat with about the problems Worksop to share our the ombudsman about consumer advisers are approach to some of the problems on you mind seeing – and sharing how common problems they see we can help them help technically tweeting Scot a complaint? their clients 27 March 2014 13 March 2014 follow our outreach team gathering in the Highlands we chat to Real Radio @financialombuds as 20 March 2014 Scotland and Dundee- we tweet live from our we join the knowledge based station Wave 102 technical helpline network at the fourth about the complaints we’re annual Citizens Advice getting from the area talking business in Highland Gathering in Bournemouth getting complaints on track Strathpeffer – to talk about 27 March 2014 13 March 2014 our role and how we can we’re meeting with Tony Boorman, help financial businesses in ombudsman, talks at the Bournemouth, working we can work it out Office of Rail Regulation’s through case studies and 19 March 2014 annual conference helping them get things we’re in Liverpool, chatting – on how ombudsmen sorted for their customers with local businesses help to make markets about their experiences work fairly for people scam emails with complaints – and with problems 26 March 2014 explaining how we can help beware fraudulent forging relationships them work things out for emails claiming to be in Sheffield their customers from the ombudsman 13 March 2014 spreading the word we’re listening to sorting out problems in in Wales community advisers to Peterborough 19 March 2014 find out more about the 25 March 2014 we’re heading to Swansea financial hardship faced by we’re in Cambridgeshire to meet local community people in Sheffield chatting to consumer advisers and share our advisers about how we can approach to complaints help with payday lending about financial hardship and mortgage problems and payday lending
150 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 151 our news updates
reaching out to the forum staying savvy foundations for the future 13 March 2014 3 March 2014 21 February 2014 we’re at the Consumer Martyn James from the our latest three-yearly Council’s financial forum ombudsman chats to Sarah external review is now well talking about our outreach Pennells of SavvyWoman underway, with the Future work across Northern about what people can do if Foundation working with Ireland they have a home insurance the ombudsman and a problem and how the wide range of stakeholders on the money ombudsman can help on the future of complaint updates our news 12 March 2014 resolution in 2025 we chat to BBC Radio 4 changes to our “voluntary Money Box Live about all jurisdiction” rules on social in Scotland things insurance – and how “eligible complainants” 20 February 2014 the ombudsman can help 28 February 2014 follow our live tweets @ with complaints FinancialOmbuds to find Woking 9 to 5 out what money matters talking credit in Blackpool 27 February 2014 are troubling our Glasgow 12 March 2014 we’re in Woking meeting community we’re at the Credit with local community Awareness Conference in advisers – to share our heading to Halifax Blackpool – sharing our knowledge of dealing with 20 February 2014 approach to complaints problems about payday we’re meeting members about payday lending lending and people in of the Insurance Institute financial hardship in Yorkshire to talk about learning in Londonderry/ the ombudsman and to Derry breakfast with the share our approach to 10 March 2014 ombudsman insurance complaints we’re with financial 26 February 2014 businesses in Londonderry/ Martyn James from the chop chop Derry, sharing case studies ombudsman chats on the 17 February 2014 and chatting about the BBC1 breakfast show about Nadia from the ombudsman decisions we make all things PPI shares her top tips with Blackhair magazine and PPI mis-selling live from the ombudsman tells the story of how she and moving on 26 February 2014 embraced her natural style 5 March 2014 we tweet live @ ombudsman Tony Boorman FinancialOmbuds from student finance talks at the launch of the our consumer helpline 17 February 2014 Citizens Advice report on as part of National Caroline Tees off with PPI lessons to be learned from Student Money Week 24 February 2014 the PPI mis-selling scandal we’re in student unions Caroline Wayman from the up and down the UK ombudsman releases ombudsman chats to BBC – to let students know latest complaints data Radio Tees about what’s the ombudsman’s here on individual financial happening with PPI to help with bank businesses as far as possible account problems 4 March 2014 24 February 2014 five a day the ombudsman talks 4 March 2014 to Pos’ability magazine ombudsman Tony Boorman – the UK’s biggest disability chats to BBC Radio 5 lifestyle magazine – about Live about our latest why it’s so important to complaints data look after your pennies
150 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 151 our news updates
Court of Appeal ruling on what’s driving complaints? Caley call redress after ombudsman 4 February 2014 27 January 2014 14 February 2014 Martyn James from the we talk to Radio Caley consumers cannot sue ombudsman joins Simon – Glasgow Caledonian a financial business for Mayo on the Radio 2 drive- University’s student radio additional redress after time show, to chat about station – about what accepting compensation what we’re seeing with PPI happens when there’s through the ombudsman, an IT bank glitch and what’s the scam? rules Court of Appeal customers can’t get updates our news 3 February 2014 their cash the sky’s the limit we talk on BBC Solent 14 February 2014 about local victims of payday loan danger-day Caroline Wayman from the “vishing” frauds who’ve 24 January 2014 ombudsman talks to Sky turned to the ombudsman today’s when people are News about annuities for help most likely to turn to a payday loan to bridge that advice for stormy times fair outcomes for gap between Christmas and 13 February 2014 customers their next pay packet if you’ve been affected 31 January 2014 by the recent storms and ombudsman Tony Boorman leading the way floods – and are worried talks to the Insurance 21 January 2014 about your insurance Institute of London about we talk to financial – check out our tips on what an insurer should advisers at the APFA BBC online know about its customers regional seminar in Leeds about resolving complaints it’s National Student carrying the torch and what we’re seeing Money Week to Stratford at the ombudsman 11 February 2014 30 January 2014 we’re talking to URN we’re near the Olympic park gone vishing – a student radio station in Stratford, East London, 20 January 2014 in Nottingham – about what meeting community we highlight the story young people can do if they advisers to talk about the of a consumer who was run into problems with credit issues they’re seeing and caught out by “vishing” how we can help them get – the scam where people knowing Your Money things sorted are conned over the phone 8 February 2014 into transferring money as the banks announce latest figures on the into a fraudster’s account what money they’re putting complaints we’re seeing aside to cover PPI claims, 28 January 2014 cheque this we talk to BBC Your Money in our latest issue of 17 January 2014 about the story so far ombudsman news the ombudsman’s on BBC ombudsman Tony Boorman Radio 4 You and Yours 5,000 and counting discusses our plans for the to chat about cheque 7 February 2014 year ahead – and we share problems we’ve just been joined on our latest figures on the Twitter @financialombuds banking on land complaints we’re seeing by our 5,000th follower investments? – so thanks to everyone 16 January 2014 for taking an interest in we talk to BBC Radio 4 what we You and Yours about so called “land banking”
