DISP 3.7 Awards by the Ombudsman

9In relation to a complaint the subject matter of which falls to be dealt with (or has properly been dealt with) under a consumer redress scheme, a money award is a payment of such amount as the Ombudsman determines that a respondent should make (or should have made) to a complainant under the scheme.

9A money award under DISP 3.7.2A G may specify the date by which the amount awarded is to be paid.

17Where the Ombudsman is determining what amount (if any) constitutes fair compensation as a money award in relation to a relevant new complaint or a relevant transitional complaint, the Ombudsman Transitional Order and the Mortgages and General Insurance Complaints Transitional Order require him to take into account what amount (if any) might have been expected to be awarded by way of compensation in relation to an equivalent complaint dealt with under the former scheme in question immediately before the relevant transitional order came into effect.

3The effect of section 404B(5) of the Act is that the maximum award which the Ombudsman may make also applies in relation to a complaint the subject matter of which falls to be dealt with (or has properly been dealt with) under a consumer redress scheme.

17For the purpose of calculating the maximum money award, the following are excluded:

1. (1)

   any interest awarded on the amount payable under a money award;

2. (2)

   any costs awarded; and

3. (3)

   any interest awarded on costs.

17If the Ombudsman considers that fair compensation requires payment of a larger amount, he may recommend that the respondent pays the complainant the balance. The effect of section 404B(6) of the Act is that this is also the case in relation to a complaint the subject matter of which falls to be dealt with (or has properly been dealt with) under a consumer redress scheme.9

9A money award under DISP 3.7.2A G may provide for interest to be payable, at a rate specified in the award, on any amount which is not paid by the date specified in the award.

17In most cases complainants should not need to have professional advisers to bring complaints to the Financial Ombudsman Service, so awards of costs are unlikely to be common.

9In relation to a complaint the subject matter of which falls to be dealt with (or has properly been dealt with) under a consumer redress scheme, a direction may require the respondent to take such action as the Ombudsman determines the respondent should take (or should have taken) under the scheme.

17Under the Act, a complainant can enforce through the courts a money award registered by the Ombudsman or a direction made by the Ombudsman.