Can a bank take legal action against a client before the Ombudsman decision on a complaint

[Discontented]

Hi

 

My question is I've referred a complaint to the Financial Ombudsman, my bank has been notified of the complaint and the fact that it has been sent to the Ombudsman; however they've now handed me over to a debt collection agency (which the bank owns) to take legal action against me for the amount outstanding and are now escalating their bank charges even further.

 

Can the bank do this wihout the Ombudsman giving a final ruling?.

 

Many thanks for your help

[AuntieP]

The banks are required to tell you in their "final response" that you make take the matter to the FOS

Taking legal action in the knowledge that you have used this option would seem unreasonable

Why not write to FOS asking then to deal with your case immediately in view of this situation, or just ask them whether the bank is within its rights to do this. Perhaps ask them to tell the bank to suspend action whilst FOS considers the case.

[Discontented]

Many thanks for the advice. I received a letter from the fos this morning specifically asking whether the bank was threatening legal action which I've replied to.

[Airwolf]

In answer to your question

 

"Can a bank take legal action against a client before the Ombudsman decision on a complaint"

 

Whilst the Financial Ombudsman Service can ask "the bank" to cease or delay litigation, the Financial Ombudsman Service does not have any legislative or regulatory powers to force "the bank" to do so. However, if a case is commenced whilst a decision is pending, I would suggest informing the court who may delay proceedings until such a time an Ombudsman has reached a decision