Don't be fobbed off --- financial watchdog tells consumers
20/09/1999
New research shows nearly one in four people feel they have been badly treated by a financial institution, but they often don''t know how to complain and frequently give up too easily.
According to the financial regulator, the Financial Services Authority (the FSA), people should not allow themselves to be fobbed off, but should follow up their complaints.
To help consumers, the FSA today launched its first guide to making a complaint. It contains tips for effective complaints. It shows how to write a firm but polite letter to a bank, insurance company or other financial company, how to follow up the complaint and who to go to if no agreement can be reached.
Christine Farnish, Director of Consumer Relations at the FSA said:
"People are often reluctant to complain in this country. But we shouldn''t be shy, and we need to complain more effectively. Don''t give up at the first attempt. And remember firms also need feedback from consumers, otherwise they won''t know what''s going wrong and how to put it right."
Research commissioned by the FSA shows around one in four people have something to complain about. The main complaints are about overcharging, mistakes on accounts, and poor service or rude staff.
Even after they make a complaint many people remain aggrieved. Over four out of ten are unhappy about the way their complaint is handled. But nine out of ten of them give up and don''t take the matter any further, for example to one of the financial services Ombudsmen.
In the case of young people aged 16 -24, the research found no-one who pursued their complaint further. This may have something to do with poor levels of financial education.
The FSA is currently reviewing arrangements on the handling of complaints by financial services firms and is also setting up a single Financial Services Ombudsman to replace eight existing schemes.
Christine Farnish said:
"We will be consulting on how firms can improve their handling of complaints later this Autumn. We are anxious to ensure that the financial services sector sets a high standard in this area. The new Financial Services Ombudsman will provide a quick and accessible ''one stop shop'' which should be available at the end of next year."
Regional/gender results: In Yorkshire, complaints are much less likely to be settled happily than anywhere else. Around half of those who make complaints in the region said they were very dissatisfied with the response and only 6% of complainants took the matter further.
In London and the South East, people make more complaints and have more problems with financial institutions - particularly about rude staff and poor service - than anywhere else in England. Half of these complainants were not satisfied with the response they got but nine out of ten took the matter no further.
Scottish Consumers have more problems with financial institutions than anywhere else in Britain and are among the biggest complainers. Most complaints were about overcharging, mistakes, poor service or rude staff.
Women are more likely to complain about rude staff or poor service than men but knowledge of the financial ombudsman schemes is much lower among women than men: 37% have never heard of the term "ombudsman" and of those who had, 78% could not name one.
Notes for editors
The FSA (Financial Services Authority) is an independent body set up by government to regulate financial services and protect consumers.
The "FSA guide to making a complaint" will be widely available from the free leafletline on 0800-917-3311 and through libraries, advice centres and Citizens Advice Bureaux. It is also available on the FSA website http://www.fsa.gov.uk/consumers/complain.htm.
It is important to emphasise that people must always go back to the firm to give them a chance to put things right first, and have gone through the firms own complaints procedure before going to the independent complaints scheme or ombudsman. If they are unsure how to proceed after reading the booklet the FSA helpline on 0845-606-1234 (local rates) can advise them.
The research was carried out by NOP Solutions for the FSA. In total 989 interviews were carried out between June 25th and June 27th 1999 with adults aged 16 and over.
The "FSA guide to making a complaint" has received a Clear English Standard award from the Plain Language Commission and the Quality Mark from the Money Management Council.
For a copy of the leaflet please contact the FSA Press office on 020 7066 3232. An electronic version of the sample letter of complaint and a checklist graphic suitable for printing are available as tiffs on the PA wire in the PR Newswire folder.
The consultative paper on the new Financial Services Ombudsman scheme and complaints handling by firms is scheduled for publication at the end of November.