The British Bankers' Association ( BBA ) was a trade association for the UK banking and financial services sector. From 1 July 2017, it was merged into UK Finance .
55-912: The Financial Ombudsman Service is an ombudsman in the United Kingdom . It was established in 2000, and given statutory powers in 2001 by the Financial Services and Markets Act 2000 , to help settle disputes between consumers and UK -based businesses providing financial services , such as banks, building societies, insurance companies, investment firms, financial advisers and finance companies. The Financial Ombudsman Service can deal with complaints from consumers about most financial matters including, for example: banking, insurance, mortgages, pensions, savings and investments, credit cards and store cards, loans and credit, hire purchase and pawnbroking, financial advice, stocks, shares, unit trusts and bonds. From November 2009 money-transfer operators also came under
110-571: A credit report or reinstating a no-claims discount. The ombudsman's goal is to restore the situation one would have been in if the company had acted correctly. The ombudsman makes decisions on the basis of what it believes is fair and reasonable in the particular circumstances of each case. In making decisions on individual complaints, the law requires the ombudsman to take into account: relevant law and regulations; regulator's rules, guidance and standards; codes of practice; and (where appropriate) what he/she considers to have been good industry practice at
165-419: A designated neutral party, one who is high-ranking in an organization, but who is not part of executive management. Using an alternative dispute resolution (ADR) or appropriate dispute resolution approach, an organisational ombudsman can provide options to whistleblowers or employees and managers with ethical concerns; provide coaching, shuttle diplomacy, generic solutions (meaning a solution which protects
220-539: A forum to inform the agenda of the BBA board and policy committees. There was a member segment advisory board for the major retail banks, challenger banks, small banks, major international wholesale banks, foreign banks, private banks and wealth management, and custody banking. The BBA had four high-level committees, representing retail policy, financial policy and risk, wholesale policy, and corporate policy. Below its board, member segment advisory boards and high-level committees,
275-412: A national ombudsman and may also be appointed by a legislature. Below the national level, an ombudsman may be appointed by a state, local, or municipal government. Unofficial ombudsmen may be appointed by, or even work for, a corporation such as a utility supplier, newspaper, NGO , or professional regulatory body. In some jurisdictions, an ombudsman charged with handling concerns about national government
330-437: A wide mandate to deal with the entire public sector, and sometimes also elements of the private sector (for example, contracted service providers). In some cases, there is a more restricted mandate to a certain sector of society. More recent developments have included the creation of specialized children's ombudsmen . In some countries, an inspector general , citizen advocate or other official may have duties similar to those of
385-656: A wide range of banking and financial services. The association lobbied for its members and gave its view on the legislative and regulatory system for banking in the UK. The BBA was founded in 1919 by the merger of two pre-existing bodies, the Central Association of Bankers (est. 1895 in London, 34 St Clements Lane) and the Association of English Country Bankers (est. 1874 and itself one of the Central Association's founders). Until 1972,
440-520: Is ombudsmen . In Nigeria, the ombudsman is known as the Public Complaints Commission or the ombudsman . In general, an ombudsman is a state official appointed to provide a check on government activity in the interests of the citizen and to oversee the investigation of complaints of improper government activity against the citizen. If the ombudsman finds a complaint to be substantiated, the problem may get rectified, or an ombudsman report
495-404: Is a government employee who investigates and tries to resolve complaints, usually through recommendations (binding or not) or mediation . They are usually appointed by the government or by parliament (often with a significant degree of independence). Ombudsmen also aim to identify systemic issues leading to poor service or breaches of people's rights. At the national level, most ombudsmen have
550-635: Is more formally referred to as the "parliamentary commissioner" (e.g. the United Kingdom Parliamentary Commissioner for Administration , and the Western Australian state Ombudsman ). In many countries where the ombudsman's responsibility includes protecting human rights, the ombudsman is recognized as the national human rights institution . The post of ombudsman had by the end of the 20th century been instituted by most governments and by some intergovernmental organizations such as
