CCTA says ombudsman has “missed an opportunity”

It comes off the back of a consultation it conducted on the temporary changes to reporting the outcomes of proactively settled complaints. The 14-day consultation, which opened on 4 October, sought stakeholders’ views on how to help speed up the resolution of complaints.

One reservation highlighted by this process was the regulator’s approach to relaying proactive offers to customers. FOS’s original proposal envisaged that the regulator should present proactive offers from businesses “neutrally” to customers. A range of stakeholders were, however, concerned about this approach as it could inadvertently present a risk to fair and consistent outcomes for consumers.

Reflecting on this feedback, the regulator said it would review the “fairness and reasonableness” of any offer communicated through this process, and would also “make the necessary arrangements” to ensure that any proactive offer through this process would be reviewed by the FOS.

It also confirmed it would continue to progress cases in scope, but that it would allow businesses additional time to review cases where they identified in advance that they’re likely to make proactive offers.

Additionally, the regulator said it would work with individual businesses to identify vulnerable customers and establish time-sensitive deadlines for the prioritisation and review of their complaints.

The conclusions drawn by this consultation have, however, been seen by trade association the Consumer Credit Trade Association (CCTA) as a “missed opportunity” to deal with the backlog of complaints it faces.

It added: “At such an early stage, where the decision still rests with the customer, ask the lender to take one more look. The customer can accept an improved offer, with the comfort that if they have any concerns, they can carry on with the FOS investigation.

“This could have been the simplest of systems. However, this new process includes a check on the offer made by the lender, bringing with it delay as the FOS carries out a review.

“There will be a new administration system as we count these cases. There will also be the application of a £750 case fee each time, no matter what happens.

“From the engagement we have had with members, some lenders are surprised that the FOS seems to have rejected a simpler process. There is less surprise that the FOS are keen to continue charging a full case fee.”