The Financial Ombudsman Service (FOS) has just published data confirming that the number of financial complaints received in the first half of 2024 rose by over 40%.
The bulk of the complaints continue to relate to the banking and credit sector, and half of these complaints were brought by professional representatives.
Increased complaints of de-banking
In relation to one specific complaint, ‘de-banking’, we are increasingly being approach by individuals who feel that they have been unfairly de-banked. This is an incredibly frustrating situation to be in.
We have previously outlined steps that individuals who feel that they have been unfairly de-banked can take. This includes making a formal complaint to the relevant bank accompanied by a Data Subject Access Request (DSAR).
However, if the relevant bank rejects this formal complaint, what are the next steps?
Lodging a complaint with the Financial Ombudsman Service
If you have been unsuccessful with the above steps, you can consider making a complaint with the FOS.
It is important to note that there are strict timeframes involved, and a FOS complaint must be lodged within six months of the final decision of your bank.
What is the Financial Ombudsman Service?
The FOS is an official body established by the UK Parliament to settle disputes between regulated financial companies and their customers. The FOS has legal power to adjudicate on individuals’ complaint. A complaint could arise in circumstances when an individual feels that a financial institution has de-banked them without a valid reason.
What is the process to lodge a complaint?
Once the relevant bank has issued its final decision on your complaint, and provided this decision was issued within the last six months, a complaint to the FOS can be made by way of filling out their online complaint form.
A FOS complaint can be bolstered by providing a detailed statement of complaint (essentially setting out the background to the complaint) accompanied by relevant evidence (including relevant correspondence and/or decisions).
A FOS complaint can also be strengthened by a thorough application of the specific circumstances of the case to the relevant criteria.
Will the FOS consider my complaint about being de-banked?
Yes. According to data published in a letter sent to the Treasury Committee, complaints to the FOS about account closures have risen by 44% in the past year and more complaints are being upheld.
NAVIGATING FINANCIAL INSTITUTION RELATED CHALLENGES
Adverse Information on Compliance Databases
We are also approached often by individuals who feel that incorrect and/or inaccurate personal stored in compliance databases is having an adverse effect on their relationship with financial institutions, and are facing subsequent issues, such as bank accounts closures and difficulties with opening a bank account.
We have written a series of blogs providing a general overview of the main functions of compliance databases such as World-Check and information on how to correct individuals’ data in such databases.
Bank Account closures or de-banking
We have previously written about how other issues that individuals may face, including account closures, are not limited to political figures in the UK, and affect many thousands of lawful individuals and businesses every year. These cases have exposed the difficult balance many financial institutions and their individual and business customers must navigate to gain and maintain access to basic banking services.
To assist those who have experienced bank account closures, Gherson’s Financial Crime team have outlined some helpful tips in the following blogs:
“Why has my bank account been closed?”
“Why has my business bank account been closed?”
“140,000 SMEs “de-banked” last year – why could I have been de-banked?”
Could a CIFAS Marker be affecting my ability to obtain financial services?
We are increasingly approached by individuals who have been adversely affected by a CIFAS marker and are seeking advice on how to remove it.
In some scenarios, the CIFAS marker may be wrongly added against an individual, which can have a detrimental effect on the individual.
In a previous blog we examined what a CIFAS marker is and how to attempt its removal.
HOW GHERSON CAN ASSIST
If you have any questions arising from this blog, please do not hesitate to contact us for advice; send us an email at enquiries@gherson.co.uk or, alternatively, follow us on X, Facebook, Instagram, or LinkedIn to stay-up-to-date.
The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.
©Gherson 2024