Financial Services Ombudsman: "Some companies using us as their complaints service"

[Brendan Burgess]

Bill Prasifka the Financial Services did a very interesting interview with Emma McNamara on the Business News on Radio 1 just now.

Our epxperience with the financial services companies varies greatly. There is a long spectrum.

Some companies deal with the complaints themselves . When things reach a final stage with us, they are never upheld. Their response to their customers is comprehensive and complete.

There are other providers who have in the past used us as their complaints service. A complaint is made and there is no further engagement with the customer. Not only do we uphold a high percentage of these complaints but we uphold the same complaints over and over and over again.

We have been meeting with these outliers. We have been encouraging them, with the assistance of the Central Bank, to improve their performance. But if we could name them, that would give them a greater incentive to improve their performance. Other countries allow this, e.g. Australia, New Zealand and the UK.

 

[Bronte]

'Not only do we uphold a high percentage of these complaints but we uphold the same complaints over and over and over again. '

Well if that's the case what is the point of the financial services ombudsman. What you are saying is that ordinary people have the exact same issue with say one financial provider and the ombudsman is constently ruling in the customers favour but there is no directive to the financial provider to change their practice, no power of the ombudsman to enfoce it and no shame in the financial provider continuing the 'illegal' practice. Toothless in other words. And a lack of will on enforcing good financial practice on financial institutions in the interest of all customers. Basically the financial institutions can do what they like, will have done the numbers and know the percentage of customers who complain will be miniscule and ride rough shod over the system.

 

[Brendan Burgess]

Hi Bronte

It's not as bad as all that.

Firstly, the Ombudsman must operate within the legislation. He wants it changed. His predecessor wanted it changed. Hassle your TD to get it changed.

Secondly, where he sees a systematic problem, he refers it to the Financial Regulator. I suspect that the FR's directive to some banks (BoI & PTSB?) to restore people to tracker mortgages came from repeated complaints to the Ombudsman on the topic.

I thought that the FR had some powers to order a look back for other cases. He did this in the case of the Irish Nationwide. However, I think that the High Court may have limited his powers in this area. Again, worth hassling your TD on.