605-555: Is not optional and they are payable whether or not a complaint is upheld by the Financial Ombudsman Service. The service is free to consumers. Between 2006 and 2009 the ombudsman service made use of case-handling services provided by Deloitte LLP, to handle the growing volumes of work generated by payment protection insurance complaints. The Financial Ombudsman Service publishes the proportion of complaints it upholds in favour of consumers. Across all complaints in 2013/2014
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#1732847554098660-418: Is published making recommendations for change. Further redress depends on the laws of the country concerned, but this typically involves financial compensation. Ombudsmen in most countries do not have the power to initiate legal proceedings or prosecution on the grounds of a complaint. This role is sometimes referred to as a "tribunician" role, and has been traditionally fulfilled by elected representatives –
715-414: Is that the Financial Services and Markets Act 2000 which led to the establishment of the Financial Ombudsman Service requires the ombudsman to make decisions "by reference to what is, in the opinion of the ombudsman, fair and reasonable in all the circumstances of the case". In a judicial review of an ombudsman's decision brought by an independent financial adviser (IFA), the judge further clarified that
770-419: Is uncertain whether an issue falls within the ombudsman's scope or if one needs guidance on initiating a complaint, one can utilize the complimentary "complaint checker" available at their website. Here are some common areas where the ombudsman provides assistance: In addition to financial reimbursement, the ombudsman can request that companies address additional issues, such as amending inaccurate information on
825-493: The British Chambers of Commerce to deliver 15 outreach events across the UK throughout 2011 in support of this initiative. Better Business Finance is complemented by the website Mentorsme, an online gateway through which small and medium businesses can connect with mentoring organisations and individuals working in their area. The BBA had responsibility for a number of personal and business customer services. These included
880-759: The European Union . As of 2005, including national and sub-national levels, a total of 129 offices of ombudsman have been established around the world. A prototype of an ombudsman may have flourished in China during the Qin dynasty (221 BC), and later in Korea during the Joseon dynasty . The position of secret royal inspector , or amhaeng-eosa ( 암행어사 , 暗行御史 ) was unique to the Joseon dynasty, where an undercover official directly appointed by
935-694: The LIBOR scandal . Paul Tucker, Deputy Governor of the Bank of England, compared the BBA LIBOR market to a "cesspit" of dishonesty. In September, 2012, it was decided that the BBA would be stripped of its role in LIBOR rate setting. Martin Wheatley said "the BBA acts as the lobby organisation for the same submitting banks that they nominally oversee, creating a conflict of interest that precludes strong and credible governance". In 2014
990-516: The Liao dynasty , Japan, and China. An indigenous Swedish , Norwegian , and Danish term, ombudsman , ombodsmann , ombudsmann or ombudsmand is etymologically rooted in the Old Norse word umboðsmaðr , essentially meaning 'representative' (with the word umbud /ombod/ ombud meaning 'proxy', 'attorney'; that is, someone who is authorized to act for someone else, a meaning it still has in
1045-489: The BBA had a number of technical panels and working parties. The BBA responded to the full range of issues affecting retail and wholesale banking and the wider financial services industry. As well as its interaction with current affairs, it worked to form and reform lasting policy decisions. LIBOR (the London Interbank Offered Rate) was the primary benchmark for short-term interest rates . It indicates
1100-483: The BBA held 67 events attracting over 4,500 attendees. This included the association's annual conference and annual industry dinners, as well as a number of forums, briefings and training courses. The BBA produced a monthly report on High Street banking figures which is used by banks and by the media. This data informed the BBA Annual Abstract of Banking Statistics which was published each August. The BBA managed
1155-520: The BBA was only open to British domestic, colonial and dominion banks. In 1972, it opened itself to all banks operating in the United Kingdom. In 1975 responsibility for money transmission services moved to Association for Payment Clearing Services (APACS) (which became UK Payments Administration (UKPA) in 2009). In 1991, the Committee of London Clearing Bankers (est. 1821), which in 1985 had been renamed
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#17328475540981210-649: The CEO or board of directors, and according to the International Ombudsman Association (IOA) Standards of Practice, they do not have any other role in the organisation. Organisational ombudsmen often receive more complaints than alternative procedures such as anonymous hot-lines. Since the 1960s, the profession has grown in the United States, and Canada, particularly in corporations, universities, and government agencies. The organizational ombudsman works as
