Bradford & Bingley forced to back down

Bradford & Bingley has had no option but to reverse its decision concerning refusal to work with third party endowment complaint handlers.

This summer Bradford & Bingley sent letter to endowment complaint handlers inform them that from August 1 it "will not enter into any further dealings with them in respect of complaints". The company declared it intended to correspond directly with clients and show them how to complain on their own behalf for free.

The letters angered complaint handlers, who felt the B & B were removing client's freedom of choice as to how they wished to appeal. Many believed the company was in breach of Financial Services Authority guidelines. Solicitors threatened legal action unless the B&B backed down from its pronouncement.

The FSA, however, has supported the view that clients indeed have a right to employ third parties if desired. Its guidance clearly states that good complaints-handling practice involves "both accepting and handling complaints via third parties and corresponding with such third parties as if they were the consumer".

Policyholders have been contacted by the B&B and received reworded letters to offer them the choice of dealing with a third party. In response a spokesperson for the B&B announced: "Following discussions with the FSA we decided to revise our initial letter to ensure we comply with the regulator's new guidelines."

Endowment complaint handlers are satisfied with the decision by the FSA declaring that endowment mis-selling claimants now have that all important choice to use the services of an expert as well as following up a complaint themselves.

Oct 5, 2005
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