A one-day target for finance firms to resolve customer complaints is to be abolished while premium rate charges will be banned.
Under an FCA rules revamp companies will instead get three days to find a resolution, with the aim being to fix disputes the first time around.

Companies are to be barred from charging clients premium rates when they call up to complain.

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If a complaint is resolved during the new three-day period, firms will be required to send their customers a simpler, template message. This will inform the complainant of their right to take their complaint to the Financial Ombudsman Service.

The FCA said in a statement this morning: “Under the new rules, financial services firms will have longer to resolve complaints less formally. The increased time will allow for better and easier resolution for a greater number of complaints, benefiting both consumers and firms.

“The FCA also expects this change to result in fewer consumers having to take their complaints further.”

Consumers will also have access to more data on complaints made to financial services companies.

Firms will be required to report all complaints to the FCA, which will publish the data and provide additional context to allow consumers to better compare firms. Until now firms have been only required to report complaints to the FCA that take longer than a day to resolve.

Christopher Woolard, director of strategy and competition at the FCA, said the rules would mean consumers and firms benefit from better complaint handling.

He said: “Our rules will help deliver the quicker, easier and fairer resolution to complaints that consumers want. Getting this right is also vital for firms.

“A properly resolved complaint can keep a customer happy, and protect the firm’s reputation. But, more than that, effective complaints handling systems can act as an early warning system for firms.”