HomeFinance:  Financial Ombudsman Service Helps Consumers

Using the Financial Ombudsman Service

Although many people may not actually know what it is, the financial ombudsman service was developed or created to protect people and better provide for their needs. Insurance is of primary importance in today's society, especially because of the high costs of medical bills and other expenses covered by insurance companies. However, anyone who has ever dealt with insurance companies, especially in trying to resolve a problem, can attest to the difficulty involved with getting one's needs met adequately and fairly. To help with this problem and make it easier and less confusing for people to seek and find help, the financial ombudsman service was created to provide fair investigation and judgment.

What the Financial Ombudsman Service Can Do for You

Strictly defined, the financial ombudsman service is a separate bureau that was created by major insurance companies. This bureau is responsible for protecting consumer interests relating to insurance claims and consumer complaints. Although each insurance company undoutedly has its own mechanism or procedure for addressing consumers' complaints, many consumers find that after going through all the required, tedious, and time-consuming steps, their issue is still unresolved. Furthermore, some consumers in certain instances feel that they do not receive impartial, fair treatment or judgment since the people who are responsible for reviewing the situation have ties to the insurance company.

One of the benefits of the financial ombudsman service is that it makes it easy for consumers to understand the steps involved in resolving their complaints. The insurance world can be quite complex and knowing whom to contact to resolve your issue is usually one of the largest and most difficult hurdles. The creation of the financial ombudsman service gives consumers one place to go to meet their needs.

Aside from the ease of contacting someone, one of the greatest benefits of the financial ombudsman service has to be the fact that it is an independent, non-associated organization. It was first created in 2001, assuming full powers in November, and it combines the complaint-handling mechanisms of about eight insurance companies. It is free to consumers, so they do not have to worry about paying for justice. Because it is an independent organization, its decisions are truly impartial and fair. Insurance companies are obligated to abide by the decisions ruled upon by the financial ombudsman service, but the consumers or insured, if they wish, can still carry their cases to the courts after the financial ombudsman service makes a decision.

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