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CRED 17.4 Internal complaint handling procedures: additional requirements

CRED 17.4.1R

The additional requirements in CRED 17.5 - CRED 17.7 (on time-limits, record-keeping; reporting and cooperation with Ombudsman) do not apply:

  1. (1)

    where the credit union has taken reasonable steps to determine, and has determined, that the complaint:

    1. (a)

      is not made by, or on behalf of, an eligible complainant; or

    2. (b)

      does not relate to an activity of that credit union(or of any other firm with whom that credit union has some connection in marketing financial services) 1which comes under the jurisdiction of the Financial Ombudsman Service; or

    3. (c)

      does not involve an allegation that the complainant has suffered, or may suffer, financial loss, material distress or material inconvenience; or

  2. (2)

    where the complaint has been resolved by close of business on the business day following receipt.

CRED 17.4.2G

DISP 2.3 (To which activities does the Compulsory Jurisdiction apply?) 3sets out the activities which come under the Compulsory Jurisdiction3 of the Financial Ombudsman Service, as follows:

33
  1. (1)

    regulated activities;

  2. (2)

    lending money secured by a charge on land;

  3. (3)

    lending money (excluding restricted credit where that is not a consumer credit activity);3

    3
  4. (4)

    paying money by a plastic card (excluding a store card where that is not a consumer credit activity);3

    3
  5. (5)

    providing ancillary banking services;3

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  6. (6)

    consumer credit activities;2

or any ancillary activities, including advice, carried on by the firm in connection with them.3

3
CRED 17.4.3G

Financial loss includes indirect or future loss, in addition to actual loss. For example, a complaint may involve an allegation that the complainant may suffer financial loss which has not yet occurred.

1Referring complaints

CRED 17.4.4R
  1. (1)

    1A credit union which has reasonable grounds to be satisfied that another firm may be solely responsible for the fault alleged in a complaint may refer the complaint to that other firm but if it does so it must:

    1. (a)

      refer the complaint promptly and in any event within five business days of the date on which it became satisfied that such other firm may be responsible for the subject matter of the complaint;

    2. (b)

      make the referral using a durable medium; and

    3. (c)

      inform the complainant of the referral by way of a final response and include the other firm's contact details.

  2. (2)

    A credit union which has reasonable grounds to be satisfied that another firm may be jointly responsible for the fault alleged in a complaint, may refer the complaint to that other firm but if it does so it must:

    1. (a)

      refer the complaint promptly and in any event within five business days of the date on which it became satisfied that such other firm may be jointly responsible for the subject matter of the complaint;

    2. (b)

      make the referral using a durable medium;

    3. (c)

      at the same time inform the complainant of the referral and include the other firm's contact details; and

    4. (d)

      comply with the obligations in CRED as to the investigation of that part of the complaint that is the credit union's responsibility and, as soon as possible, inform the complainant of the outcome by a final response.

1Dealing with a referred complaint

CRED 17.4.5R

1When a firm receives a complaint referred to it under CRED 17.4.4 R, the complaint is treated for the purposes of CRED as if made directly to that firm, and as if received by it when the referral was received.

CRED 17.4.6G

1On receiving a complaint referred by a firm, the standard time limits will apply from the date on which the credit union receives the referral. In particular, CRED 17.5.1 R requires the credit union to send a written acknowledgement to the complainant within five business days. A credit union should copy this acknowledgement to the firm which made the referral.