Mortgage endowment complaints monthly returns - Frequently asked questions
This information is strictly about mortgage endowment complaint (MEC) data reporting. Certain definitions or phrases could be misinterpreted if used for purposes other than MEC data reporting.
Here are some of the most frequent questions we get about MEC data reporting with the answers we have given. We hope this is helpful in ensuring that the monthly MEC reports are completed correctly.
Frequently asked questions
What should my firm bear in mind when assessing whether a case should be recorded as upheld or rejected by the Financial Ombudsman Service (FOS) in the monthly data returns?
Firms should consider whether, as a result of a complainant referring their case to FOS, the firm's position as set out in the final decision letter has changed. If your firm's position has changed significantly as a result of FOS intervention the case should be recorded as a 'FOS uphold' on the returns.
My firm has time-barred a mortgage endowment complaint and the FOS has agreed we time-barred it correctly. Where do I record this case?
Cases the FOS has ruled as correctly time-barred by the firm should not be entered as FOS rejections. You must record these cases as 'other resolution by FOS' (box 11 on the monthly returns).
My firm has time-barred a mortgage endowment complaint, the complainant referred the case to FOS and the FOS has not agreed we time-barred correctly. Where do I record this case?
Where the FOS has deemed that the case has not been time-barred correctly they will go on to look at the merits of the complaint and record the outcome as an uphold or reject. You should record the case in accordance with the FOS decision on the merits of the case.
At what stage can we record a complaint as closed (box three) on the data return?
A complaint can only be classed as closed when it satisfies the conditions of our rule DISP 1.5.7. In most cases, firms do this by sending a final response letter. A final response letter that upholds the complaint and offers redress must contain a specific redress calculation and redress figure that the complainant can accept or reject. If it does not, then the complaint remains open for reporting purposes.
If you tell the customer that you have upheld their complaint, but have not included a monetary amount, you must not report the case as closed on the monthly reports.
Our firm re-reviewed past mortgage endowment complaints that had been previously concluded. Where should we enter these re-opened cases?
If firms review past complaint decisions, irrespective of why they decide to do so, we would not expect them to enter these 're-reviewed cases' on the data return. Doing this would overstate complaint volumes and would prevent fair comparisons between firms.
Firms may, where they deem necessary, include details of any re-reviewed cases in the text box on the returns.
Where any of these cases are subsequently referred to FOS by the complainant they should then be included in the returns in box 13.
How do firms operating a two-stage process (as per DISP 1.4.9) reflect rejected cases on their returns?
If you send a non-final response letter rejecting the complaint, you can enter it into box 5b, rather than entering it as closed. Do not use this box for any other purpose – e.g. for complaints awaiting other types of customer response (such as mortgage endowment questionnaires).
If the complainant does not reply to the non-final response letter within eight weeks, the complainant can be considered as closed for reporting purposes and you can put it in box three. At that stage the complaint should also be accounted for in box 7 - complaint closed through other (non final) response.
As a product provider, should we include complaints made for all policies provided by our firm, or just those for which our firm has responsibility? (This question relates to product providers only).
You should only include complaints for which your firm has responsibility. For example, product providers should not include complaints made where the sale was conducted through a third party such as an IFA or lender adviser. These cases will be included in the relevant selling agent's data returns.
We have received an MEC and, after preliminary investigations, have established that we do not have liability for the sale of the policy. How should we record this type of case?
We still want to see each complaint recorded. In the month you receive it, enter the complaint in box two (Complaints received). If the case has not been dealt with by the time you report it to us in the relevant monthly data return, you should also record it in box five (complaints not closed at the end of the month).
When the complaint has been dealt with (this could be before it is reported to us in box two), you must record in box four (complaints withdrawn). It does not need to be accounted for anywhere else.
Does the compensation figure required in box 14 include the amount we pay out when the FOS upholds a case?
Yes. Box 14 should include the full amount of redress paid out during the month. This includes all cases that your firm paid redress on and also cases which were referred to the FOS and that it subsequently upheld and the redress paid in the period.
Should you have any further questions please email them to the Mortgage Endowment Inbox at in the first instance and one of the team will respond to your query.