152 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 153 our news updates
Pinterest only new year solutions ombudsmen go to 15 January 2014 2 January 2014 parliament check out the ombudsman we chat on the BBC1 10 December 2013 on Pinterest – the pinboard- breakfast show about ombudsman Tony style photo-sharing getting the year off to a Boorman talks to the website – for all our videos, good start moneywise House of Commons’ Public magazine articles and Administration Committee good as gold pictures from out and about about the work of the 23 December 2013 different ombudsman updates our news all’s fair in love and we’ve been awarded schemes in the UK Warwickshire the “Gold Standard” for 10 January 2014 the third year running down in Dorset ombudsman Tony Boorman by Committed2Equality 4 December 2013 chats to BBC Radio – in recognition of our we’re meeting consumer Coventry and Warwickshire commitment to the fair advisers in Dorset, about the complaints we’re and equal treatment of looking at cases where receiving from the area and everyone we deal with the consumer is facing how the ombudsman financial hardship elf-y finances is able to help 20 December 2013 mind the gap ombudsman consults on some of the ombudsman’s 29 November 2013 annual plan and budget little helpers give their top the ombudsman talks 9 January 2014 Christmas money tips to about gap insurance on the ombudsman consults Blackhair magazine BBC Radio 4 You and Yours on plans for resolving an helping others get helping out in Hackney unprecedented number of things sorted 28 November 2013 complaints in 2014/2015 18 December 2013 we’re at the Hackney – while reducing the we’re in Maidstone Foodbank serving up budget by 20% talking to Citizens Advice financial advice with out with the old, in with about how the ombudsman Diane Abbott MP the new can help – chatting to people 8 January 2014 in financial hardship ombudsman news on The ombudsman talk and letting them know sorting things out to 50 plus – the local how we can help 17 December 2013 magazine for the over in our latest issue of opening our doors 50s – about how you’re ombudsman news to local advisers never too old to get into ombudsman Tony Boorman 27 November 2013 good spending habits reflects on why people the ombudsman hosts weather warnings come to us at different a drop-in session for 7 January 2014 stages with problems for community and advice as severe weather warnings us to sort out – and we workers in the local continue across the share case studies on neighbourhood of Tower UK, we’ve had a surge debt collection and mobile Hamlets – so they can find of enquiries about our phone insurance out more about what we do approach to storm damage 12 tips of Christmas and insurance problems 16 December 2013 from ladies dancing to savers saving – we share our tips on avoiding a Christmas cash crisis with Pride magazine
152 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 153 our news updates
vulnerability – a new building relationships Brussel sprouts online approach from inside out in Belfast innovators 26 November 2013 19 November 2013 13 November 2013 Caroline Wells from the we’re meeting consumer our webmaster Sally ombudsman talks at the advisers in Belfast Young takes part in a Money Advice Liaison – including the Northern debate hosted by the EU’s Group’s annual conference Ireland Consumer Council, Disability Forum – on best – about our experience Advice NI, Belfast Citizens practice and innovation for
of dealing with cases Advice and the money public service websites updates our news involving vulnerable advice team at Belfast investing in complaints consumers in financial City Council handling in Birmingham hardship is it best to invest? 13 November 2013 live in action 18 November 2013 our ombudsmen talk with 25 November 2013 we chat to BBC Radio 4 financial advisers in the a group of consumers You and Yours about West Midlands about our with PPI complaints come unsuitable investments approach to resolving to visit the ombudsman and what your rights are investment disputes at our office – to meet and if something goes wrong still doing the right thing chat with staff face-to-face Natalie Ceeney, chief 11 November 2013 and to see our work on ombudsman, steps down we introduce our latest PPI first hand after four years work to connect with linking up in Londonderry/ 15 November 2013 people in Glasgow who Derry might not think that the kicking off at 19 November 2013 ombudsman is for them Crawley Town we’re meeting constituency 15 November 2013 working with other caseworkers who help we’re at Crawley Town ombudsman across Europe Mark Durkan MP and Football Club meeting 8 November 2013 Pat Ramsey MP sort out smaller businesses we’re hosting the annual their constituents’ financial – to find out more about meeting of FIN-NET this problems in Londonderry/ what they’re seeing and week – the organisation Derry to share our approach to that brings together meeting MPs and MLAs complaints handling financial ombudsman in Belfast schemes across Europe problem sharing in 19 November 2013 Portsmouth helping out at the we’re hosting a drop-in 14 November 2013 50 plus show session for Belfast MPs we’re talking to community 8 November 2013 and MLAs – to let them and advice workers in we’re on the panel at the know more about the Portsmouth about our 50 plus show in Glasgow ombudsman and how we approach to complaints – answering money- can help their constituents involving financial hardship related questions from the get things sorted and payday lending audience and letting them know how we can help them get things sorted
154 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 155 our news updates
