View more on these topics

BSA slams watchdog on product rulings

The Building Societies Association has slammed the Financial Ombudsman Service for what it sees as a series of unjust decisions against its members on Tessas, Isas and mortgages.

At the BSA Conference in Bournemouth last week, chairman and Coventry Building Society chief executive Martin Ritchley criticised chief financial ombudsman Walter Merricks for his recent rulings against Nationwide&#39s dual pricing of mortgages and Norwich & Peterborough&#39s varying interest rates on Isas and Tessas.

He accused the ombudsman of being “unjust” in making retrospective decisions on pricing, saying societies face the situation of setting a price today which is ruled as unfair further down the line.

Council of Mortgage Lenders director general Michael Coogan also attacked the absence of an appeals&#39 procedure which would allow firms to challenge the ombudsman&#39s decisions. Firms are currently forced to take judicial action which can be costly and time-consuming if they want to contest a decision.

Ritchley said: “Societies have been surprised at the extent and the nature of the Ombudsman&#39s interventions in pricing decisions which at times have produced results which to many of us seem at odds with the principals of natural justice.”

Merricks said: “The old buildings societies ombudsman never faced appeals against decisions. Appeals would slow the process and societies can talk to the FSA if they are unhappy with decisions.”

BSA Conference, p9

Recommended

FSA warns Treasury on buy-to-let market risks

The FSA is concerned about risks to investors in the buyto-let market, adding to pressure on the Treasury to regulate the sector.At last week&#39s Building Societies&#39 Association conference, FSA director of high-street firms Sarah Wilson said the FSA has warned the Treasury about potential problems in the sector. She said “people are tempted by low […]

FSA paper points to misselling of splits

The FSA is issuing a paper this week in which it will state for the first time that there has been some evidence of misselling of splitcap investment trusts.The Feedback paper will say the FSA believes there has been misselling of the trusts although it will say it has not been as widespread as some […]

Aifa warning on loan introducers

Aifa is warning against too wide a definition of introducers in its response to the Treasury consultation on the regulation of mortgages. Aifa has raised concerns that some firms will want to become appointed representatives for a small amount of mortgage introductions and referrals, but will be unable to do so because they are authorised […]

Norwich and Peterborough – Portfolio Bonus Bond

Thursday, May 16, 2002Type: Unit-linked bond and high interest accountUNIT LINKED BONDAim: Growth by investing in up to six fundsMinimum investment: Lump sum £3,000Fund links: With-profit, with-profit income, guaranteed, defensivemanaged, cautious managed, balanced managed, property, deposit,gilt, global bond, corporate bond, higher income bond, UK indextracking, UK equity, UK equity income, UK equity ethical, UK equitygrowth, […]

Pensions Dashboards around the World

Steve Webb’s latest policy paper British savers risk being left in the ‘slow lane’ unless the UK Government takes a more active role in ensuring the successful delivery of a Pensions Dashboard. The report, ‘Pensions Dashboards around the World’, coincided with a major conference that was held on Monday 16 May and brought together experts […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment