Government's the world over are never known for their efficiency so dealing with government sponsored organisations can be both a frustrating and a lengthy process. If you have a financial complaint in the UK most people will take it to the Financial Ombudsman Service (FOS) who have the powers to mediate.

However, this organisation, for many reasons is not known for reaching a quick decision. Some consumers with problems are therefore bypassing the FOS and are taking financial firms straight to the Small Claims Court.

And they seem to be getting better results than by sticking with the traditional FOS route.

What Is The Financial Ombudsman Service

The FOS was set up to help settle individual disputes between businesses providing financial services and their customers. Complaints can cover a wide range of financial matters - from insurance and mortgages to savings and investments.

The service is free to consumers but they must have initially complained to the finance company in question.

Over the last few years there has been an explosion in complaints to the FOS and many consumers are starting to become concerned by how long an average complaint is taking. They also feel rightly or wrongly that often the complaint process is akin to a 'show trial' in that many of the decisions are predefined.

Take The Matter Directly To Court

Companies don't like court action because it means they have to pay out for expensive solicitors even if they win. It's therefore not unheard of for people to settle out of court because it's cheaper than defending the case.

Some forward thinking consumers are saying to hell with the FOS and so are suing the finance firms directly. Taking a company or an individual to Court is easy these days and everything can be done online - HM Courts Website

Do You Have To Employ A Solicitor

The Court procedure is not as tricky as many make out, most of it is about following simple procedure . We know of one consumer who successfully defended himself over a travel insurance complaint by relying solely on the excellent book Small Claims Procedure: A Practical Guide by Judge Patricia Pearl which is available from Amazon.

Note, the Citizens Advice Bureau will also offer you free advice.

Summary

We like this idea of taking a finance firm to Court but only if the consumer is willing to put effort into preparing the case.

We have seen evidence over the last several years re bank charges and reclaiming of PPI (Personal Protection Insurance sold via Loans) that the banks will back down if the consumer takes them to court. Personally if I had a grievance with a bank or other institution I wouldn't hesitate in taking them to court.

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