Ombudsman

An Ombudsman is a referee who may be your answer if you've a complaint about a financial institution, having failed to resolve your issue with them.

If you're dissatisfied after buying an investment or insurance product or having taken out a loan or dealt with an estate agent, you should talk to the company itself.

If an approach fails to bring a satisfactory response immediately, you should write to the chief executive or the compliance department.

If all else fails, you should contact the relevant financial ombudsman. While they claim to be independent, these referees are often funded by the industry itself, leading the cynics to suggest that 'if the practitioners don't like the way the Ombudsman is criticising them, they can withdraw funding'.

Cases can only be accepted by an ombudsman when there's a 'deadlock' between the parties. The bad news is, even if the ombudsman agrees to take on your case, justice can be slow - taking up to a year or more for it to be resolved. The ombudsman can order a company to pay compensation and also rebate the customer for any losses.

You don't have to accept the ombudsman's recommendation, but if you do, the case will be closed and you won't be able to subsequently pursue the matter any further.

Last Updated: July 2007 © Moneyextra.com

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