Name and shame threat

FINANCIAL institutions who are repeatedly the subject of complaints by consumers may be named and shamed, the new financial services ombudsman has threatened.

Joe Meade, the former Date Protection Commissioner and new Financial Services Ombudsman, said his office would not hesitate to name institutions which have been in dispute with customers, if it needed to ensure greater protection for consumers.

The Financial Services Ombudsman’s office mediates between customers who are in disputes with banks, life insurance companies and other credit institutions. The office can award damages of up to €250,000 to consumers.

The new body combines the functions of the ombudsman for credit institutions and the role of the insurance ombudsman.

Gerry Murphy, of the credit institutions ombudsman, and Caroline Gill, the insurance ombudsman, have been named as Mr Meade’s deputies.

The office has also been given the power to intervene in disputes between credit unions, mortgage lenders, moneylenders, pawnbrokers, hire purchase companies and financial intermediaries.

In a warning to the country’s banks following last year’s foreign exchange overcharging scandal and the NIB inspectors’ report, Mr Meade yesterday said he would draw the attention of the financial services regulator IFRSA to problems if he felt a pattern of non-compliance emerging.

“It is my intention to be as open and communicative as possible. The greatest sanction is to name the offending institution,” Mr Meade said yesterday.

He said the office will ensure that institutions treat their customers fairly and that complaints sent to his office will be investigated swiftly and resolved within three months.

All consumers, charities, clubs, trusts and businesses with turnover of less than €3 million a year can make a complaint to the office.

The new body was welcomed by Finance Minister Brian Cowen yesterday. Mr Cowen welcomed Mr Meade’s appointment as did Fine Gael finance spokesman Richard Bruton.