Taking an award of compensation after a complaint to the Financial Ombudsman prevents taking legal action

The Court of Appeal has, by reversing a lower court’s earlier decision, made it clear that in England and Wales a consumer is prevented from going to the courts for compensation if they have already accepted an offer of settlement by the Financial Ombudsman.

This applies even if the complainant states that he reserves the right to go to court when accepting the award that is suggested by the Ombudsman.  That complainant has no such right of reservation.  

Take the money and you are barred from going to court for extra.  Or “res judicata” to the legal fraternity!


Published: 03 Mar 2014

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