Complaint handlers get boost from FSA

A financial watchdog has acted to appease the argument between endowment complaint handlers and endowment providers.

The Financial Services Authority has informed endowment providers that they must work with third party complaint handlers if a customer has asked for this.

It stated that by declining to deal with the third parties, endowment firms could be forcing customers to breach their contracts with the complaint handlers.

The disagreement began after Bradford & Bingley refused to work with third party complaint firms, declaring that customers deal with the bank directly.

Despite reassuring the FSA that it would act with third parties if the customer wished; it still sent letters to complaint handlers informing it would only communicate with customers.

The Prudential and Abbey have also attempted to restrict their dealings with third parties by refusing to make compensation payments through them.

The FSA said: 'We understand that good practice in this area would mean both accepting and handling complaints via third parties, and corresponding with such third parties as if they were the consumer, although this does not preclude firms from sending copies of correspondence to the consumer.'

The FSA added that it felt making compensation payments direct to the consumer via a complaint handler were 'adequate' solutions.

A spokesperson for an endowment advice organisation stated: 'The endowment policy holders that created this debacle in the first place, have been witnessed deliberately deterring claimants time and time again, and then tried to prevent the complainants from having any support in these matters.'

Sep 2, 2005
Email this article


Previous Page