CeMAP FRE2 Complaints, the FOS, the FSCS & Conduct Risk question: complaint to the Financial Ombudsman Service

CeMAP FRE2Complaints, the FOS, the FSCS & Conduct Risk

Hartwell Animal Trust, a charity with annual income of £7.2m, is unhappy with how its bank handled a business loan. The bank rejects its complaint. Can the charity take the complaint to the Financial Ombudsman Service?

A Yes, every charity is an eligible complainant whatever its annual income
B Yes, because its income is below the £10m limit that applies to charities
C No, because complaints about business lending fall outside the FOS's remit
D No, because a charity is eligible only if its annual income is under £6.5m

Show the answer and explanation

Answer: D. No, because a charity is eligible only if its annual income is under £6.5m

DISP 2.7.3R makes a charity an eligible complainant only if its annual income is less than £6.5m at the time it refers the complaint. At £7.2m, Hartwell is outside the FOS's reach, although it can still pursue the bank through the courts. Business lending is not excluded as such: micro-enterprises and small businesses can complain about it.

Common mistake

Assuming every charity can use the FOS.

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Original practice material mapped to the published CeMAP FRE2 learning outcomes. Independent, not endorsed by Walbrook (formerly LIBF). Verify figures and rules against current guidance before relying on them.