stormy weather how dementia-friendly five alive 7 November 2013 are you? 22 October 2013 David Cresswell from 31 October 2013 we’re on BBC Five Live the ombudsman chats as the population ages, breakfast show, talking on Radio 4 You and Yours we’re likely to be seeing about the complaint about insurance claims more people affected numbers we’ve for storm damage by dementia – which is released today why we’re supporting sharing the credit ombudsman news the Alzheimer’s Society’s updates our news 7 November 2013 22 October 2013 dementia-friendly financial we’re meeting new the latest issue of services charter members of the Finance ombudsman news includes and Leasing Association warning! scam phone calls complaints statistics and (FLA) to let them know more 31 October 2013 case studies on travel about our approach to be suspicious if people insurance and credit cards consumer credit disputes phone you unexpectedly hearing what’s going – and how we deal with claiming to be from the on in the Highlands complaints involving ombudsman 18 October 2013 smaller businesses brummie broadcast we’re in Inverness talking sharing our approach to 29 October 2013 to local businesses help get things sorted ombudsman Caroline about our role in getting 6 November 2013 Wayman gives us the complaints sorted – we’re meeting smaller latest on PPI on BBC and hosting a drop-in financial businesses in Radio West Midlands session for consumers London to find out what with Danny Alexander MP leading the way issues are affecting them 25 October 2013 the power of listening Irish travels we’ve been awarded 17 October 2013 2 November 2013 Leaders in Diversity Natalie Ceeney, David Cresswell from status by the National ombudsman, speaks at the ombudsman chats Centre for Diversity the annual international to BBC Northern Ireland’s banking conference about watch out On Your Behalf about travel the power of listening to 24 October 2013 insurance problems rebuild trust in financial we’re on BBC Watchdog services meeting consumer talking about “packaged” advisers in Crawley bank accounts – and how we’re in the Western Isles 1 November 2013 the ombudsman can help 17 October 2013 we’re in Sussex – where if you have a problem we’re meeting Harris 8,000 people have called and Lewis Citizens Advice catching up in Conwy us from so far this year to share our approach 23 October 2013 – to share our approach to complaints where we’re in Conwy in North to complaints about consumers are in financial Wales, meeting local payday lending and hardship consumer advisers to share financial hardship our approach
154 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 155 our news updates
sorting things out getting things sorted working with Age UK in Stornoway with insurers 25 September 2013 16 October 2013 9 October 2013 last year over a quarter of complaints from people in we host an event for complaints we received the Outer Hebrides doubled insurance companies to were from people aged 65 last year – so we’re visiting share our approach to and over – so we’re talking Stornoway to talk about cases where there’s a to Age UK to share how how we can help get disagreement over the the ombudsman can help
things sorted items being claimed people move on updates our news
carry on caravanning worried about your young consumers-v-MPs 15 October 2013 credit rating? 24 September 2013 we’re at the Motorhome 4 October 2013 Sir Nicholas Montagu, and Caravan Show at the we join SavvyWoman’s ombudsman chairman, NEC – one of the busiest Sarah Pennells to answer all is quiz-master for the consumer events in the your credit rating queries young consumers-v- UK – letting people know parliamentarians money communicating in Croydon about the ombudsman quiz – that we’re hosting 3 October 2013 and how we can help them with Trading Standards Croydon was one of the get things sorted in Brighton top ten places consumers access all areas called us from last year – constituency business 14 October 2013 so we’re talking to smaller 23 September 2013 Access magazine features businesses there about with over 500 people ombudsman, Nic Atkinson, what good complaint contacting the ombudsman talking about how he handling looks like through their local MP makes a wheelchair work each year, it’s important working together in for him in the workplace that elected representatives Maidstone know about our role losing out through loyalty 1 October 2013 – and how we can 14 October 2013 we’re crossing the River help them help their David Cresswell from the Medway to meet with constituents ombudsman talks on community and advice Radio 4 You and Yours workers in Maidstone and and the winner is ... about complaints involving listen to the problems 20 September 2013 insurance “auto-renewal” they’re seeing Caroline Wells from the ombudsman announces pop-in and see young consumers the winner of the positive us in Preston take on MPs role model for age at the 13 October 2013 29 September 2013 National Diversity Awards we’re with Mark Hendrick school children from MP in Preston – where Manchester take on MPs meet the ombudsman 1,200 people called us in the “young consumer of at Naidex from last year – talking to the year” quiz – an event 18 September 2013 local consumers about their we host in partnership with we’re at Naidex – the UK’s money worries Trading Standards to help largest independent living raise awareness of money- exhibition – meeting with matters with young people consumers to talk about their financial problems
156 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 157 our news updates
ombudsman news the debt collective up at the lakes 17 September 2013 12 September 2013 10 September 2013 the latest issue of Juliana Campbell from the we’re heading up to Penrith ombudsman news includes ombudsman talks to debt in the Lake District to talk case studies on interest- recovery companies about to the Cumbria Advice rate hedging products and our approach on people Network about the work of “packaged” bank accounts facing financial hardship the ombudsman and our and debt collecting role helping people helping Citizens Advice our news updates our news help others ain’t no mountain competition, conduct 17 September 2013 high enough and complaints we’re at the Citizens Advice 12 September 2013 9 September 2013 annual conference talking we’re meeting Cumbrian Tony Boorman, to consumer advisers about Citizens Advice to talk ombudsman, tells the the issues they’re seeing about our approach to Regulatory Policy Institute complaints involving why the voice of the gathering in Gloucester financial difficulties and consumer needs to be 17 September 2013 consumer credit heard in the boardroom we’re meeting community of financial services advisers in Gloucester sharing our experience institutions to share our approach to in East Anglia complaints about financial 12 September 2013 meeting by the Mersey hardship and PPI we meet smaller 4 September 2013 businesses from across we’re in Liverpool talking to what’s new in Newmarket? East Anglia – to explain local community advisers 16 September 2013 the role of the ombudsman about the ombudsman and we’re getting together with and our approach to sorting how we can help people get the East of England Trading out problems things sorted Standards in Newmarket to hear what’s going on locally getting things sorted reaching out across – and to let them know in Norwich the regions how we can help them 11 September 2013 3 September 2013 get things sorted we’re meeting community from Northern Ireland to advice workers in Norwich Norwich, the ombudsman banishing money to find out about the issues joins 12 radio stations problems in Biggleswade they’re seeing – and to let nationwide to chat about 13 September 2013 them know how we can the record numbers of we’re talking to consumers help get things sorted complaints we’ve sorted about their money worries out this year – and letting them know life’s a beach ... how we can help get things 10 September 2013 ombudsman releases sorted – at a drop-in from lost luggage to missed latest complaints data session hosted by flights – if your dream trip on individual financial Alistair Burt MP turned into the holiday businesses from hell this summer, the 3 September 2013 getting it right ombudsman could help from the start 13 September 2013 we’re giving guidance to financial businesses in Leicester to help them get things right for their customers from the start
