But less than half of complaints against advisers were upheld suggesting many mortgage brokers are the victims of over exuberant claims management companies (CMCs). So, faced with a complaint, what should the honest broker do?
For this week’s Marketwatch, our commentators are:
London & Country Mortgages associate communications director David Hollingworth, who says the best defence against complaints is solid recordkeeping
Goldsmith Williams partner Eddie Goldsmith, who recommends a robust but professional response will put paid to half of all complaints immediately
Cambridge Building Society mortgage and intermediary sales manager Tracy Simpson, who urges brokers to put themselves in their customers’ shoes
David Hollingworth, associate communications director, London & Country Mortgages
There is absolutely nothing that a broker can do to stop a complaint being made, whether it comes from the customer directly or via a claims management company (CMC). In fact, customers should have the right to complain.
Of course it can be frustrating when a CMC submits a complaint that seems to have no real basis having reviewed the file. Treating customers fairly dictates there should be no unreasonable barriers to consumer complaints and so CMC claims should be dealt with in exactly the same way as one direct from the client.
The best defence against complaints is of course to have happy, informed customers but failing that, solid recordkeeping will allow brokers to rebut CMC complaints with confidence. Although not a regulatory requirement, many brokers will still provide a letter detailing the reasons for recommending products. This kind of personalisation can be very helpful in defending against an unfounded complaint.
That doesn’t mean that a complaint will not end up with FOS of course, as there is really nothing to lose for the CMC. The bigger picture has to be the broader education of consumers so they realise that if they have a genuine complaint they can take it up themselves. Secondly, effective regulation of CMCs to prevent spurious and time-wasting complaint generation is something that trade bodies will no doubt be working hard on.
Eddie Goldsmith, partner, Goldsmith Williams
Paperwork, paperwork, paperwork is the short answer to this question.
Brokers can protect themselves against complaints by ensuring that all their paperwork is in good order. Ensuring clear and comprehensive documentation every step of the way is a must.
And there is an inherent danger in any oral communication that isn’t backed up by something in writing if a complaint arises, so always confirm a conversation by an email or letter.
If you find a complaint has been lodged against you then don’t ignore it. Our experience is that when complaints are dealt with robustly with a full, objective, professional and substantiated response then as many as half of such complaints will be dropped immediately.
Your rights under law differ from those in a civil court as the Ombudsman does not carry the same burden of proof and therefore I’d recommend engaging a legal specialist. A lawyer can give you the best chance of success by considering your case on an individual basis and preparing the strongest possible case for defence.
Tracy Simpson, mortgage and intermediary sales manager, Cambridge Building Society
Following the Financial Ombudsman Service’s annual review last week it was noted that the number of complaints upheld against IFAs had fallen to 42% in the past 12 months. This figure highlights that whilst brokers can’t stop CMC-generated complaints there are steps they can take to minimise the number of complaints raised against them.
Here at the Cambridge, our main focus is on our service to customers and we demonstrate this by doing the following:
• Keeping customers informed about the services we offer on an ongoing basis
• Maintaining a good positive relationship with our customer base
• Knowing our customers well
To help us respond effectively should a CMC generated complaint arise, we keep clear documentation and maintain high standards of record-keeping. We also respond positively and openly to any customer complaints or queries.
We believe that brokers should continue to provide an excellent level of service to their customers and continually challenge this by putting themselves in their customers’ shoes. By doing so, they can minimise the number of substantiated complaints raised against them and it can help them when responding to any unsubstantiated claims that they may receive.
