An ombudsman is a service that upholds best practice expectations for services and if you have been treated badly by a retailer, energy company, or even a local authority – you could get help from an ombudsman
You might have heard of an ombudsman, but do you know what they can (and can’t) do? MoneyMagpie Editor and financial expert Vicky Parry explains how an ombudsman can help you reclaim lost money.
What is an ombudsman?
An ombudsman is a service that upholds best practice expectations for services. What this means is that they can make sure retailers, energy companies, and even local authorities are run in accordance with laws and guidelines.
When something goes wrong, a company is supposed to work with the customer to find a solution. But, this doesn’t often happen. So the ombudsman steps in to look at both sides and mediate between them. If someone still isn’t happy with the offered solution, they can try to take the company to court. The ombudsman is the step before that – and most cases are resolved at this stage.
Different ombudsmen for different needs
There isn’t a single ombudsman body. There are different ones for a range of suppliers and services:
There is also a Legal Ombudsman, which it is important to note is for complaints from customers about legal services, not for those unhappy with the outcome of a legal process. A full list of ombudsman services can be found here.
When to contact an ombudsman
When you’re unhappy with a service, you can’t go straight to the ombudsman. First, you have to attempt to resolve the issue with the service provider and give them a reasonable time to do so.
What this means in reality is that, from the date you make a first written complaint (or telephone – but we advise complaints are always made in writing), the clock starts. They then have eight weeks to respond.
If a company has not responded within the eight weeks, you can escalate to the relevant ombudsman. You can also do this if the company sends you a ‘deadlock letter’ sooner than eight weeks, which states they do not think they are wrong and that you can approach the ombudsman if you disagree. Eight weeks is the most common timescale, but each ombudsman is different so check their details first.
What to expect from the ombudsman
An ombudsman does not automatically side with the customer, nor are they designed to be legal counsel for them. What they will do is gather all of the evidence from both the customer and the supplier and look at it with an unbiased eye.
They will follow certain frameworks and requirements, to see if a complaint has been correctly handled or if the customer has reason to be compensated for mishandling of a complaint.
How an ombudsman can help you reclaim your money
The ombudsman will be able to decide if a company owes you a refund or partial refund for their poor service or product. This is not on a moral decision but based in fact and against a strict framework from which the ombudsman has to apply standards to see if the retailer or supplier did fail in their duty.
When a company is found to have been at fault, the ombudsman can instruct them to repay a full or partial refund. More than that, they can also insist on an additional payment for the inconvenience suffered by the customer from their poor handling. This payment can start quite low at around £50, but can often be much higher if a complaint has been ongoing over a long period of time.
It can be a slow process, but at MoneyMagpie we always suggest people take the time to apply to an ombudsman if they have been unhappy with a service. Not only could it result in some money back, but it could also mean the company learns from their mistakes to stop someone else going through the same thing!
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