The FSA are inviting comments on the "Final Rules" by 31st August 2011 on CP11/10 : Consumer Complaints: The Ombudsman Award Limit and changes to the complaint handling rules.
From 1st September 2011 Firms will be required to identify a senior individual within the Firm responsible for complaints handling. Firms are also expected to take into consideration the findings of FOS and undertake root cause analysis. Further guidance is to be published by the FSA.
FOS have published some useful guidance notes for Firms and these may be found at
http://www.financial-ombudsman.org.uk/faq/index.htm
From 1st January 2012 the maximum FOS award limit will increase from £100,000 to £150,000. This higher figure will then apply to any eligible complaint case referred to FOS after this date regardless of when the cause for the complaint took place.
From 1st July 2012 the two stage approach to dealing with complaints will be abolished. The FSA expects Firms to deal with complaints more promptly and accepts that there may be a 5 - 30% increase in the numbers of complainants that take the matter to FOS. Firms will still be expected to issue a "final response" letter within 8 weeks.
The FSA will also be issuing a joint communication with the Claims Management Regulator, FOS and FSCS concerning Claims Management Companies aka Ambulance Chasers. The communication will make it clear to Consumers that Claims Management Companies are permitted to charge a fee for handling the referral of a complaint to the Ombudsman service and the issues a consumer should consider when choosing to use a CMC.
The Paper also makes references to changes to the definition of "eligible complainant" and in particular the scenario where an individual has been subject to identity theft and is being pursued by debt recovery teams on behalf of Regulated businesses.
