1 independent external review by Lord Hunt of Wirral UK Financial Ombudsman Service David Thomas corporate director and principal ombudsman.

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independent external reviewby Lord Hunt of Wirral

UK Financial Ombudsman Service

David Thomascorporate director and principal ombudsman

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UK Insurance Ombudsman

established by insurers voluntarily in 1981

in partnership with consumer bodies

alternative to civil courts

but redress beyond the law

binding on provider, but not consumer

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characteristics

complain to provider first

free to consumer

flexible and informal processes

mediation or investigation and decision

specialist knowledge

encouraging complaint resolution / prevention

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other financial ombudsmen followed

banks

building societies (mutual mortgage banks)

investment product providers

investment intermediaries

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Financial Services Authority (the regulator)

Financial Ombudsman Service (resolves on unresolved disputes)

Financial Services Compensation Scheme

Financial Services and Markets Act 2000

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providers covered

services provided in or from the UK by all:

banks and building societies

other lenders (mortgages and consumer credit)

mortgage and loan intermediaries

credit unions and electronic money institutions

insurers and insurance intermediaries

investment providers and intermediaries

credit reference agencies and debt collectors

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complainants covered

individual

business (< €1.5 million turnover)

from UK and world-wide

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any complaint not resolved by close of the following business day

prompt written acknowledgement to consumer

within 8 weeks: ‘final response’ with details of ombudsman

what the rules require providers to do

keep consumer informed

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If complainant has not complained to provider

we:

send the provider details of the complaint, and remind it to issue a final response within 8 weeks

send the complainant a pre-populated complaint form, to complete and return it if the complaint is not resolved within 8 weeks

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totalenquiries (627,814)

enquiries converted to cases (94,392)

written enquiries (286,359)

phone enquiries (341, 455)

customer contact division

to casework

figures are for ALL financial products in year ended 31 March 2007

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casework division

final decision by ombudsman

early termination by adjudicator

case

mediation by adjudicator

non-binding decision by adjudicator

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early termination by adjudicator

for example: no reasonable prospect of success fair settlement on offer more suitable for court legitimate commercial judgment

[can ask for review by ombudsman]

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mediation by adjudicator

evaluative mediation

by agreement

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non-binding decision by adjudicator

(paper) investigation

legal power to compel evidence

non-binding decision

both sides can accept

either side can ask for the case to go to an ombudsman (<10% do)

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review by ombudsman (internal appeal)

request by either side additional evidence/arguments possible hearing (rare) final decision if consumer accepts, both sides bound otherwise, neither is bound

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basis of decision

law requires us to decide what is ‘fair and reasonable in the circumstances’

rules require us to take account of: - relevant law - regulators’ rules and guidance - industry codes - good industry practice

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redress

we can require the provider to:

pay compensation up to €150,000 *

pay interest

pay costs (rare) * we can make a non-binding recommendation for more

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alternatively, or additionally

we can direct the provider to takeappropriate action in relation to thecomplainant – for example:

put something right reconsider an application or claim apologise

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insurance cases: year to 31 March 2007

4,230 motor

3,734 life

1,951 buildings

1,832 loan protection

1,670 travel

1,238 contents

891 income protection

713 extended warranty

680 critical illness

520 commercial

445 legal expenses

388 medical

273 pets

202 breakdown

177 personal accident

77 caravan

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independent external reviewby Lord Hunt of Wirral

www.financial-ombudsman.org.uk

www.financial-ombudsman.org.uk/accessibility/polish/twoje_zazalenie_a_rzecznik_praw_obywatelskich.htm