Currently, complaints that are dealt with quickly do not require a letter to be sent to the customer meaning that if dissatisfied, the customer could have to wait up to eight weeks before being able to go to the Financial Ombudsman Service.
The FCA is now proposing to extend the period during which complaints can be resolved without the need for a formal letter from one business day to three. According to the FCA, giving firms up to three business days to deal with less complex complaints will help avoid unnecessary procedure and ensure that consumers have matters resolved faster.
In addition, complainants will be able to refer all cases to the ombudsman service immediately after receiving the firm’s response. Firms will also have to inform customers, in writing, that they are able to take their complaint to the ombudsman service if they are dissatisfied with the resolution.
Under the reforms, firms will also be required to report all complaints to the FCA, not just those where final response letters are issued. Firms will also have to analyse and report the causes and categories of complaints to allow comparison of their performance
The FCA plan to keep current time limits for referring complaints to the ombudsman service.
Following further changes to the rules on complaint handling, financial services firms will no longer be able to use premium rate telephone numbers for customers.
Christopher Woolard, director of policy, risk and research, said:
“Consumers want a simple way to complain that does not leave them out of pocket. And they want to be assured that their concerns will be dealt with fairly and quickly.
“These proposed reforms will further improve the system, making it less bureaucratic for firms, easier for consumers and will provide us with improved intelligence on complaints.”
