More Good News for Lenders
The Court of Appeal has recently given judgment in a case which will be of interest to lenders and finance companies alike in terms of the interplay between decisions made by the Financial Ombudsman Service ("FOS") and the jurisdiction of the Courts.
In Clark -v- In Focus Asset Management, the lower Court had determined that where a Claimant has made a complaint to the FOS and accepted an award up to the maximum award limit, any shortfall on the balance of the total claim could then be recovered through the Court. In overturning that decision, the Court of Appeal said that complainants to the FOS should not be in any different position from other Claimants who, having obtained a decision through a tribunal for dispute resolution, cannot then litigate the same issue again in the Courts. As such, where a Claimant accepts an award from the FOS, they will not be able to take further proceedings in Court to claim additional compensation arising on the same facts.
In other words, where an FOS award in respect of a particular case is described as "full and final", it will be so, providing greater certainty for lenders and finance providers.
Posted on: 05/03/2014
This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.
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