DISP 3.7 Awards by the Ombudsman
Where a complaint is determined in favour of the complainant, the Ombudsman's determination may include one or more of the following:17
- (1)
a money award against the respondent; or17
17 - (2)
an interest award against the respondent; or17
17 - (3)
a costs award against the respondent; or17
17 - (4)
a direction to the respondent.17
Money awards
Except in relation to a “relevant complaint” within the meaning of section 404B(3) of the Act10, a9 money award may be such amount as the Ombudsman considers to be fair compensation for one or more of the following:
9- (1)
financial loss (including consequential or prospective loss); or
- (2)
pain and suffering; or
- (3)
damage to reputation; or
- (4)
distress or inconvenience;
9In relation to a “relevant complaint” within the meaning of section 404B(3) of the Act10, 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.
- (1)
6Where the Ombudsman is determining what amount (if any) constitutes fair compensation as a money award in relation to a relevant new complaint, a relevant transitional complaint, or a relevant new claims management complaint, the Ombudsman Transitional Order, the Mortgages and General Insurance Complaints Transitional Order, and the Claims Management Order make provision for the Ombudsman 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 order came into effect.
- (2)
6Where the Ombudsman is determining what amount (if any) constitutes fair compensation as a money award in relation to a relevant transitional funeral plan complaint, the Funeral Plans Order makes provision for the Ombudsman to take into account what amount, if any, the Funeral Planning Authority might have been expected to award by way of compensation in relation to an equivalent complaint dealt with under the former scheme.
- (1)
- (2)
On 1 April each year, for complaints referred to the Financial Ombudsman Service on or after this date up to and including 31 March in the following year, the amounts in (1)(a) and (b) are adjusted by:5
[Note: The maximum money award which the Ombudsman may make is set out in the table below. This Note will be updated before any new limit takes effect.
5date complaint referred |
date of act or omission |
|
before 1 April 2019 |
on or after 1 April 2019 |
|
before 1 January 2012 |
£100,000 |
n/a |
before 1 April 2019 but on or after 1 January 2012 |
£150,000 |
n/a |
on or after 1 April 2019 |
£160,000 |
£350,000 |
on or after 1 April 2020 |
£160,000 |
£355,000 |
on or after 1 April 2022 |
£170,000 |
£375,000 |
on or after 1 April 2023 |
£190,000 |
£415,000 |
]
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 “relevant complaint” within the meaning of section 404B(3) of the Act.10
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 “relevant complaint” within the meaning of section 404B(3) of the Act.10
9Interest awards
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.
Costs awards
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.
Directions
1 7 Except in relation to a “relevant complaint” within the meaning of section 404B(3) of the Act10, a9 direction may require the respondent 9 to take such steps in relation to the complainant as the Ombudsman considers just and appropriate (whether or not a court could order those steps to be taken).
999In relation to a “relevant complaint” within the meaning of section 404B(3) of the Act10, 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.
Complying with awards and settlements
17A respondent must comply promptly with:
- (1)
any award or direction made by the Ombudsman; and
- (2)
any settlement which it agrees at an earlier stage of the procedures.