If a financial firm upholds your complaint and makes a compensation offer, it is worth taking some time to understand what has been offered and why before deciding whether to accept. This guide explains the main things to consider.
General information only. Not legal or financial advice. AskFin is not a claims management company. For guidance on a specific offer, consult the FOS or Citizens Advice.
What a compensation offer typically includes
A compensation offer from a financial firm will typically include an explanation of what the firm has decided, what redress is being offered and how it has been calculated. It may include a refund of specific fees or charges, interest on those amounts, a payment for distress and inconvenience, or a combination.
How to review an offer
Read the firm's explanation carefully. Does it address all of your complaint? Is the calculation clear and does it make sense? If you do not understand how the amount was calculated, write back and ask the firm to explain.
What to do if you think the offer is too low
You do not have to accept an offer you believe is inadequate. If you reject the offer and are not satisfied with the firm's final response, you can refer the complaint to the Financial Ombudsman Service for free. The FOS will make an independent assessment.
You can also accept part of a firm's response and refer the remainder to the FOS in some circumstances. The FOS website explains when this is possible.
Time limits for accepting or rejecting offers
Check whether the firm has placed a time limit on the offer. Also check FOS time limits — you generally have six months from the firm's final response to refer to the FOS. Do not let time limits pass without making a decision.
If you used a claims management company
If a CMC is handling your complaint, any compensation will typically be paid through them and their fee deducted before you receive the remainder. Check your fee agreement to understand exactly how much you will receive net of their charge.
Getting free help reviewing an offer
Citizens Advice can help you understand whether a compensation offer seems reasonable and what your options are if you disagree with it. The FOS itself provides guidance on its website about how it assesses whether offers are fair.
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AskFin is not a claims management company. This guide is general educational information only.