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Q&A: how to complain about your bank
If you're unhappy with your bank or another financial services provider, check out our quick guide to filing a formal complaint.
by Victoria Bischoff on Feb 07, 2012 at 14:05
Follow @VBischoff
If you had an axe to grind with your bank or another financial services provider, would you know how to go about filing a formal complaint?
If not, here’s how you do it.
Who should I complain to first?
Your first port of call should be the company itself.
It’s not in a company’s interest to have unhappy customers, so it's important that you give the firm a chance to put things right first.
It’s a good idea to put your complaint in writing, and ensure you keep copies of all correspondence between you and the company. Be calm and polite, write the facts out clearly, include the relevant paperwork and say what you want the company to do about your complaint. You should also warn them you are prepared to take the matter further if necessary.
If I am still unhappy who should I go to next?
If you’re not satisfied with the company’s response, you should then go to the Financial Ombudsman Service (FOS).
You will need to fill in a complaint form, explaining exactly what your complaint is about. You can download a form from the FOS website. Once you have filled it in you must send the form back to the FOS by post, with a handwritten signature. If you need help filling in the form you can call the FOS for assistance.
What is the FOS?
The Financial Ombudsman Service is an independent official body set up by parliament to resolve disputes between financial companies in the UK and their customers.
Regulation states companies must ‘treat customers fairly’ and if they don’t the FOS has the legal power to adjudicate on individual or small company complaints.
The service is completely free of charge, and like a judge in a court the FOS will remain completely impartial.
What type of complaints does the FOS deal with?
The FOS deals with complaints about a whole host of financial matters, ranging from banking and insurance to mortgages, pensions and investments.
One of the most common complaints dealt with by the FOS in recent years has been from consumers who have been hit with unfair bank charges. Other complaints include the mis-selling of payment protection insurance (PPI) and unfair credit card charges.
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9 comments so far. Why not have your say?
The ssinnic
Feb 07, 2012 at 15:28
Who wrote this trash?
It's Dickens' birthday and I'm sure he's never written fairy stories.
What does completely impartial actually mean? Changing rules to suit their views, or timescales, or interpretations?
To write such rubbish on Dickens' birthday is sacriledge!!! Must be hard up for copy!!
report thisVictoria Bischoff (Citywire)
Feb 07, 2012 at 15:50
Hi there Ssinnic, sorry you didn't find the article useful.
Completely impartial means the FOS does not have a vested interest in ruling in favour of either party and will weigh up the case in a completely unbiased manner.
Hope this helps,
Victoria (the author)
report thisRedundant (Old Timer?)
Feb 07, 2012 at 20:15
Victoria,
A very helpful article for anyone thinking of making a complaint. I look forward to the follow up when the Governments new "twin Peaks" Regulators come into being.
report thisAndrew Maher
Feb 07, 2012 at 20:44
Victoria, there’s an error in your article.
Although the headline is "how to complain about your bank" you do say it covers other financial services providers. So it's not true when you say “The FOS, however, can only investigate complaints about companies regulated by the Financial Services Authority”.
FOS also covers complaints against firms that have a licence from the Office of Fair Trading (OFT). Firms must have an OFT licence if they’re doing consumer credit business or they're dealing with debt resulting from consumer credit. This includes products such as unsecured personal loans, in-store finance and hire purchase to list but a few. So, some examples of firms you can complain to the FOS about are payday lenders, debt collectors and debt management firms.
FOS has a helpful page on complaints and the businesses they cover
http://www.financial-ombudsman.org.uk/faq/answers/complaints_a2.html
They also have useful case studies on debt-related complaints
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/75/75-consumer-credit.html
You may want to revise your Q&A or do a separate Q&A on how the Ombudsman can help with non-banking complaints.
report thisVictoria Bischoff (Citywire)
Feb 08, 2012 at 09:00
Hi there Andrew - you're completely right and I didn't make this clear so have amended the article to include firms with an OFT license.
Thanks for highlighting this,
Victoria
report thisderek farman
Feb 08, 2012 at 10:41
Victoria ....many thanks . I have a complaint brewing about a building society , which, when I received my interest statement, had reduced their rate to .05% without notification, and the interest was negligable.
I am very on the ball about checking when bonus rates are due to run out. When rates reduce, I always switch funds away. But this was out of the blue.
I have written to the chief executive and warned him that I would be taking the matter further. I believe their action to be totally unethical. So far no response.
Your article provides good guidance .
report thisNick A.
Feb 08, 2012 at 14:18
The claim that the FOS is impartial is surprising. The FOS is financed by the financial companies. The very companies the clients are complaining about. Consequently, the end result can be well predicted. It is a total waste of time-it is just a game. Of course the financial companies knows that. Most of the inept often appalling financial companies urge the complaining clients to go to the Ombudsman so that it will leave them with less work to do, thereby they target the paid FOS to take the strain and after considerable waste of time they deliver their expected result. The integrity and the credibility of this sham should be examined and modified accordingly.
report thisAndrew Maher
Feb 08, 2012 at 17:24
@Nick A. Although firms finance the FOS, FOS is independent from firms. It’s independent of the FSA and OFT too. Firms must comply with a FOS final decision (if the complainant accepts decision). If firm doesn't comply with the FOS, FOS reports them to the regulator. So the firm risks the regulator taking action against them depending on severity of their misconduct.
If the FOS was in the pocket of firms you’d expect most complaints to be decided in favour of the firm. But this is not true. High level data about complaints is made public and this includes the percentage of complaints that are upheld. The current data shows that 50% of cases are found in favour of the complainant. See the 8th bullet point under ‘Highlights for 2011 H1’ http://www.fsa.gov.uk/pages/library/other_publications/commentary/aggregate_com/index.shtml.
report thiscolin wilson
Feb 11, 2012 at 21:56
Some of the financial agony aunts in the national newspapers seem to have a good record of sorting out problems with the banks.
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