The Financial Ombudsman Service (FOS) has warned of the dangers of specialist claim firms generating unjustified complaints. The FOS believes that these firms could encourage an inclination by consumers to demand compensation for every perceived loss, overlooking the fact that there are always risks.
In a recent speech, the Financial Ombudsman Service criticised the growing reliance on claim specialists and blamed it in part on poor complaint management from financial firms, saying that specialists were often unnecessary and that consumers using these firms fare no better than those who take their complaints directly to the ombudsman.
Firms were also called on to incorporate the Financial Services Authority's 'Treating Customers Fairly' principles in their complaints handling procedures, which would reduce the demand for complaint management firms.
Our view
If a complaint is genuinely a valid one, it should be made and then dealt with. The problem is when you have television advertisements from "professional" encouragaing complaints when perhaps there should be no complaint.