The Financial Ombudsman Service’s latest circular responds indirectly to criticisms by Financial Service Provider members that FOS is taking too long to resolve consumer claims, especially those lodged after default notices and legal proceedings have issued, resulting in a postponement of enforcement proceedings.
Concerns about EDR system shopping by consumers (where for a example a licensee and a credit representative are members of different EDR schemes) are discussed in an article about FOS’s agreement with COSL about which scheme will apply in such circumstances. FOS also sets out its approach when a dispute involves 2 separate FOS members.
FOS has also made it clear that in deciding financial difficulty disputes FOS will form an opinion about what is fair in all the circumstances, having regard to:
b.Applicable industry codes or guidance as to practice;
c.Good industry practice; and
d.Previous relevant decisions of FOS or a predecessor scheme
FOS members may find it useful to undertake its elearning course on its terms of reference and case management in order to efficiently deal with the EDR process as well as review its Operational Guidelines.
The best way to shorten (or avoid) a lengthy EDR process is to improve the effectiveness of your IDR process.