156 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 157 our news updates
unbundling the package sharing lessons in Luton Orcadian odyssey 30 August 2013 14 August 2013 27 July 2013 the ombudsman joins we’re in Luton sharing our from trouble with catalogue debates on radio stations approach to complaints shopping to disputes across the UK about about financial hardship involving marine insurance different kinds of bank with consumer advisers – – we listen to people in accounts – including and finding out more about Orkney talking about their “packaged” or “paid for” the issues they’re seeing experience of financial
accounts services, at a “drop-in” updates our news Tees time organised with Orkney unwanted PPI text or call? 12 August 2013 Islands Council 29 August 2013 we talk to BBC Radio Tees find out how you can avoid about the money problems heading to the nuisance calls by following affecting people in the Highlands and Islands guidance from Which? North East of England 25 July 2013 with complaints from catch-up in Coventry payday mayday in NI people in the Highlands 29 August 2013 5 August 2013 more than doubling last we meet the Coventry David Cresswell from the year, we’re hosting drop-in Consumer Network to find ombudsman talks on BBC sessions in Tain and Thurso out about the problems Northern Ireland’s Talkback for consumers to come consumers are talking to show about problems with and talk about their money them about – and how we payday loans problems – in partnership might be able to help payday mayday with John Thurso MP mela-tastic 5 August 2013 high five 23 August 2013 Citizens Advice launch 25 July 2013 we join the multicultural their payday loans: ombudsman Caroline mela celebrations this know your rights campaign Wayman chats to Shelagh weekend in London and – to encourage more Fogarty on BBC Radio Five Leicester – finding out people to contact the Live about “packaged” about the money problems ombudsman for help with accounts people have and helping payday loan problems them get things sorted training for PPI complaint stuck in the Midlands handlers ombudsman news and with you 25 July 2013 older people 4 August 2013 we’re running training 20 August 2013 Caroline Wells from the sessions for case handlers the latest issue of ombudsman talks to BBC from motor and high-street ombudsman news includes WM’s Chatback – a show retailers – to share our well case studies involving older for Black African and established approach to PPI people and aging Caribbean communities complaint handling across the West Midlands money transfer – about money matters ask the ombudsman 15 August 2013 and the ombudsman 24 July 2013 Martyn James from the we’re meeting 70 consumer ombudsman talks to BBC the cost of PPI credit businesses to answer Radio 4 You and Yours 2 August 2013 their questions about the about your rights if money the ombudsman joins ombudsman – and to share transfers go missing Radio 5 Live for the Victoria our approach to consumer Derbyshire show – to talk credit complaints about the impact of PPI on banks, consumers and the ombudsman
158 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 159 our news updates
spreading the word keeping mum South Glamorgan’s 23 July 2013 16 July 2013 financial forum the ombudsman’s running check out the latest issue 8 July 2013 training sessions for the of Mum’s survival guide – the ombudsman joins Citizens Advice helpline to see how Sarah Quigley a range of financial – explaining our role in found her return to work businesses in Cardiff to getting things sorted to the ombudsman after share our insight into good maternity leave complaint handling word up our news updates our news 19 July 2013 ombudsman news has meet us in the Midlands at an event celebrating wear and tear 5 July 2013 the winners of the National 16 July 2013 mela means “gathering” Diversity Awards, the latest issue of in Sanskrit – and this Caroline Wells from the ombudsman news includes weekend we’ll be gathering ombudsman teams up with case studies involving with 125,000 visitors at the poet Liam Mackin, winner investment complaints Birmingham and Sandwell of the positive role model and wear and tear in mela as part of our work award for disability insurance disputes with the Asian community
what’s occurring? reaching out to smaller training in Truro 19 July 2013 businesses 4 July 2013 last year 1,500 people 12 July 2013 the ombudsman’s in called us with money we’re in Cardiff and Truro sharing knowledge problems from Glamorgan Swindon talking to smaller and insight with local – so we’re in Barry working businesses – as part of community advice workers with Alun Cairns MP our series of “meet the keeping it real in Wales to help consumers get ombudsman” roadshows 1 July 2013 things sorted around the UK the ombudsman talks to training for PPI ombudsman at the Real Radio Wales about the complaints handlers 50 plus show complaints we’ve seen from 17 July 2013 11 July 2013 Welsh consumers we’re running a training we’re taking part in a technical data on redress day for 120 PPI complaints consumer question-time for mis-sold pensions handlers from building about money matters 1 July 2013 societies and claims at the 50 plus show at our technical note management companies London Olympia is updated with new – to remind them about aware in Wales assumptions (as from our well established 11 July 2013 1 July 2013) for calculating approach to sorting out with people in Wales redress for mis-sold PPI complaints already showing the pensions catching up in Croydon highest awareness of the BILA 17 July 2013 ombudsman, we listen to 27 June 2013 we visit Croydon to meet their money worries at a ombudsman Caroline front-line community and drop-in “complaints clinic” Wayman talks to the advice workers – and talk in Cardiff, run jointly with British Insurance Law about our approach to Jenny Willott MP Association (BILA) about financial hardship, payday the ombudsman’s approach lending and PPI to complaints involving mis-sold financial products
158 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 159 our news updates
