A Guide to Effectively Using the Ombudsman Services for Disputes

MIs-sold car finance contracts could be ultimately resolved with the help of the Financial Ombudsman Service (FOS). They offer an independent and free avenue for addressing finance-related complaints, including car finance claims. 

What you should keep in mind is that small missteps when filing a complaint could be detrimental to your claim. Understanding how the FOS operates is the key to getting things done right. After all, the process can be complicated. 

Keep reading to learn how the FOS works, who is eligible to use it, how to file complaints, and how it resolves disputes.

Who Can Use the Financial Ombudsman Service?

The FOS receives significant amounts of finance cases annually, including complaints about mis-sold car finance. It even reported a sudden surge in motor finance-related issues over the past years. 

The Financial Ombudsman Service is open to a wide range of users, including individuals, small businesses, and other organisations. It is in charge of any complaints related to financial products and services provided within the UK. 

If your issue involves a car finance agreement, you may qualify to file a complaint. Eligibility extends to individuals or joint customers who have received a final response from their finance provider but want to dispute the decision.

Consumers can file complaints, whether they are individuals or joint customers. Were you a personal guarantor or involved in a small business that took out motor finance? You qualify, too.

Steps for Filing a Complaint

Submitting a complaint to the FOS is pretty easy. Here is a step-by-step guide:

1. Try Resolving the Issue with the Company

Before reaching out to the FOS, you are required to contact your financial provider directly to discuss your concern. 

Provide adequate evidence and a detailed outline of the issue. You can also strengthen your case by suggesting the type of resolution you are looking for. Companies are required to issue a final response within eight weeks.

2. Obtain the Final Response Letter

The next step is to wait for the company’s response. Take note that a final response letter from the business is required to proceed. An unsatisfactory resolution is enough reason to file with the FOS.

If you do not receive one within eight weeks, you can also escalate your case to the FOS. 

3. Use the FOS Complaint Checker

Once you get that document, you can head over to the FOS website to use their complaint checker. This tool will guide you through the next steps. No need for legal representation, but feel free to ask friends and family for help if needed. 

4. Submit Your Complaint

A good thing about the service is that it does not involve a lengthy procedure. It is considered informal and straightforward, so much so that communications typically happen via phone, email, or mail. 

Once you get the green light from the tool, you start the process without paying a pound. 

Tip:

Preparation is key to improving your chances of a positive outcome with the FOS. You might want to organise all relevant documents, including agreements, correspondence, and payment responses. 

You should also thoroughly explain your complaint. Your document should have a description of the problem and a suggested solution. Make sure to promptly respond to any communication and requests by the FOS. 

How the FOS Handles Complaints

After receiving your complaint, the FOS reviews the issue based on what is fair and reasonable. The process is informal and is typically conducted via phone, email, or post.

You will be assigned a case handler who will provide an assessment. This assessment is shared with both you and the financial business. If both sides accept the offered solution, the case is considered resolved. 

However, disagreement from either party means that the case will be referred to an ombudsman for further evaluation. 

In some cases, the ombudsman may issue a provisional decision. This gives both sides a chance to respond before finalising a ruling. 

The good news is that the company is compelled to comply if the consumer agrees with the resolution. 

Some consumers receive car finance compensation for their cases. This aims to restore your position to what it would have been if the company acted correctly. Other remedies can include refunds, interest payments, or other forms of redress. Remember that the FOS has limits on the amount it can award.

Real-Life Cases of FOS Assistance

To give you a clearer picture of what type of solution you can expect from the FOS, you might be interested to hear about examples of the service’s remedy to debt collection issues and hire purchase problems. 

In one case study, a man’s father reported receiving constant calls from a debt collector. The FOS stepped in and ensured the debt collector worked with him to create a more manageable repayment plan. Ultimately, the service secured compensation for the stress caused by the harassment.

Another example is a woman who reports having difficulty exiting a hire purchase agreement for her car due to personal circumstances. 

The FOS found that the lender had failed to consider her situation fairly. This resulted in the service urging the firm to recommend a more favourable option that reduces the total amount she owed.

Conclusion

The Financial Ombudsman Service is a valuable avenue for those dealing with car finance claims. Its free and impartial approach ensures consumers can access fair treatment without further financial damage. 

Whether you’re facing issues with a car finance agreement or another financial product, the FOS offers a practical way to resolve conflicts effectively. Knowing your rights and understanding how to use the FOS service can help you achieve satisfactory outcomes.