Statement from Financial Ombudsman expected today

[BankFodder]

Apparently the FO will be making a statement in which he is likely to come down hard against the banks.

The FO is in a bind. Firstly he is concerned that complaints against bank charges have doubled and he is apparently receiving up to 150 new cases per week merely about bank charges.

Secondly, he is aware that by and large the public do not have much faith in the Ombudsman system.

Byall accounts, people are right to have no confidence in the Financial Ombudsman. We are not aware of any bank charges finding against the banks.

Secondly, it is clear that the public have no confidence in the Ombudsman. He is receiving 150 new cases per week. (He thinks that this is a lot).

TheConsumer Action Group is receiving about 4000 new cases per week.

Conclusion: people have confidence in The Consumer Action Group and in their own ability to challenge the banks and to secure their own remedies.

Go figure ....

[goforit]

The reason no findings have been made against the banks by the FSO is, similar to the situation in the courts, all of the claims are settled prior to a final decision being reached in a case.

Can't quite blame it on the FSO. Although the FSO could make a pre-emptive judgement on bank charges, which he has hinted at. However, any such a decision, although may be persuasive, wouldn't be a binding authority on the courts.