Providers that are frequently complained about will also be publicly named and shamed by the Financial Conduct Authority (FCA) as part of the changes that take effect today. Previously, the firms were exempted from reporting complaints that were tackled before the end of the next business day.
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– This will extend to thee days from 30 June 2016.
The regulator also published new rules on call charges, stating that financial services firms will be unable to charge their customers premium rates when they make phone calls to ask for assistance or to complain.
Previously firms had to attempt to resolve a complaint within one day but this has now been extended to three days.
The FCA said that firms should strip out “complex jargon” and give customers easy-to-understand key information to help them compare savings accounts, with proposed summary boxes.
The regulator must now be notified of all complaints that are made to companies and this information will be available to consumers to help them make better decisions about which firms to trust.
The FCA also intends to become active in publishing information to highlight which providers are paying poor interest rates to longstanding customers, in the hope that it will encourage those people to shop around and get a better deal.
If a complaint is resolved during this three-day period, firms will be required to send their customers a simpler, template message.
The FCA plans to force firms to provide clearer information on the interest rates on their cash savings products as well as clearly alerting them to a change in the rate of interest they are receiving, for example when an introductory bonus rate comes to an end.
For instance the government set up a free at-retirement guidance service for all retirees this year following its pension freedom reforms, which could have skewed complaints figures under the old rules.
Christopher Woolard, Director of Strategy and Competition at the FCA, said that customers should be provided with clear information that is easy to understand, and should be allowed to move accounts “with the minimum of fuss”.
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The vast majority of firms would also have to offer seven-day switching of cash Isas from January 2017, though very small providers would be exempt from this. A properly resolved complaint can keep a customer happy, and protect the firm’s reputation.