1265-481: The Committee of London and Scottish Bankers, was subsumed into the BBA. The BBA described itself as the leading trade association for the UK banking sector with more than 230 member banks headquartered in over 50 countries with operations in 180 jurisdictions worldwide. The BBA was a trade association owned and governed by its members. The board was the governing body of the Association. It agreed major strategies and policies. Member segment advisory boards provided
1320-493: The Financial Ombudsman Service has been publishing complaints data on its website every six months about named individual businesses. The data provided relates to businesses which have 30 or more new cases, or 30 or more resolved cases, in each six-month period. The data shows the number of new complaints, and the proportion of complaints upheld in favour of consumers. The complaints data shows that: The entire ombudsman staff in 2007 (including substantial number of ancillary staff)
1375-615: The Global Operational Loss Database (GOLD) for its members. GOLD is an important tool for managing operational risk. In line with the UK government's drive to support UK business, the BBA was a committed participant in the Business Growth Fund . The BBA was leading efforts to increase funding to small and medium-sized enterprises through the Better Business Finance campaign. The BBA collaborated with
1430-588: The Parliamentary Treasury Select Committee who can be contacted by the consumer's MP. In November 2011 the Financial Ombudsman Service became covered by the Freedom of Information Act 2000 . The ombudsman's website has a page of information on this subject Consumer satisfaction surveys – and surveys of businesses covered by the ombudsman – are conducted by the Financial Ombudsman Service on an ongoing basis. The results are published annually in
1485-679: The Scandinavian languages). In the Danish Law of Jutland from 1241, the term is umbozman and concretely means a royal civil servant in a hundred . From 1552, it is also used in other Nordic languages such as the Icelandic and Faroese umboðsmaður , the Norwegian ombudsmann / ombodsmann , and the Swedish ombudsman ( pronounced [ˈɔ̂mːbʉːdsˌman] ). The general meaning
1540-669: The Swedish Office of Supreme Ombudsman became the Chancellor of Justice . The Parliamentary Ombudsman was established in 1809 by the Swedish Riksdag , as a parallel institution to the still-present Chancellor of Justice, reflecting the concept of separation of powers as developed by Montesquieu . The Parliamentary Ombudsman is the institution that the Scandinavian countries subsequently developed into its contemporary form, and which subsequently has been adopted in many other parts of
1595-508: The average rate at which a leading bank can obtain unsecured funding for a given period in a given currency. It, therefore, represents the lowest real-world cost of unsecured funding in the London market. As such, LIBOR was one of the fundamental standards for global financial markets . Prior to September, 2012, BBA LIBOR was calculated and published by Thomson Reuters on behalf of the BBA. In July 2012, it came out that LIBOR had been systematically rigged by Barclays for many years, leading to
1650-399: The complaint to the ombudsman service. The ombudsman has the authority to request or require a company to offer financial compensation, correct a consumer's credit file, or offer an apology, as a means of dispute resolution. Utilizing the ombudsman is a highly effective approach. It is both more cost-efficient and safer compared to seeking resolution through legal channels. Crucially, unlike
1705-420: The court system, which primarily focuses on whether a company has breached any laws, the ombudsman operates under the regulator’s ‘treating customers fairly’ principles. This allows the ombudsman to make decisions against companies even if their actions are legally compliant, as the ombudsman considers additional factors beyond mere legal compliance. The three things it would look at are: In most cases, it means
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1760-474: The disputes that the Financial Ombudsman Service resolves are settled at earlier informal stages, without the intervention of an ombudsman. An ombudsman's decision is the final stage of the Financial Ombudsman Service's process. If the consumer with the complaint accepts a final decision, it is binding on both parties and enforceable in court. But if the consumer chooses not to accept an ombudsman's decision, their legal rights remain unaffected and they can take
1815-434: The identity of one individual by applying to a class of people, rather than just for the one individual) and mediation for conflicts; track problem areas; and make recommendations for changes to policies or procedures in support of orderly systems change. For specific ombudspersons or commissioners for children or young people, also see Children's ombudsman . British Bankers Association It represented members from
