How to take on financial goliaths and win – five top tips to ensure your complaint is successful

IF you have an issue with a financial company, it can feel like a real David versus Goliath battle.

But you do have plenty of weapons in your arsenal.

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This week Rosie Murray-West shares the steps you can take – and reveals which areas are more likely to lead to a payout.

GET COMPLAINING

IF a financial company turns down your request for a refund or compensation for poor treatment, you can go to the Financial Ombudsman Service, which takes on cases for free.

The ombudsman found in the customer’s favour in almost half of cases to do with popular products such as short-term loans, bank overdrafts and pensions.

Consumer expert Martyn James says the high win rate should encourage people to complain when things are not right.

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He added: “Customers should always complain to the ombud-sman if they feel aggrieved and the company hasn’t dealt with it well.

“It is free, takes around 15-20 minutes and you can do it while you’re watching the telly.”

After an investigation, the ombudsman will issue a final binding judgement that could result in financial companies paying you thousands of pounds.

The highest amount it can order is £430,000.

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Remember, there’s nothing to lose, and everything to gain.

Here are some of the financial products where the ombudsman is most likely to rule in your favour.

DOORSTEP LENDING

CUSTOMERS won half of all the “home credit” complaints last year.

Home credit is another name for doorstep lending, where a lender turns up at your home to arrange small loans, and then collects the interest in a similar way.

Common complaints include:

•  Being offered a loan that was unaffordable due to circumstances.
•  Lenders not acting fairly when circumstances changed.
•  Rude and intimidating behaviour from lenders.

If the ombudsman agrees that a lender has acted unfairly it can refund interest and charges paid on the loans, remove adverse information on credit files and award compensation.

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HELP-TO-BUY OR SHARED EQUITY HOMES

THESE schemes are meant to make it easier to get on the property ladder, but there have been problems, with customers winning 64 per cent of cases.

Complaints about these home loans include:

• Delays in being able to redeem Help-to-Buy loans.
•  Poor customer service and administrative issues.
• Problems with redeeming loans on properties with cladding issues following the Grenfell Tower fire.

In one case, Target Limited, which administers the loans on behalf of the Government, was told to repay all the interest paid by a borrower — with eight per cent interest added — and pay out £500 in compensation.

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PREPAID CARDS

THESE cards, such as those taken on holiday to spend in a foreign currency, are seen as a safe choice.

However, in almost half of cases, the ombudsman found in the customer’s favour when cash was lost or not refunded.

Complaints include:

• Money not being refunded if cards are stolen then used.
• Companies not acting when customers are targeted by scammers.
• Restrictions put on e-money cards.
• Payments unfairly reversed.

Recent cases against PrePay Technologies, which runs cards for travel money brands, found that the company had not flagged potentially fraudulent transactions and would not refund money that had been stolen.

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PENSIONS AND ANNUITIES

JUST under half of all complaints about pensions and annuities were upheld by the Ombudsman last year.

Complaints about pensions and annuities include:

• Poor advice about transferring a pension from a workplace scheme to another scheme.
• Being recommended an unsuitable private pension.
• Annuity payments being paid too late.
• Administrative errors.

Recent decisions have included payouts where administrative errors have caused annuity payments to start late and where customers have been advised to switch their pensions into unregulated investments that later fell in value.

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CAR FINANCE

CUSTOMERS who took out car loans before 2021 may be entitled to thousands of pounds back after the financial regulator launched a review into unfair commission payments.

There is an ongoing investigation and claims are on hold.

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While you can put in a complaint now about commission payments, companies have much longer to respond, though you can still complain about other issues with car finance.

• You can find out more about how to complain on the ombudsman website .