briefing in Bradford putting a name to a face looking after the 27 June 2013 19 June 2013 grey pound we’re in Bradford as part of we’re in Durham, Edinburgh 11 June 2013 our programme of training and Leeds, talking to we’re talking to the All- days in the North West for smaller businesses – Party Parliamentary Group front-line community and as part of our series of on ageing and older people advice workers “meet the ombudsman” – about the complaints roadshows around the UK we see from consumers South Bank show aged 65 and over and the updates our news 26 June 2013 keeping up the standards challenges they face when we’re meeting local MPs 17 June 2013 dealing with their finances and their caseworkers on we’re at the annual Trading London’s South Bank Standards conference – “it wasn’t me …” – to talk about the work highlighting the work of the 11 June 2013 of the ombudsman ombudsman and asking we run our latest and the financial issues trading standards officers conference for businesses their constituents are what the ombudsman in Birmingham – focusing currently facing service means to them on resolving disputed credit and debit card transactions Wigan wanderers stirling talk in Scotland 26 June 2013 13 June 2013 don’t be hoodwinked the ombudsman’s in Wigan the ombudsman joins a 7 June 2013 meeting community advice complaints forum in Stirling we tell BBC Radio workers to share our insight into Nottingham how consumers tackling a record 508,881 can make a PPI claim ship-shape and new money-related without the merry band of Bristol finance disputes over the last year claims managers 25 June 2013 we’re at the National debt in Derbyshire sharing in Sunderland Association of Student 13 June 2013 5 June 2013 Money Advisers conference we’re talking to advice we’re hearing about local in Bristol – chatting to workers at the East issues from community advisers about how to help Midlands Financial advice workers in younger consumers who Capability Forum about Sunderland are taking on financial our approach to financial non-disclosure products for the first time difficulties and payday 5 June 2013 lending making sense with CEnTSA we’ve updated our online 24 June 2013 discussing debt technical resource with our the ombudsman gets in Birmingham approach to non-disclosure together with Central 12 June 2013 in insurance complaints England Trading Standards we’re joining debt advisers – in light of the Consumer Authorities (CEnTSA) in the at the West Midlands Insurance Act 2012 West Midlands – to share Money Advice Group – to our insight and listen to chat about our approach to what’s going on locally disputes involving financial difficulties health check 21 June 2013 we’ve joined forces with Healthy Staff magazine to help employees across 200 NHS trusts spring clean their finances
160 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 161 our news updates
getting together Derry calling farms, fashion and the in Glasgow 23 May 2013 financial ombudsman 4 June 2013 David Cresswell from the 15 May 2013 we’re getting together with ombudsman joins the we’re at the Balmoral Show advice workers at Money BBC Radio Foyle breakfast in Northern Ireland, as Advice Scotland’s annual show – to talk about why part of our ongoing work to conference – to talk about more people than ever in reach people who are less consumers in financial Northern Ireland are feeling likely to know about their
hardship and listen to able to stand up and face a rights to complain updates our news what’s going on in the financial problem next stop Belfast advice sector getting savvy 14 May 2013 the end in Sunderland we’re on the buses in 31 May 2013 23 May 2013 Belfast to promote do the it’s the last showing today the ombudsman meets right thing – a short film of our short film, do the with Julie Elliot MP to on managing your money, right thing, at the Belfast host a drop-in session for made by youth group Moviehouse and Bluewater consumers at Sunderland SE1 United and currently Showcase cinema - but you city library showing at the Belfast can still catch it online Moviehouse news in Newcastle it could be you 23 May 2013 still in Stafford (and yours) … tune into BBC Radio 10 May 2013 31 May 2013 Newcastle this morning we run a complaints drop-in the You and Yours team to hear the ombudsman clinic in Stafford town centre from BBC Radio 4 pay us answering your questions with Jeremy Lefroy MP a visit this week to get an on mortgages, PPI, loans a different route... exclusive look into how we and much more 10 May 2013 deal with PPI complaints city of culture the ombudsman goes stronger consumer voice 23 May 2013 on the buses in Kent to sees half a million people we’re in Derry/Londonderry promote do the right thing, bring disputes talking about debt with a short film made for us 29 May 2013 local advice workers by local youth group SE1 the ombudsman publishes United and showing money advisers meet annual review of personal during May at Bluewater up in Manchester finance disputes Showcase Cinema 20 to 21 May 2013 on the straight and narrow We meet advice workers in speaking up in Stafford 24 May 2013 Manchester at the Institute 9 May 2013 of Money Advisers’ annual we’re in Stafford – sharing we’re meeting insurance conference – to hear about our knowledge with brokers, IFAs and consumer the impact of financial community advice workers credit businesses in Milton hardship on consumers and hearing about local Keynes – to share good issues of concern to practice in complaint international travel consumers handling 16 May 2013 ombudsman Caroline Wayman takes part in the international travel conference at Brighton – to explain the ombudsman’s approach to resolving travel insurance disputes
160 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 161 162 smaller businesses ombudsman” event for running our“meet the financial problems and consumers out sort their we’re at Naidex helping 2 May 2013 in Birmingham getting busy money savvy the right thing andbeing United made about doing that local youth group SE1 check out film theshort 3 May 2013 how to dotheright thing young people show us Ireland’s Talkback studio of BBC Northern – live from theBelfast questions about PPI answers listeners’ the ombudsman service David Cresswell from 8 May 2013 PPI inNI our news updates ombudsman news ombudsman insurance health andprotection resolving complaints about – onassessing claims and businesses inEdinburgh we run ourconference for 30 April2013 in sickness andinhealth accounts (ISAs) and individual savings payday lending involving includes case studies ombudsman news our latest issue of 30 April2013 payday lending annual and review 2013/2014 preventing complaints – giving advice about Societies Association talks to theBuilding ombudsman Clare Mortimer 19 April2013 prevention orcure? workers andMPs knowledge with advice Scotland sharing our the ombudsman’s in 22 April2013 piping up! financial difficulty when consumers are in can approach complaints how financial businesses conference –looking at we run ourlatest 23 April2013 hard times drop-in with IanMurray MP including aconsumer work in Scotland – radio about ouroutreach Edinburgh’s Forth One ombudsman talks to Caroline Wells from the 23 April2013 go forth 25 April2013 Amerdeep Somal independent assessor, appointment of ournew services experience of financial find out more about their consumers andcarers and at NEC –to meet disabled we join theNaidex show 30 April2013 independent living
