DISP 3.7 Awards by the Ombudsman
Where a complaint is determined in favour of the complainant, the Ombudsman's determination may include one or more of the following:16
- (1)
a money award against the respondent; or16
16 - (2)
an interest award against the respondent; or16
16 - (3)
a costs award against the respondent; or16
16 - (4)
a direction to the respondent.16
Money awards
Except in relation to a “relevant complaint” within the meaning of section 404B(3) of the Act9, a8 money award may be such amount as the Ombudsman considers to be fair compensation for one or more of the following:
8- (1)
financial loss (including consequential or prospective loss); or
- (2)
pain and suffering; or
- (3)
damage to reputation; or
- (4)
distress or inconvenience;
8In relation to a “relevant complaint” within the meaning of section 404B(3) of the Act9, a money award is a payment of such amount as the Ombudsman determines that a respondent should make (or should have made) to a complainant under the scheme.
8A money award under DISP 3.7.2A G may specify the date by which the amount awarded is to be paid.
16Where the Ombudsman is determining what amount (if any) constitutes fair compensation as a money award in relation to a relevant new complaint or a relevant transitional complaint, the Ombudsman Transitional Order and the Mortgages and General Insurance Complaints Transitional Order require him to take into account what amount (if any) might have been expected to be awarded by way of compensation in relation to an equivalent complaint dealt with under the former scheme in question immediately before the relevant transitional order came into effect.
3The effect of section 404B(5) of the Act is that the maximum award which the Ombudsman may make also applies in relation to a “relevant complaint” within the meaning of section 404B(3) of the Act.9
16If the Ombudsman considers that fair compensation requires payment of a larger amount, he may recommend that the respondent pays the complainant the balance. The effect of section 404B(6) of the Act is that this is also the case in relation to a “relevant complaint” within the meaning of section 404B(3) of the Act.9
8Interest awards
8A money award under DISP 3.7.2A G may provide for interest to be payable, at a rate specified in the award, on any amount which is not paid by the date specified in the award.
Costs awards
16In most cases complainants should not need to have professional advisers to bring complaints to the Financial Ombudsman Service, so awards of costs are unlikely to be common.
Directions
1 6 Except in relation to a “relevant complaint” within the meaning of section 404B(3) of the Act9, a8 direction may require the respondent 8 to take such steps in relation to the complainant as the Ombudsman considers just and appropriate (whether or not a court could order those steps to be taken).
888In relation to a “relevant complaint” within the meaning of section 404B(3) of the Act9, a direction may require the respondent to take such action as the Ombudsman determines the respondent should take (or should have taken) under the scheme.
Complying with awards and settlements
16A respondent must comply promptly with:
- (1)
any award or direction made by the Ombudsman; and
- (2)
any settlement which it agrees at an earlier stage of the procedures.