1870-586: The irrationality of the decision. The board of the Financial Ombudsman Service is appointed by the Financial Conduct Authority – and the appointment of the chairman is approved by HM Treasury. The board's role includes guarding the independence of the ombudsman – from undue influence by the financial services industry and trade bodies, regulators, consumer groups and government. Board members are non-executive – they have no involvement in individual complaints. The ombudsman can be asked to appear before
1925-638: The king was sent to local provinces to monitor government officials and look after the populace while travelling incognito. The Roman Tribune had some similar roles, with the power to veto acts that infringed upon the Plebeians . Another precursor to the ombudsman was the Diwān al-Maẓālim ( دِيوَانُ الْمَظَالِمِ ) which appears to go back to the second caliph , Umar (634–644), and the concept of Qaḍī al-Quḍāt ( قَاضِي الْقُضَاةِ ). They were also attested in Siam, India,
1980-402: The matter to court instead – subject to any requirements set by the courts. However, independent commentators generally recommend that consumers should use the ombudsman service rather than the courts as the outcome of court cases can be unexpected, disappointing and costly. However, there have been judicial reviews against the ombudsman, brought by financial services companies who have to accept
2035-702: The modern plural form ombudsmen of the English borrowed word ombudsman is likely. Use of the term in its modern sense began in Sweden with the Swedish Parliamentary Ombudsman instituted by the Instrument of Government of 1809, to safeguard the rights of citizens by establishing a supervisory agency independent of the executive branch . The predecessor of the Swedish Parliamentary Ombudsman
2090-410: The ombudsman found 58% in favour of consumers. The ombudsman was set up by parliament to be an impartial and independent body, though its decisions can be criticised by the side that loses. Independent commentators acknowledge that the ombudsman service is a valuable free service for consumers – although those who feel they have "lost" a complaint might understandably feel let down and want to question
2145-492: The ombudsman is "free to make an award different from that which a court applying the law would make". This means that a litigant has to surmount the very high hurdle of proving that the entirety of the ombudsman's decision was so unfair that no right minded person would have made a similar decision. This is referred to as the Wednesbury unreasonableness principle which applies to any application for judicial review under made due to
2200-703: The ombudsman will look at any trade bodies’ standards, such as the Lending Code. It can also evaluate what is considered standard ethical practice and what would be deemed reasonable given the situation. If a company deviates from these norms, it may judge its conduct as unjust and take steps to rectify the issue. What sort of products/services can one complain about? The ombudsman handles a broad spectrum of issues, having addressed over 280,000 complaints from April 2022 to March 2023 alone. Their remit extends beyond regulated financial activities to encompass overall company conduct, ensuring fair treatment in various aspects. If one
2255-445: The ombudsman – reflecting a substantially increased workload of over half a million cases last year (2014/2015). Staffing levels at the Financial Ombudsman Service fluctuate – as does the budget year-on-year – to match the volume of disputes it is dealing with. The number of staff required – and forecasts for complaints volumes and workload – are consulted on publicly each year in the ombudsman's corporate plan and budget. Around 90% of
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2310-510: The ombudsman's annual review. Customers of the Financial Ombudsman Service – both consumers and businesses – can seek redress from the Independent Assessor if they are unhappy with the level of service they have received. The Independent Assessor is appointed by the board of the Financial Ombudsman Service. The current holder of the post is Gillian Guy, previously Chief Executive of Citizens Advice for England and Wales, whose appointment
2365-581: The ombudsman's decisions which are binding in law. For example, in January 2011 the British Bankers Association – on behalf of a number of high-street banks – brought a judicial review against the ombudsman and the FSA on the approach to PPI complaints handling. The High Court rejected the banks' challenge and endorsed the approach taken by the ombudsman and the FSA. The difficulty in winning a judicial review
2420-581: The ombudsman's impartiality. Some consumers have questioned the amount of redress awarded by the ombudsman while many businesses expect the ombudsman to apply the compensation cap rigidly and lobbied against the increase (in January 2012) from £100,000 to £150,000 in the maximum compensation the ombudsman can tell a business to pay. Various websites have been set up to complain about the Financial Ombudsman's partiality – usually by people who disagree with particular ombudsman decisions. Since September 2009
