This reflects the fact that financial products are "intangible" and can be of a very long-term nature.
Problems – for example, with a mortgage product or a whole-of-life policy – may only emerge or become apparent many years after the contract was taken out.
It said on the other hand, an important time-limit that applies to consumers bringing complaints to the ombudsman service – but not to legal action in the courts – is the requirement under the complaint- handling rules for a consumer to complain to the Fos within 6 months of the final response letter from the business concerned, as outlined above.
The letter
It is understood that Shapps has written to the chancellor following Lentz's request.
Bim Afolami, economic secretary to the Treasury, replied to Shapps as the minister responsible for this area.
In his letter, seen by FT Adviser, Afolami highlighted that Fos and the Financial Conduct Authority are independent non-governmental bodies.
Although the Treasury sets the legal framework for the regulation of financial services, it has no investigative powers of its own and cannot intervene in individual cases.
“In view of this independence I hope you will understand it would not be appropriate for me to comment on the specifics of your constituent's case,” he said.
“I understand that your constituent is dissatisfied with the way the Fos dealt with a complaint made against him and has proposed that the 15-year “long-stop” in the Limitations Act 1980 should apply to Fos complaints.”
Afolami explained that when Parliament established the Fos through the Financial Services and Markets Act 2000 it did not apply the 15-year “long-stop” to the Fos.
However, the Fos is required to comply with the rules set by the FCA on how it deals with cases, including time limits.
These rules state that the Fos cannot usually consider a complaint if the complainant refers it to the Fos more than six years after the event complained about.
“The Fos may also consider a complaint referred to it outside of the six-year period if the complainant refers the complaint to the Fos less than three years from the date when the complainant became aware, or ought to reasonably have become aware, that they had cause for complaint,” he said.
The Fos has discretion to waive these limits in exceptional circumstances, however, the rules also give firms the right to object to the Fos considering a complaint more than three years from when the complainant became aware, or ought reasonably to have become aware, that they had cause for complaint.
