According to Endowment Justice, brokers, intermediaries and insurers are mis-leading clients or indeed being deliberately difficult when people have attempted to make a compensation claim for mis-selling.
They state that the information given about how to complain was often confusing and sometimes a very long process.
Our view
Whilst some would argue that the complaints procedure is designed to put people off, we believe that the structure is correct and professional. How else can you deal with a financial services complaint?
Getting a client to put it in writing and dealing with the complaint within strict timescales and then if they are not happy with the response offering a independent mediator ie arbitrator The Financial Services Ombudsman who makes an independent ruling that is binding on the financial firm but not on the client.
It is a sad state of affairs that insurers admit that well over 70% of insurance claims that they handle have an element of fraud in them. It is therefore, a healthy assumption to make that many of the financial services complaints made have an element of inaccuracy. Those that are genuine do generally receive a positive reponses and receive compensation. Although, we accept that there are many brokers that may not be as honest or forthright with their complaints procedure.