Upheld: Account administration errors complaint against Charterhouse Claims Limited
Financial Ombudsman decision DRN-3573526 of 2022-07-28T00:00:00+00:00. Account administration errors complaint against Charterhouse Claims Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-3573526 |
|---|---|
| Decision date | 2022-07-28T00:00:00+00:00 |
| Firm | Charterhouse Claims Limited |
| Product | Other regulated product |
| Claim type | Account administration errors |
| Outcome | Upheld |
| Remedy | Refund of £273.62 paid by Mrs S on 28 September 2021, plus simple interest at 8% per annum calculated from 28 September 2021 until the date of refund. CCL to provide tax deduction certificate if required. |
Summary
Mrs S complained that Charterhouse Claims Limited charged her a fee for claims management services provided when CCL lacked FCA authorization to take on new work. CCL had received FCA restrictions in March 2021 limiting their ability to take on new claims, but proceeded to submit a claim on Mrs S's behalf in April 2021 after she signed a letter of authority. When the defendant business refused to deal with CCL due to the restrictions, Mrs S dealt directly and received a settlement, but CCL still invoiced her £273.62. The ombudsman upheld the complaint, finding that the FCA restriction required authorization to be given before March 2021, making Mrs S's April 2021 authorization invalid. CCL was ordered to refund the fee plus 8% simple interest.
The Ombudsman's reasoning
The ombudsman determined that the FCA restriction required CCL to only process claims where the letter of authority was signed before the restriction's effective date in March 2021. Since Mrs S signed her letter of authority in April 2021, this constituted new work that CCL was not authorized to undertake. The ombudsman rejected CCL's argument that Mrs S was an existing client, finding this interpretation contradicted the FCA's clear intent to wind down CCL's claims management operations. Therefore, CCL had no authority to charge a fee for work performed without authorization.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Charterhouse Claims Limited, all decisions | 8 | 12% |
| Account administration errors, all decisions | 26,544 | 25% |
| Other regulated product, all decisions | 47,449 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website