Numerous contingencies have been established to protect retail investors in the UK. The Financial Conduct Authority (FCA) exists to ensure that regulated financial organisations are operating to the highest of standards, providing services and products that meet their exacting specifications. Where a firm falls short of these expectations, customers may be entitled to make financial claims and seek restitution for monetary losses and emotional damages. There are two distinct organisations that handle retail financial claims in the UK; the Financial Ombudsman Service (FOS), and the Financial Services Compensation Scheme (FSCS):
- The FOS is the statutory financial claims mediator, operating with impartiality to resolve compensation disputes between a customer and a regulated service or product provider;
- The FSCS is a financial lifeboat that can provide compensation sums of up to £50,000 in instances where a firm has gone into default.
It is possible to navigate each of these instances independently, without a financial claims specialist. However, the process of seeing a claim to completion can be convoluted and challenging. In fact, recent data published by the FOS showed that financial complaints are more likely to fail than succeed.
Decreasing FOS Uphold Rates
The FOS’s annual review of the 2017 financial year found that just 23% of mortgage complaints resulted in successful financial claims. This figure was down 8% from the previous year. In the investments and pensions sector, just 28% of complaints were upheld by the FOS – despite an increase in self-invested personal pension (SIPP) complaints of 37% in a single year. These disappointingly low success rates highlight the difficulty of undertaking financial claims alone.
Throwing this information into sharp relief is the fact that an FOS review is typically the end-point of a lengthy process that potentially involves several stages of rejection. First a claimant must register a complaint directly with the firm responsible, conforming with their complaint procedures. This typically results in out-of-hand rejection, as it is in a firm’s financial interests to not pay compensation without a ruling from the FOS. Firms routinely use financial jargon to mystify claimants and dissuade them from escalating a complaint. This process can take several weeks to months, before a financial claim is eligible to go before the FOS.
The FOS have made it as simple as possible to complete their forms and register a financial claim. They will consider all your attached data and perform an impartial evaluation of the service or product that is under scrutiny. This can also take a while to resolve, and in most cases, will result in another rejection, since often individuals do not put forward the correct legal argument on which to base their claim. Cases can be reopened and escalated further, but this process can drag on for months with decreasing chances of success the further along the financial claim is taken.
Financial Claims with Money and Me Claims
Money and Me Claims is a specialist financial claims management company that was established to provide support for individuals seeking financial recompense for mis-sold products or services. We understand the complexities of the financial markets, with expertise in handling claims through the FOS and the FSCS alike. Since launching in 2009, we have recovered millions of pounds for our clients, with a success rate of above 90%.
If you would like any more information about making financial claims, please feel free to contact us. Alternatively, start your claim online directly.
Money & Me Claims are one of the longest serving financial claims company in the UK.