Review | 22 June 2016



Key issues: Failure to apply due diligence | Loan | Secondary loan provider | Determination issued by other EDR scheme






Summary of the complaint:








A loan provider provided the consumer with a loan. At the time the loan was provided, the FSP was the mortgage manager. The loan provider went into liquidation and the consumer’s loan was purchased by a secondary loan provider.


The administrator of the consumer’s estate made a complaint to CIO against the secondary loan provider.



The secondary loan provider informed CIO that the complaint was more appropriately dealt with by another company, as trustee for the loan provider, a member of the Financial Ombudsman Service (FOS).





The complaint was transferred to and opened by FOS. FOS made a determination in favour of the consumer’s estate.


We found that:




  1. As FOS had already considered the complaint in relation to the loan and issued a determination, we were unable to further assist with the complaint.

  2. This is because CIO cannot deal with a complaint where a determination has been made by another External Dispute Resolution (EDR) scheme in respect of the complaint. We are unable to review or overturn a decision made by another EDR scheme.





The complaint was referred to the Ombudsman for Determination and the position set out in the Review was affirmed by the Ombudsman. 



Review 22 June 2016