Complaints Handling Flashcards

What is 'redress' in the context of complaints?

Answer: Compensation or remedial action to put the customer back in the position they would have been in without the firm's error

Redress aims to put the customer back in the position they would have been in had the error or failing not occurred. This may include financial compensation, correcting an error, or other remedial action as appropriate.

What is a 'past business review' in relation to complaints?

Answer: A review of past sales or advice to identify and remediate cases where customers may have been harmed

A past business review involves a firm proactively reviewing its past sales, advice, or other activities to identify cases where customers may have been treated unfairly or suffered loss, and providing appropriate redress.

What is the difference between 'upheld' and 'rejected' complaints?

Answer: Upheld means the firm found in the complainant's favour; rejected means the firm did not accept the complaint

An upheld complaint is one where the firm has found in favour of the complainant and typically offers redress. A rejected complaint is one where the firm has not accepted the complaint after investigation.

What is the FCA's position on firms using 'non-disclosure agreements' (NDAs) in complaint settlements?

Answer: The FCA has stated that NDAs should not be used to prevent consumers from speaking to the FCA, FOS, or other regulators

The FCA has made clear that firms should not use NDAs or confidentiality clauses to prevent consumers from contacting or cooperating with the FCA, FOS, or other regulators. Such clauses should not be used to silence whistleblowers or complainants.

What is 'remediation' in the context of widespread complaints about a product?

Answer: A proactive programme to identify and compensate all affected customers, not just those who have complained

Remediation involves a firm proactively identifying all customers affected by an issue and providing appropriate compensation or correction, not just responding to individual complaints. The FCA often requires remediation for widespread failings.

What are 'super-complaints' under the FCA?

Answer: Complaints submitted by designated consumer bodies about features of the market that are significantly damaging consumer interests

Super-complaints can be made by designated consumer bodies (such as Which? or Citizens Advice) to the FCA about features of the market for financial services that are or appear to be significantly damaging the interests of consumers.