ombudsman service about therole of the Institute of Chelmsford we talk to theInsurance 10 April2013 Chelmsford insurers chatting with with AnnCoffey MP consumersin Stockport a drop-in session for the ombudsman hosts 11 April2013 Stockport again stopping off in complaint sorted 107.8 FMabout getting a Imagine FMandPure Cheshire radio stations the ombudsman talks to 11 April2013 imagine that cards andconsumer rights BBC Radio York about credit the ombudsman talks to 11 April2013 creditin York keeping ontop of complaints survey into banking news about the Which? ombudsman talks to BBC David Cresswell from the 14 April2013 complaints handling Which? onbanks’ for free PPI complaint themselves they can easily bring a pay aclaims manager when that people don’t needto done get Dom–to explain consumer show, Don’t get the ombudsman joins BBC 16 April2013 DIY PPI Financ ial Ombudsmanial Service
problems sorted complaints andfinancial can get theirPPI about how consumers Box on Radio 4Money ombudsman service talks David Cresswell from the 3 April2013 Money Box live on studentbeans tidy with ourtop tips your student finances – but it’s easy to keep best at spring cleaning students may not bethe 5 April2013 beans of full to non-disclosure long-standing approach reflects theombudsman’s how thenewlegislation 6 April, we explain coming into force on Representations) Act 2012 Insurance (Disclosure and with theConsumer 5 April2013 the ombudsman non-disclosure and the most out of your money handy hints onhow to get over 50’s –focuses on lifestyle magazine for the Retirement Today –the our latest feature in 8 April2013 savvy seniors latest training day outreach team for our Stockport join the community workers in 10 April2013 stopping off at Stockport
Financial Ombudsman Service annual review 2013/2014
163 our board and senior people 162 our news updates annual review 2013/2014 FinancialOmbudsman Service
and independently able to carry out its work effectively service is properly resourced andis directors is to ensure that theombudsman complaints. Their job as “public interest” – they have no involvement inindividual Our board members are “non-executive” Financial Ombudsman Service annual review 2013/2014
163 our board and senior people our board
our board
Sir Nicholas Montagu KCB Gwyn Burr Alan Jenkins
chairman ●● a non-executive ●● a non-executive board ●● chairman of Queen Mary board member of member of the Pension & Westfield Foundation Sainsbury’s Bank Protection Fund
●● chairman of the council ●● a non-executive board ●● a non-executive board of Queen Mary, member of Wembley member of the Crown University of London National Stadium Prosecution Service
●● a non-executive board ●● a non-executive board formerly member of Hammerson plc member of UK Trade &
●● chairman of the board of Investment formerly Inland Revenue ●● chairman of the board of
●● a senior civil servant ●● chair of Business in the trustees of Mencap Trust working on issues ranging Community’s cause-related Company Limited from pensions to public marketing leadership team ●● chairman of the board of service reform ●● customer service and trustees of Lattitude Global colleague director at Volunteering J Sainsbury plc ●● director of Gross Hill
●● managing director of Properties Ltd, Sydney and the Resultant Team London Properties Ltd and Consultancy Northcourt Ltd
●● retail managing director at formerly ASDA/WalMart ●● vice chairman of the ●● European marketing manager at Nestle International Institute Rowntree for Environment & Development
●● independent non-executive at PKF UK LLP
●● partner & chairman of global markets at Eversheds LLP
●● chairman of the board of Eversheds LLP
●● trustee of the London Middle East Institute
●● managing partner of Frere Cholmeley Bischoff
●● governor of Bishop Gilpin as at 31 March 2014 Primary School
our board and senior people
164 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 165 our board
Julian Lee Baroness Maeve Sherlock Pat Stafford
●● chair of Brighton & Sussex OBE ●● vice chair of Guide Dogs University Hospitals Trust ●● a member of the House of ●● a business adviser, Lords ●● Justice of the Peace on the Young Enterprise North Sussex Bench ●● currently doing research ●● mentor, New Leaf for a doctorate at ●● strategy and risk consultant ●● chair, Calverton Parish Durham University
formerly ●● chair of Chapel St formerly (charitable social ●● a commissioner at the enterprises) ●● a non-executive director Legal Services Commission of HMRC ●● a non-executive director formerly ●● group marketing director of the Maritime and at BUPA ●● Coastguard Agency & a commissioner at the and senior people our board ●● managing director of member of the Maritime Equality and Human Rights corporate positioning Advisory Board Commission (EHRC) services and head of ●● a non-executive director of ●● chair of NHS Brighton brands management the Child Maintenance and & Hove & interim chair at British Airways of NHS Surrey Enforcement Commission ●● governor at the University ●● chief executive of the ●● a non-executive director of Bedfordshire of the South East Coast Refugee Council ●● regional board member Ambulance Trust ●● chief executive of the of the Prince’s Trust charity One Parent Families ●● chairman, then chief executive, of Allied ●● a member of the Council of Carpets Group plc Economic Advisers in the Treasury ●● chief executive, Bricom Group plc ●● chair of the National Student Forum ●● joint managing director of British & Commonwealth Holdings plc
●● partner Arthur Andersen
164 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 165 our executive team
Tony Boorman chief executive and chief ombudsman (interim) Liz Brackley director of strategic service development Julia Cavanagh director of finance and performance David Cresswell director of communications and insight Chris McDermott operations director Caroline Wayman principal ombudsman and legal director Jacquie Wiggett director of human resources and organisational development
as at 31 March 2013
166 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 167 our executive team our panel of ombudsmen there are more details about our ombudsmen on our website
Tony Boorman ombudsmen Joanne Chilvers chief ombudsman and Tope Adeyemi Julia Chittenden chief executive (interim) Susan Alegre Carole Clark Caroline Wayman Heather Clayton principal ombudsman Emma Ali-Noor and legal director Janine Allen Melissa Collett lead and managing Claire Allison Juliet Collins ombudsmen Jane Archer Laura Colman Carole Auchterlonie David Ashley Rebecca Connelley Yvette Bannister Nicolas Atkinson Terence Connor Nathan Horner Charles Bacon Peter Cook
David Millington Timothy Bailey Stephen Cooper and senior people our board Caroline Mitchell Hilary Bainbridge Zoe Copley Clare Mortimer Clair Bantin Jonathan Coppin Charlie Sweeney Louise Bardell Ross Crawley Richard Thompson Gregor Barham Michael Crewe Richard West Rosalind Barnett Alison Cribbs Sue Wrigley Audrey Baxter Paul Daniel Phillip Berechree Kim Davenport James Biles Andrew Davies David Bird Elizabeth Dawes Paul Bishop Karen Dennis-Barry Angela Black Simon Dibble Graham Booth Christine Doorly Emma Boothroyd Katie Doran Michelle Boundy Rona Doyle Cathy Bovan Paul Doyle Alexandra Bowen Rachel Ellis Michael Boyall Susan Ewins Roxelana Boyce-Bown Paul Featherstone Sarah Brooks Janet Ferrari Colin Brown Reidy Flynn June Brown Elizabeth Forbes Edward Callaghan Laura Forster Sarah Carter Juliana Francis Nigel Cates Andrew Fraser Silas Catling Christine Fraser Julia Chapman Linda Freestone
