Forum

Insurance Business forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Insurance Business | 05 Aug 2014, 08:29 AM Agree 0
An ombudsman is investigating attempts by financial services providers to pass on legal fees and other costs associated with the dispute resolution process to customers.
  • Gwen Ford | 06 Aug 2014, 10:15 AM Agree 0
    I believe that some unscrupulous Consumers know the FOS system, and know that there is costs to FSP for disputes, even if it is found in favour of the FSP. They also know that if the claim they are disputing is less than the disputes costs, it becomes cheaper to pay the disputed claim than fight it.
    Perhaps if the client had to pay a lodgement fee of say $100, that will only be refunded if the dispute is resolved prior to going to dispute, or is determined in favour of the customer. If FOS determine in favour of the FSP then the $100 is forfeited. This would stop a large number of vexatious and frivolous complaints.
Post a reply