IRHP FAQs - Financial Conduct Authority

Interest rate hedging product review - FAQs

In addition to the information on the review and redress determination process, and on consequential loss claims, frequently asked questions have been grouped by topics below. Information on the progress of the review is updated on a monthly basis. Please browse through these questions to find out more information about the IRHP review scheme.

If your business is in financial difficulty, consult this page for information on how this affects the review of your interest rate hedging product.

If your question is not answered here, please do not hesitate to contact us.  

Complaints/Financial Ombudsman Service

Q1: Do I need to complain to my bank?

Answer:

It depends on what type of product you purchased and whether you are classed as a ‘non-sophisticated’ customer.

If you are a ‘non-sophisticated’ customer that purchased any of the other IRHPs your bank will contact you, and you will need to respond accordingly. If you are a ‘non-sophisticated’ customer and you have been sold a cap then you need to complain to your bank to be included in the IRHP review.

Sales to ‘sophisticated’ customers fall outside of the scope of this review. If you are classified as a ‘sophisticated’ customer and you are not satisfied with your sale then you need to complain to your bank. See questions 1-5 under category Sophisticated / Non-sophisticated customers for further information on the definition of a ‘sophisticated’ customer.

Q2: If I am not satisfied with the redress, what are my options?

Answer:

If you are not satisfied with the redress offered by your bank, you may be eligible to refer your complaint to the Financial Ombudsman Service.

If you are not eligible for the Financial Ombudsman or are not satisfied with the outcome then you may wish to consider seeking legal advice.

Q3: Am I eligible to refer my complaint to the Financial Ombudsman Service?

Answer:

The Financial Ombudsman Service can currently consider complaints from any business that meets the micro-enterprise definition at the time at which it complains. A micro-enterprise is an entity that has fewer than 10 employees and an annual turnover or balance sheet that does not exceed €2 million.

If you are not eligible to refer your case to the Financial Ombudsman you may be able to seek redress through the courts.

Q4: I have already made a complaint to my bank/ Financial Ombudsman Service, am I still included in this review?

Answer:

Yes, provided you fall within the scope of the review. See questions 1-3 under category Scope of the review.

Q5: Will a specific scheme for dealing with customer complaints be created?

Answer:

No. We are confident that the existing eligibility for making claims through the Financial Ombudsman will allow the most vulnerable consumers to complain if they are not satisfied with the outcome of this review of their sale. Where larger businesses are unsatisfied with the outcome of the review, they may be able to take action through the courts.

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