FSA to Improve Complaints Handling Standards

Jun 14 2011

The FSA has announced a range of measures aimed at improving complaints handling standards.  The new rules apply to all products sold and all regulated business activities.

Alliance Consultancy and Training Solutions’ Group Compliance Manager, Lorraine Tromans, says “It is essential that motor retailers understand and implement these new requirements as well as checking to ensure that their current procedures are up to date.”

The FSA has made it clear that they will follow a zero tolerance approach towards non-compliance.

Some of the most important changes include:

From the 1st September retailers must identify a senior staff member to oversee complaints handling.  From that date all dealers must also be able to clearly show that they have a system in place for identifying problems that occur regularly or identifying shortcomings in their system.

Previous guidelines only compelled retailers to have such a system in place for PPI complaints – the new rules include all products.

Retailers are now also expected to heed previous decisions of the ombudsman.  Previous complaints from customers should also be reviewed to address possible systemic shortcomings.

From the 1st July next year the Financial Ombudsman Service will be able to make awards to a maximum of £150,000, compared to the current £100,000.

Finally, it was also announced that the FSA, the Financial Ombudsman Service, the Ministry of Justice and the Financial Services Compensation Scheme will soon make a joint statement on the actions of claims management companies.

Consumers who are about to buy another car and take up a car loan are advised to make themselves familiar with the new FSA rules.

Author - Louise Hutchinson

 

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