Where a complaint is determined in favour of the complainant, the Ombudsman's determination may include one or more of the following:
a money award against the respondent; or
an interest award against the respondent; or
a costs award against the respondent; or
a direction to the respondent.
Except in relation to a “relevant complaint” within the meaning of section 404B(3) of the Act, a money award may be such amount as the Ombudsman considers to be fair compensation for one or more of the following:
financial loss (including consequential or prospective loss); or
pain and suffering; or
damage to reputation; or
distress or inconvenience;
whether or not a court would award compensation.
In relation to a “relevant complaint” within the meaning of section 404B(3) of the Act, 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.
A money award under DISP 3.7.2A G may specify the date by which the amount awarded is to be paid.
Where the Ombudsman is determining what amount (if any) constitutes fair compensation as a money award in relation to a relevant new complaint, a relevant transitional complaint, or a relevant new claims management complaint, the Ombudsman Transitional Order, the Mortgages and General Insurance Complaints Transitional Order, and the Claims Management Order make provision for the Ombudsman 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 order came into effect.
Where the Ombudsman is determining what amount (if any) constitutes fair compensation as a money award in relation to a relevant transitional funeral plan complaint, the Funeral Plans Order makes provision for the Ombudsman to take into account what amount, if any, the Funeral Planning Authority might have been expected to award by way of compensation in relation to an equivalent complaint dealt with under the former scheme.
(1)
The maximum money award which the Ombudsman may make is:
(2)
On 1 April each year, for complaints referred to the Financial Ombudsman Service on or after this date up to and including 31 March in the following year, the amounts in (1)(a) and (b) are adjusted by:
(a)
applying the percentage increase in CPI between January 2019 and January of that year; and
(b)
rounding down to the nearest £5,000.
[Note: The maximum money award which the Ombudsman may make is set out in the table below. This Note will be updated before any new limit takes effect.
| date complaint referred | date of act or omission | |
| before 1 April 2019 | on or after 1 April 2019 | |
| before 1 January 2012 | £100,000 | n/a |
| before 1 April 2019 but on or after 1 January 2012 | £150,000 | n/a |
| on or after 1 April 2019 | £160,000 | £350,000 |
| on or after 1 April 2020 | £160,000 | £355,000 |
| on or after 1 April 2022 | £170,000 | £375,000 |
| on or after 1 April 2023 | £190,000 | £415,000 |
| on or after 1 April 2024 | £195,000 | £430,000 |
| on or after 1 April 2025 | £200,000 | £445,000 |
| on or after 1 April 2026 | £205,000 | £455,000 |
]
The 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.
For the purpose of calculating the maximum money award, the following are excluded:
any interest awarded on the amount payable under a money award;
any costs awarded; and
any interest awarded on costs.
If 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.
The Ombudsman will maintain a register of each money award.
Except in relation to a “relevant complaint” within the meaning of section 404B(3) of the Act, an interest award may provide for the amount payable under the money award to bear interest at a rate and as from a date specified in the award.
A 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.
A costs award may:
be such amount as the Ombudsman considers to be fair, to cover some or all of the costs which were reasonably incurred by the complainant in respect of the complaint; and
include interest on that amount at a rate and as from a date specified in the award.
In 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.
Except in relation to a “relevant complaint” within the meaning of section 404B(3) of the Act, a direction may require the respondent 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).
In relation to a “relevant complaint” within the meaning of section 404B(3) of the Act, 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.
A respondent must comply promptly with:
any award or direction made by the Ombudsman; and
any settlement which it agrees at an earlier stage of the procedures.
