I am informed by the FSPO that more than 80% of complaints that closed in 2022 were closed within 12 months of the complaint being made. Complaints were mainly closed through the Registration and Assessment, or Dispute Resolution (mediation) processes.
• For all complaints that closed in 2022, including both tracker mortgage complaints and other complaints, the average time from receipt of complaint to closure was 10 months.
• For non-tracker mortgage complaints that closed in 2022, the average time from receipt to closure was 8 months.
• For tracker mortgage complaints that closed in 2022, the average time from receipt to closure has been significantly longer. There are a number of factors that contribute to this, such as periods during which the complaints were on hold. A large number of tracker mortgages complaint investigations were put on hold pending the outcome of the Central Bank of Ireland’s Tracker Mortgage Examination (TME). This is because the view was taken that the best way of ensuring that the FSPO had all the necessary information to deal with these complaints, was to await the outcome of the TME and confirmation of the impact, if any, of the Examination on such mortgage loan accounts.
There have also been statutory appeals challenging the decisions of the FSPO relevant to tracker mortgage interest rate complaints, which have also resulted in some complaints being put on hold, pending the outcome of such court challenges.
In addition, tracker mortgage complaints are much less likely to be resolved through mediation than other complaints. The average time to closure for tracker mortgage complaints which closed in 2022, was 3 years and 4 months.
While the large majority of all complaints (80%) resolved in 2022 did so within 12 months, mainly during the Registration, Assessment, and Dispute Resolution (mediation) processes, approximately 18% of complaints closed in 2022 had been referred for a formal jurisdictional review or for formal investigation and adjudication. These formal processes take significantly longer as set out below.
The formal investigation and adjudication process is a detailed, fair and impartial process carried out in accordance with fair procedures. The FSPO calls for certain questions to be answered by a respondent provider and requests certain relevant documents and audio evidence.
The FSPO’s established procedures for the formal investigation of complaints, ensure that both the complainant and the provider receive a copy of all information submitted by both parties and held on file, and that they are given every reasonable opportunity to offer comments and observations on the contents of such evidence.
The parties to a complaint may wish to continue to make submissions over a period of time, which will impact on the overall time taken to complete the process; when the parties believe that they have additional information to offer regarding the merits of the complaint, this process is facilitated by the FSPO.
When all of the evidence has been gathered, and the parties’ submissions are concluded, the FSPO considers the evidence to determine whether any material conflicts of fact can be resolved by reference to the documentary or audio evidence available or whether, alternatively, an oral hearing is required.
Thereafter, a preliminary decision is issued. The parties may make submissions in relation to the preliminary decision. Such submissions are shared with the other party who may respond to them, which may give rise to several submissions being exchanged. All submissions and evidence received are then considered prior to the legally binding decision being issued to the parties.
Once a legally binding decision is issued, that decision is binding upon the parties, subject only to a statutory appeal to the High Court, within a period of 35 days, pursuant to Section 64 of the Act. The financial service provider or pension provider must implement any direction made by the Ombudsman in the legally binding decision.
The nature of these formal processes is such that they take a considerable amount of time. Excluding tracker mortgage complaints, the average time from referral to conclusion of the formal investigation and adjudication process was 22 months for complaints that closed in 2022.
For tracker mortgage complaints, the formal process has taken much longer, on average three and a half years for those that closed in 2022, reflecting the factors referred to above, including periods of time on hold. This is in addition to the time spent in registration, assessment and mediation (c. 6 months for non-tracker complaints and c. 10 months for tracker complaints).
The FSPO maintains a strong focus on reviewing its processes, systems and resourcing, to identify improvements that can be made to its timelines and to deliver fairness and efficiency for all its customers