continued ▶
166 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 167 our panel of ombudsmen there are more details about our ombudsmen on our website
▶
Simon Furse Laura Layfield Helene Pantelli Suzannah Stuart Geoffrey Futer Simon Leach Charles Park Michael Stubbs Jane Gallacher Ruth Lewis Sharon Parr John Swain Christopher Gilbert Stephen Lilley Jeffrey Parrington Charles Sweet Roderic Glyn-Thomas Daniel Little Kim Parsons Keith Taylor Michael Goldberg Rosemary Lloyd Nimish Patel Niall Taylor Joyce Gordon Daniel Lucas Jonathan Pattinson Stephen Thomas Hamilton Graham Alexander MacDonald Athena Pavlou David Thomas Dawn Griffiths Andrew Macnamara Emma Peters John Thornton Sean Hamilton Naseem Malik Michelle Peters Christopher Tilson Ross Hammond Amrit Mangra Susan Peters Jagdeep Tiwana Jonathan Hanton Douglas Mansell David Poley William Towers James Harris Daniel Martin Nigel Pope Stephen Townsley Carolyn Harwood Kristina Mathews Louise Povey Venetia Trayhurn Henrietta Hastings Roy Mawford Simon Pugh Govindarajan Varadarajan Jarrod Hastings Amanda Maycock John Quinlan Susan Webb Catrin Hennessey Eimear McAllister Sandra Quinn Katherine Wells Richard Hill Siobhan Mcbride Michael Ranaghan Karen Wharton Douglas Hill Harriet McCarthy Simon Rawle John Wightman Jane Hingston Melanie McDonald Roslyn Rawson Amanda Williams Clare Hockney Helen McKenna Paul Reilly Anna Wilshaw Charlotte Holland Una Mckevitt Mark Richardson John Withington Mark Hollands Michael McMahon Stefan Riedel Lindsey Woloski Claire Hopkins Patrick McManus Philip Roberts Catherine Wolthuizen Adrian Hudson Robyn McNamee Fiona Robinson Christian Wood Garry Hunter Andrew McQueen Malcolm Rogers Elspeth Wood Chantelle Hurn Philip Miller Kenneth Rose Rebecca Wood Lale Hussein-Doru Janet Millington Douglas Sayers Nicola Wood Michael Ingram Roy Milne Mark Sceeny Chloe Wooles Claire Jackson Gideon Moore Nicole Shinnick Nicola Woolf David Johnson Ashley More Robert Short Claire Woollerson Colin Keegan Paul Moulder Nicola Sisk Kevin Wright James Kennard Helen Moye Kirsten Smart Lisa Wright Sharon Kerrison Raymond Neighbour Anthony Stafford Roger Yeomans Belinda Knight John Norton Lesley Stead Matthew Young Mark Lancod Claire O’Connor Ruth Stevenson Raymond Lawley Geraldine O’Donnell Caroline Stirling Dianne Lawson Jan O’Leary Joanne Storey
168 annual review 2013/2014 Financial Ombudsman Service our panel of ombudsmen index
168 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 169 index
A C credit cards E 27, 35, 36, 43, 46, 57, 59, access and accessibility caravan insurance 48, 49 electronic payment 47 61, 79, 83, 95, 113 28, 29, 32, 86, 92, 105, carbon trading 72 e-money 66 108, 114 credit reference 46, 79, 80 card protection 47, 50 e-file management 17, 87 adjudicators credit unions 136 case fees enterprise zone schemes 72 15, 26, 74-76, 85, 87 critical illness insurance 81, 88-90, 136, 137 “alternative dispute 48, 49, 143 equality 105, 106 case studies 18, 28, 29, 148 resolution” (ADR) current accounts ethnic communities 144, 145 cash machines (ATMs) 59 27, 39, 43, 46, 57-59, 79, 76, 110, 111, 117 Age UK 28, 106, 116, 146 cash-plan health insurers 133 83, 84, 93-95,103, 113, European Commission 114, 148 alcohol 55 catalogue shopping 144, 145 customer experience alternative formats 43, 46, 57, 62 European Union 143 87, 122, 123, 125 32, 34, 108 chairman, Sir Nicholas Montagu executive team 117, 166 customer research Alzheimer’s and dementia 4, 140, 143, 164 16, 23, 28, 31, 82, 86, 92, 106, 109 charities F 95, 98, 112, 116, 122, 12, 29, 34, 60, 106, 108, 146 faith 76, 112, 113 annuities 46, 68, 71 123, 127, 137, 138 Association of British cheques 28, 47, 67 faster payments service 66 Insurers (ABI) 143 Citizens Advice D film partnerships 47, 72 attitude to complaining 30, 37, 84, 121 debit cards 47, 59, 61 final response letter 34, 78 28, 31, 95, 117, 119, 120 claims-management debt adjusting 46 financial hardship companies “auto renewal” 50 debt collecting 43, 46, 62 12, 29, 58, 60, 64, 84, 148 14, 24, 30, 37, 39, 40, awareness (of the 51, 52, 61, 70, 72, 81, debt counselling 46 Financial Conduct Authority ombudsman) (FCA) 142, 146, 148 debt management 63 6, 13, 86, 92, 94, 97, 6, 14, 52, 62, 88, 135, 142 commercial insurance 47, 49 default charges 61 98, 106, 114-118 FIN-NET 144 complaints data demographics flooding 14, 54 B 11, 78, 134, 144 92, 95, 96, 102, 104, Banking Standards Review complaints-handling rules 110, 112 food banks 146 143 26, 34, 98, 142 Department for Business, foreign currency 47 banks complaints prevention Innovation and Skills (BIS) fraud 50, 59 145 6, 13, 38, 58, 59, 64, 84, 13, 27, 50, 54, 143, 148 freedom of information 145 132-134, 136, 143, 148 derivatives 48, 68 consumer credit friendly societies 136 bereavement 85, 108 13, 14, 43, 46, 57, 62, 76, different needs 32, 106-108 “frivolous and vexatious” 81 79, 83, 103, 113, 114, 116, board (of the ombudsman) direct debit 46 FSAVCs 46 77, 86-88, 105, 117, 145, 132-135, 140, 142 disability 163-165 consumer groups FSCS (Financial Services 85, 106, 107, 109, 117, 121 Compensation Scheme) 52 Boorman, Tony 8, 166, 167 12, 29, 30, 34, 105, disputed transactions 59, 61 146, 147 funding British Standards Institute distress and inconvenience 16, 17, 88, 89, 137, 140 106 consumer helpline (compensation) 20-24, 26-28, 30, 31, 34, Future Foundation 7, 145 budget (of the ombudsman) 94, 101, 123 79, 81, 85 88, 89 consumer leaflet 34 diversity and inclusion G buildings insurance 29, 32, 76, 85, 92, 105, contents insurance gender 76, 95, 98, 118, 126 43, 47, 49, 54, 78 106, 115, 117, 118, 148 43, 47, 49, 54, 78 guaranteed asset protection building societies 132-134 continuous payment authority (“gap insurance”) 48, 49 business banking 38, 46 59, 62 guaranteed income bonds business protection Court of Appeal 70 47, 68 38, 48, 49 credit broking 46
170 annual review 2013/2014 Financial Ombudsman Service index index H L N health insurance 56, 78 languages 32-34, 111 newspapers 99, 100 hearings 77 learning difficulties “non-disclosure” 50, 53, 55 hire purchase 43, 46, 57, 62 106, 107, 109 O holiday clubs 61 leasing 46 Ofcom 21 home credit 46 legal expenses insurance 48, 49 Office of Fair Trading (OFT) home emergency cover 14, 62, 135, 142 27, 47, 49, 50 Legal Ombudsman 14, 40 levy 88-90, 137 older consumers “horizon scanning” 16, 87 23, 24, 92-94, 114-116, 127 loans household insurance Ombudsman Association 144 27, 54, 103, 116, 140 27, 35, 43, 46, 47, 57, 63, 64, 79, 84, 93, 103, 105, ombudsman decisions I 113, 114, 116, 148 11, 14, 70, 75-77, 94, 115, 146 impartiality loss adjuster 54 29, 79, 105, 112, ombudsman panel 121-123, 137 M 74, 75, 77, 85, 117, 167, 168 income and expenditure 90 maximum compensation 70, 80 ombudsman news income draw-down 46, 68 medical insurance 56 14, 24, 50, 116, 138 income protection 47, 49 Mencap 106, 109 online banking 66 independent assessor 87 mental health outcome of complaints independent financial 56, 106, 107, 109 78, 79, 95, 102, 105, 113, advisers (IFAs) 124, 125, 134 “micro-enterprises” 38 132-134 outreach industry panel Ministry of Justice 6, 12, 29, 92, 93, 97, 105, 140, 143, 146 14, 40, 52, 