Can Consumers having been awarded financial compensation by the Financial Ombudsmen Service pursue a further claim for loss through the Courts?
The Financial Ombudsmen service (FOS) provides a relatively straight forward and free dispute resolution service to consumers. However, the amount of compensation that the FOS can award is fixed (currently £100,000). The Court of Appeal had to deal with a claim where the consumer was alleging that they had suffered loss over and above the amount of compensation that had been awarded to them by the FOS. They found that the FOS award could in certain circumstances (which existed in this case) be seen as a final award made after a hearing, which would prevent any further claims arising out of the same facts being made.
This ruling will not apply in every case, but its worth considering, where you have a claim which is likely to be above the amount of compensation that the FOS can award, if it would be more appropriate to pursue the claim through the Courts.
If you would like more information on this topic, please contact Peter Corrigan.