AMI calls on FOS go further than 25 free cases a year
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The Association of Mortgage Intermediaries has called on the Financial Ombudsman Service to go further in its move to increase the number of free complaints cases from three to 25 a year in 2013.
The changes come into place next year in a bid to tackle a flood of payment protection insurance cases but AMI believes the number is too low and FOS should allow 30 free cases before firms incur the £500 fee for case handling.
Robert Sinclair, director of AMI, says the move is positive and will benefit the industry but that 30 free cases would be more logical.
He says: “Given how few cases undertaken by the Ombudsman are related to intermediaries, it is absolutely right FOS recognises this by increasing the number of free cases for these firms.
“However, it is puzzling that the Ombudsman has not chosen to increase the number of free cases to 30. This is the half-yearly threshold for the number of cases a firm must receive and resolve before information is disclosed by FOS. This would have provided a more logical figure to base the number of free cases on.”
Sinclair adds that it is important FOS works for both consumers and the financial services industry.
Mortgage Strategy has campaigned to Make Claims Firms Pay for any complaints they make that cost brokers the £500 levy. You can sign the e-petition here.
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Readers' comments (3)
Toddy | 7 Jan 2012 10:43 am
My question to the AMI is whether they only represent DAs. Robert Sinclair does not mention how ARs could benefit from free cases.
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john cena | 9 Jan 2012 9:44 am
Absolutely agree with Toddy. 25 is pretty generous to be honest so im a little puzzled at why hes making a fuss about an extra 5. The real issue is the fact that ARs of networks aren't entitled to any free cases at all.
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Anonymous | 25 Jan 2012 9:44 am
I agree I have recently had a claims company ask for a mortgage file and go onto to make a complaint to FOS .I understand they had recently obtained several thousand pounds compensation on a ppi claim for the same client and were now making mortgage claims as they had nothing to loose .As an AR this automatically will cost at least £500.The claims company is driving the complaint.Why are AR,s not benefitting from 3 free cases what are the networks doing.Is there anyone out there trying to get this unfair rule changed
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