HMRC internal manual Complaint Handling Guidance

Purpose
The purpose of this update is to clarify when a customer’s contact should be considered a complaint under the financial redress process. This clarification aims to ensure that customers who are seeking financial redress for a mistake made by the company have previously expressed dissatisfaction about the service and given the relevant business area an opportunity to resolve it, but were not satisfied with the outcome.

Effects on Industry
This update is expected to have a significant impact on the industry, particularly in terms of cost claims. By clarifying when a customer’s contact should be considered a complaint, companies can better defend against cost claims from customers or agents who have bypassed the first point of contact and not given them the opportunity to put matters right. This will likely lead to reduced costs for companies in defending such claims.

Relevant Stakeholders
The stakeholders affected by this update include businesses, consumers, and specific industries involved in financial redress processes. Businesses will need to adapt their processes to ensure that they are following the new guidelines, while consumers will benefit from a clearer understanding of when their contact will be considered a complaint. Industries involved in financial redress, such as banking and insurance, will also need to take note of this update.

Next Steps
To comply with this update, businesses should review their processes for handling customer contacts and ensure that they are following the new guidelines. This may involve revising policies and procedures for handling complaints and providing financial redress. Companies should also communicate these changes to their customers and staff to ensure a smooth transition.

Any Other Relevant Information
It is worth noting that this update is part of a larger effort to clarify and simplify processes related to financial redress. As such, businesses may want to keep an eye on future updates for additional guidance on handling customer contacts and providing financial redress.