142 116, 121, 139, 140, 146 innovation 88 mobile apps 7 P insight mobile phone insurance 10, 13, 14, 55, 117, 138, 27, 48-50, 58 “packaged” accounts 142, 143, 146 money transfer 47 16, 24, 35, 46, 58, 78, 85 insurance intermediaries Montagu, Sir Nicholas Parkinson’s 85, 106 132-134 4, 164 payday lending interest-only mortgages 60 mortgages 6, 24, 35, 46, 62, 83, 84, 142 interest-rate hedging products 27, 39, 43, 46, 57, 60, 76, payment plan 29 38, 48, 64, 134 79, 83, 84, 133, 134, 148 payment protection internet mortgage endowments insurance (PPI) 23, 26, 30, 88, 116, 127 27, 36, 43, 47, 68, 69, 6, 10, 15, 22-24, 27, 78, 79 35-40, 42, 43, 45, 46, 49, investment-linked products 51, 52, 56, 75, 76, 78, 47, 71, 79, 115, 116, mortgage intermediaries 60, 132-134 81-83, 87-89, 92, 93, 95, 133, 134 102, 110, 113, 114, 116, ISAs (individual savings motor finance 63 123, 132-134, 139, 140 accounts) 47, 68 motor insurance pensions 27, 43, 46, 49, 53, 78, 83, 43, 45, 46, 68, 70, 71, K 93, 103, 114, 116 76, 79, 83, 93, 94, 103, knowledge 15, 85 MPs and parliamentarians 115, 116, 133 86, 115, 143, 144, 146 personal accident insurance 48, 49
170 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 171 index
personal guarantees 64 smaller businesses U 13, 37, 38, 51, 64, pet and livestock insurance UK Payments Council 66 14, 48, 49 138-140, 146 unemployment 105, 108 phone tariffs 21 social media 13, 26, 88, 101, 115 unit cost (of the ombudsman) point-of-sale loans 46, 57 17, 88, 89 Society of Lloyd’s 133 portfolio management unit trusts 47, 68 14, 16, 47, 68, 72, 79 socio-economic groups 12, 28, 60, 98, 102-104, 118 unit-linked bonds 43, 47, 68 porting mortgages 60 spread-betting 48, 68 unregulated collective powers of attorney 66, 67 investment schemes (UCIS) SSASs (small self- 71, 72 pre-existing medical administered schemes) conditions 55 46, 68 uphold rates 78, 79, 94, 95, 102, 105, private medical insurance stakeholder engagement 110, 113, 121, 134 47, 49, 56 10, 138, 142, 146 Q standing orders 46 V quality and consistency stockbroking value for money 16, 17, 137 48, 68, 72, 79, 132, 133 85-87, 122, 123, 137 videos 28, 51, 85, 101, 115 store cards 46 vulnerable consumers R storm damage 14, 54 56, 106 ratings by customers “structured” products 47, 68 86, 122, 123, 137, 138, 148 W suitability 72 regional data warranties 27, 48, 49, 63 96, 97, 101, 118, 128, 140 Sunday Times Best Companies 7, 15, 117 website (of the ombudsman) repossession 60 14, 24-26, 50-53, 72, 77, Retail Distribution Review T 86-88, 105, 111, 126-129, 138, 145 (RDR) 72 technical advice desk “reviewable” policies 70 14, 101, 138, 139, 148 Which? 116 roadside assistance 48, 49 term assurance whole-of-life insurance 43, 47, 49, 70 43, 47, 68, 70, 79 S Text Relay 29, 32 “with-profits” bonds safe custody (banking) 47 43, 47, 68 time limits 26, 69 Samaritans 106 word of mouth timeliness (of our casework) 30, 98, 122, 123, 125, 129 savings accounts 16, 82, 83, 122, 123, 137 43, 47, 57, 65, 79, 103, 116 workforce (of the ombudsman) timeshares 61 7, 15, 85, 110, 117 savings endowments tracker mortgages 60 43, 47, 68, 79 trade associations Y scams 59 38, 121, 138-140, 146 younger consumers section 75 (consumer credit) Trading Standards 29, 93, 94, 98, 113-115, 118 61, 63 30, 37, 115, 121 SERPs 46, 68, 134 training and development Shaw Trust 34 15, 85, 106 sign language 28, 32, 108 transparency 145 SIPPs (self-invested personal travel insurance pensions) 46, 68, 71 27, 43, 47, 49, 55, 78 our services for businesses and consumer-advice agencies and consumer-advice businesses for our services trust 11, 12, 18, 121 Twitter 13, 88, 101, 114, 115
172 annual review 2013/2014 Financial Ombudsman Service index
contact our technical advice desk for: how we can help an informal steer on how the ombudsman might view particular complaints help finding the information you need about the ombudsman service information about how you listened to me the ombudsman service works. 020 7964 1400
and cared about what [email protected] I had to say
you got to grips
our outreach team can: with things and used provide training for people working with financial complaints. common sense organise and speak at seminars, workshops and conferences take part in events and exhibitions 020 7964 1400 [email protected]
you gave me clear our website www.financial-ombudsman.org.uk and honest answers and let gives you online access to: news and frequently-asked questions (FAQs) me know where I stood help for consumers and technical guidance for businesses publications, factsheets and ombudsman news – our regular newsletter with case studies and commentary. our services for businesses and consumer-advice agencies and consumer-advice businesses for our services
172 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 173
174
what matters to us annual and informally. fairly, reasonably, quickly services businesses – consumers andfinancial disputes between to resolve individual public body. Ourjob is law as anindependent Service was set upby The Financial Ombudsman review 2013/2014 we say we’ll do we’ll say we we dowhat knowledge and build everyone’s we’re inquisitive
to us is that: of ourwork. What matters our values inall areas to us –andstanding by by knowing what matters do what we are here for We believe we can best ●● ●● ●● ●● we’re inquisitive andbuild everyone’s knowledge we dowhat we say we’ll do we treat ourcustomers well andrespect theirneeds we dotheright thing right thing we dothe Financ ial Ombudsmanial Service ●● delivering a trusted, fair and easy-to-use service – for everyone
●● putting knowledge and expertise at the heart of everything we do
●● running a “lean” and efficient organisation
●● sharing our experience and insight, to help prevent future problems
●● being flexible, reliable and effective We want to provide our customers – businesses and consumers alike – with a first-rate service. And we are constantly developing and improving what we do and how we do it. To help us in this, we are committed to:
delivering a trusted, fair and easy-to-use service putting knowledge and expertise at the heart of everything we do
operating an efficient infrastructure
sharing our insight and experience – to help build confidence
being flexible, reliable and effective
174 annual review 2013/2014 Financial Ombudsman Service Financial Ombudsman Service annual review 2013/2014 175 © Financial Ombudsman Service Limited, May 2014 Produced by the communications team at the Financial Ombudsman Service (809/20.05.14).
Photography by Margie Hetherington at the Financial Ombudsman Service.
This annual review is printed on Claro Silk, a paper comprising fibres sourced from well-managed sustainable forests. The paper’s manufacturing process is chlorine-free. 176 annual review 2013/2014 Financial Ombudsman Service how to contact us
■■ phone 0300 123 9 123 0800 023 4 567 switchboard 020 7964 1000 from outside the UK +44 20 7964 1000
■■ write or visit Financial Ombudsman Service Exchange Tower London E14 9GE
■■ email [email protected]
■■ online
financial-ombudsman.org.uk
Just let us know if you need information in a different language or format (eg Braille or large print).