The rules will come into force as part of the Consumer Credit Act (CCA) from 6 April 2007.
Under the Act, the Financial Ombudsman Service (FOS) will review consumer credit complaints, and CCA changes also mean that how a consumer credit licence holder handles complaints could affect its ability to obtain or renew its licence.
Robert Sinclair, associate director of the AFB, said: “AFB members need to make sure that they have procedures in place to comply with the complaints handling rules, and that they understand the process to be followed once a case is referred to FOS. This factsheet has been designed help members prepare for the extension of FOS’s remit. It will also be important for members to consider if they now need Professional Indemnity Insurance cover (PI) or whether their existing policies fully cover the new regime.”
The factsheet covers:
- Which complaints can be referred to FOS,
- How FOS is funded,
- Professional Indemnity Insurance,
- What members need to do to prepare for the changes,
- Information on the complaints handling requirements and deadlines,
- Help with designing and implementing complaints procedures,
- Record keeping,
- Information on how FOS handles complaints referred to it,
- Ideas for improving customer’s complaints experience.
AFB members can download the factsheet using the link: www.a-m-i.org.uk/pdfs/AFBcomphandFS.pdf
