Financial Ombudsman – your rights

Using the ombudsman is a very powerful technique. It's cheaper and safer than trying to get a resolution via the courts. More importantly, unlike the courts, which have to rely on whether the company has broken any law, the ombudsman service follows the regulator's 'treating customers fairly' rules. This means it can rule against companies EVEN if they're acting within the law, as this isn't the only thing it takes into consideration.

The three things it'd look at are:

• The law of the land. The primary source is the law. If companies' actions break the law, then it's clear-cut.
  
• Regulators' rules and guidance. The rules of regulators, including the Financial Conduct Authority (FCA), also play a key part. If the FCA has indicated how it wants firms to behave and a firm breaks that, it can be deemed unfair.
  
• Good industry practice. This is the most interesting one, as it allows the ombudsman to define what good practice is.
  

In most cases, it means the ombudsman will look at any trade bodies' standards, such as the Lending Code. But it can also look at what's seen as common good practice and what would be reasonable in the circumstances of the case. If a particular company goes against that, it can deem its actions unfair and put things right for you.

Its range is huge. It doesn't just cover regulated financial activity, but how companies operate in general, to ensure you're being treated fairly.

If you're not sure your complaint is covered, or you just want to find out how to get started with your complaint, it's worth a call to the ombudsman - call 0800 0234 567 or 0300 123 9 123 from a mobile. The worst thing that can happen is that the ombudsman tells you it can't adjudicate.

Here are some typical areas the ombudsman deals with:

• Bank accounts. Historically, the big one has been complaints about bank charges, but that is not a big thing now as many banks have stopped applying charges. However, complaints about packaged accounts keep flooding in.
  
  
• Credit cards. The main issue's unfair credit card charges. But the ombudsman can also deal with any inappropriate behaviour, such as an unexplained increase in interest rate, disputed transactions, or not paying Section 75 claims.
  
  
• Debt collection and irresponsible lending. The ombudsman can look at complaints about debt collection companies as well as the lending policies of anyone that holds a consumer credit licence, including payday lenders.
  
  For example, if you feel a lender is harassing you or not treating you properly according to the FCA Consumer Credit handbook, you can complain. The ombudsman will need to see that you've tried to come to an arrangement with the lender but it'll investigate if you think you've been treated unfairly. Also see the Debt Problems guide for info on how to sort out debts.
  
  
• Payment protection insurance (PPI) and other insurance. A big category of complaints used to be related to the dire selling of PPI. Car, home, travel, and pet policies, roadside assistance, income protection, critical illness and private medical insurance are all also under the ombudsman's remit. Complaints can be about rejected, delayed and unpaid claims, non-disclosure of information and more.
  
  When a firm sells you an insurance product, since April 2013 the onus has been on the insurer to ask you what it needs to know so it can figure out whether the policy's suitable for you (before then, you were expected to volunteer this information yourself).
  
  So, if the insurer rejects your complaint, and it didn't ask you the vital questions that would determine if you were eligible to claim, you can take it to the ombudsman as a mis-selling claim. 
  
  
• Investments. The ombudsman doesn't deal with complaints that are solely about the way an investment has performed. But it can help with many areas to do with with-profits or whole-of-life policies, unit-linked bonds, savings endowments and stockbrokers. It also covers where people are told they're getting low-risk products, but are actually sold risky deals.
  
  
• Mortgages and loans. This covers a vast range of issues, not just with lenders, but also with mortgage brokers. It includes the way lenders handle mortgage arrears problems, or whether a mortgage or loan was affordable when it was first taken out.
  
  
• Payday loans. Did you get a payday loan that you couldn't afford to repay as the lender didn't check your finances properly, or kept trying to sell you it again and again? If so, you may be able to reclaim £100s or even £1,000s - the ombudsman can help. 
  
  
• Pensions and annuities. Complaints can be about the suitability of a pension plan or administrative matters such as delays, though if you have administrative problems (involving an employer or trustees, for example), you should go to the Pensions Advisory Service first.
  
  
• Savings. The ombudsman can look at ISA applications that aren't processed correctly or on time, what happens to "rollover" savings bonds when they end, or other administrative errors.

Vulnerable customer? If so, you'll get priority

Though the ombudsman can take several months to resolve some disputes, it does try to resolve complaints from vulnerable customers as a matter of priority.

You might have poor health, had an unexpected life event, or caring responsibilities. 

If you believe your complaint is urgent and you have a vulnerability, then let the ombudsman know this when you escalate your complaint to it – as this may speed the arbitration process along. 

The Financial Ombudsman Service's decision is usually made by an assigned case worker. If you disagree with the result you can ask for a formal decision to be made by one of the actual ombudsmen at the service. This usually takes several months as it involves a detailed investigation into your case.