2475-411: The ombudsman's remit. Before the ombudsman can step in, the consumer must first give the business they are unhappy with the opportunity to look into the complaint itself – before the ombudsman service can make a decision on the dispute. The business has a maximum of 8 weeks to resolve the complaint. If they do not resolve it within 8 weeks or the consumer is not happy with the response then they can refer
2530-535: The relevant time. The Financial Ombudsman Service is funded by the UK's financial services sector through a combination of statutory levies and case fees. These are paid by financial businesses that are regulated by the Financial Conduct Authority (FCA) or licensed by the Office of Fair Trading (OFT) and are automatically covered by law by the ombudsman service. The payment of these statutory levies and fees
2585-636: The selection of an appropriate individual for the office, and on the cooperation of at least some effective official from within the apparatus of the state. The institution has also been criticized: "Ombudsmen are relics of absolutism, designed to iron out the worst excesses of administrative arbitrariness while keeping the power structures intact." Many private companies, universities, non-profit organisations, and government agencies also have an ombudsman (or an ombuds office) to serve internal employees, managers and/or other constituencies. These ombudsman roles are structured to function independently, by reporting to
2640-748: The service. The UK Financial Ombudsman Service is a member of the International Network of Financial Services Ombudsman Schemes , a global association whose members operate as out-of-court dispute resolution mechanisms in the financial sector. Other members include: A list of all members can be found at the International Network's website . Ombudsman An ombudsman ( / ˈ ɒ m b ʊ d z m ən / OM -buudz-mən , also US : /- b ə d z -, - b ʌ d z -/ -bədz-, -budz- ), ombud , ombuds , bud , ombudswoman , ombudsperson , or public advocate
2695-409: The term refers to the ancient Roman " tribunes of the plebeians " ( tribuni plebis ), whose role was to intercede in the political process on behalf of common citizens. The significant advantage of an ombudsman is that they examine complaints from outside the offending state institution, thus avoiding the conflicts of interest inherent in self-policing. However, the ombudsman system relies heavily on
2750-503: The website My Lost Account, a free service that helps customers trace their lost accounts and savings. The BBA's three core priorities were helping customers, promoting growth and raising standards. Its strategy document gives further details about the Association's aims and values. The BBA Brief was a daily two-minute summary of the banking news that mattered sent at 10am. Anthony Browne succeeded Angela Knight as chief executive on 1 September 2012. In April 2017, he announced he
2805-419: The world. The word ombudsman and its specific meaning have since been adopted in various languages, such as Dutch. The German language uses Ombudsmann , Ombudsfrau and Ombudsleute . Notable exceptions are French, Italian, Spanish, and Finnish , which use translations instead. Modern variations of this term include ombud , ombuds , ombudsperson , or ombudswoman , and the conventional English plural
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#17328475540982860-496: Was 960. They managed to handle 627,814 initial enquiries and close 111,673 cases which had been sent to for adjudication. The BBC reported in September 2007 that the ombudsman planned to reduce staff numbers to 600, reflecting the decline in mortgage endowment complaints. By December 2009 ombudsman staff had increased to over 1,000 – reflecting a substantially increased workload of 200,000 cases. Currently there are 4,500 people working at
2915-501: Was and is approximately 'a man representing (someone)' (i.e., a representative) or 'a man with a commission (from someone)' (a commissioner). The Swedish-speaking minority in Finland uses the Swedish terminology. The various forms of the suffix -mand , -maður , et cetera, are just the forms the common Germanic word represented by the English word man have in the various languages. Thus,
2970-403: Was announced by the Financial Ombudsman Service on 26 August 2020 to take effect from October 2020. The Independent Assessor reports formally to the board of the Financial Ombudsman Service – which publishes a report in full each year as part of the Financial Ombudsman Service's annual review. The non-executive board of the Financial Ombudsman Service commissions three-yearly external reviews of
3025-567: Was the Office of Supreme Ombudsman ( Högste Ombudsmannen ), which was established by the Swedish King, Charles XII , in 1713. Charles XII was in exile in Turkey and needed a representative in Sweden to ensure that judges and civil servants acted in accordance with the laws and with their duties. If they did not do so, the Supreme Ombudsman had the right to prosecute them for negligence. In 1719
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