Christopher Woolard, FCA director of policy, risk and research
Financial services firms could be barred from using premium rate telephone numbers for customers as part of a series of proposals from the FCA on changes to the rules on complaint handling and post-sale telephone calls.
The FCA also proposes to "improve transparency" by requiring firms to report all complaints to the FCA, not just those where final response letters are issued, as happens now. Firms will also have to analyse and report the causes and categories of complaints, which will be published alongside details about the size of firms, to provide "greater context" and allow for comparison of performance.
The proposals come after a thematic review on complaint handing by the regulator which wants to reform the way complaints will be dealt with and reported. The changes are open to consultation.
Christopher Woolard, director of policy, risk and research, said: "Consumers want a simple way to complain that does not leave them out of pocket. And they want to be assured that their concerns will be dealt with fairly and quickly.
"These proposed reforms will further improve the system, making it less bureaucratic for firms, easier for consumers and will provide us with improved intelligence on complaints."
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Under the current rules, complaints that are dealt with by the end of the next business day do not require a letter to be sent to the customer. For these quickly resolved complaints, if dissatisfied the customer could have to wait up to eight weeks before being able to go to the Financial Ombudsman Service (ombudsman service).
The FCA says that the recent thematic work showed that the one day deadline could lead to some unintended consequences, with consumers often reasonably expecting a complaint to be dealt with quickly and, where appropriate, informally. The FCA is now proposing to extend the period during which complaints can be resolved without the need for a formal letter. Firms will be allowed up to three business days to deal with less complex complaints. This will help avoid unnecessary procedure and ensure that consumers have matters resolved faster, says the watchdog.
Under the proposals, complainants will be able to refer all cases to the ombudsman service immediately after receiving the firm's response. Firms will also have to inform customers, in writing, that they are able to take their complaint to the ombudsman service if they are dissatisfied with the resolution.
The FCA is also consulting on amendments to the complaints handling rules to implement the Alternative Dispute Resolution Directive (ADRD).
In addition, the FCA is continuing its work to consider the case for a 15 year 'long stop' on complaints to the ombudsman service.
