Stand up and complain
In difficult economic times it is important for individuals to stand up and fight for their rights. Many of us complain about shoddy products and services but often shy away from taking action where it matters to get some form of remedy from those who...
In difficult economic times it is important for individuals to stand up and fight for their rights. Many of us complain about shoddy products and services but often shy away from taking action where it matters to get some form of remedy from those who short change us.
In the last several months many have heard stories of how some unsophisticated investors have suddenly found out that, by following the advice of their financial advisers, they have ended up with a serious erosion of their savings. And yet many disgruntled consumers prefer to moan in private rather than take action. They may go to their local MP who is usually very sympathetic, but may not have the time to investigate such complaints thoroughly.
Investors who claim that they have been sold an unsuitable financial product often argue that such advice was given to them verbally with no witnesses present. They conclude that the financial services regulators will therefore rule against them. They believe such a conclusion would amount to adding insult to injury. Others fear to take action because the money invested on the advice of some unscrupulous adviser, motivated by the commission he pockets, was in fact "undeclared" money and therefore they are hardly going to reveal this to any investigating regulator.
These complaints go beyond the provision of financial services. Mobile phone companies are often as aggressive in pushing their products as their counterparts in the financial services industries.
In the UK consumers are being urged to stand up and complain. So why should the Maltese not do the same? Emma Parker of the Financial Ombudsman Service of the UK said: "We uphold a third of cases brought by consumers against financial services companies, and the ombudsman's decision is binding".
In Malta the financial ombudsman function is entrusted to the Malta Financial Services Authority. I have always known this regulator to take its responsibilities to the consumers very seriously.
Making a complaint does not have to be difficult. Start with an informal way of communicating with the product or service provider - by e-mailing or calling, for instance. If the company does not react, put pen to paper and make your complaint formal.
Be sure to give all the relevant details and wait for two weeks before taking further action. An unsatisfactory reaction from the company is a good enough reason to write formally to the industry regulator or the ombudsman if a complaint falls within his remit.
The government can do much more here to protect consumers' rights. In the UK consumers can use a number of websites to help them through the maize of bureaucracy when lodging a complaint. On websites like consumerdirect.gov.uk or howtocomplain.com one can find help, sometimes even in the form of letter templates to assist consumers in the unpleasant task of seeking a solution to their problem.
With the legal costs of going to court being as high as they are, one is justified for thinking twice before resorting to the small claims tribunal. Sometimes a letter from a lawyer will get some action.
However, big companies often prove to be impenetrable fortresses for those who carry only small weapons to defend their rights. These companies often argue that they will use their enormous resources to fight every claim, lest an admission of wrong practice on their part should lead to a flood of similar claims from disgruntled customers.
While many retailers in Malta are today much more inclined to refund defective items if you show a receipt, the same cannot be said for providers of services. But your statutory rights extend to the provision of services. So in these difficult times do justice to yourself and stand up and complain. You may find that protecting your rights is after all less formidable than the David and Goliath biblical confrontation.
In the last several months many have heard stories of how some unsophisticated investors have suddenly found out that, by following the advice of their financial advisers, they have ended up with a serious erosion of their savings. And yet many disgruntled consumers prefer to moan in private rather than take action. They may go to their local MP who is usually very sympathetic, but may not have the time to investigate such complaints thoroughly.
Investors who claim that they have been sold an unsuitable financial product often argue that such advice was given to them verbally with no witnesses present. They conclude that the financial services regulators will therefore rule against them. They believe such a conclusion would amount to adding insult to injury. Others fear to take action because the money invested on the advice of some unscrupulous adviser, motivated by the commission he pockets, was in fact "undeclared" money and therefore they are hardly going to reveal this to any investigating regulator.
These complaints go beyond the provision of financial services. Mobile phone companies are often as aggressive in pushing their products as their counterparts in the financial services industries.
In the UK consumers are being urged to stand up and complain. So why should the Maltese not do the same? Emma Parker of the Financial Ombudsman Service of the UK said: "We uphold a third of cases brought by consumers against financial services companies, and the ombudsman's decision is binding".
In Malta the financial ombudsman function is entrusted to the Malta Financial Services Authority. I have always known this regulator to take its responsibilities to the consumers very seriously.
Making a complaint does not have to be difficult. Start with an informal way of communicating with the product or service provider - by e-mailing or calling, for instance. If the company does not react, put pen to paper and make your complaint formal.
Be sure to give all the relevant details and wait for two weeks before taking further action. An unsatisfactory reaction from the company is a good enough reason to write formally to the industry regulator or the ombudsman if a complaint falls within his remit.
The government can do much more here to protect consumers' rights. In the UK consumers can use a number of websites to help them through the maize of bureaucracy when lodging a complaint. On websites like consumerdirect.gov.uk or howtocomplain.com one can find help, sometimes even in the form of letter templates to assist consumers in the unpleasant task of seeking a solution to their problem.
With the legal costs of going to court being as high as they are, one is justified for thinking twice before resorting to the small claims tribunal. Sometimes a letter from a lawyer will get some action.
However, big companies often prove to be impenetrable fortresses for those who carry only small weapons to defend their rights. These companies often argue that they will use their enormous resources to fight every claim, lest an admission of wrong practice on their part should lead to a flood of similar claims from disgruntled customers.
While many retailers in Malta are today much more inclined to refund defective items if you show a receipt, the same cannot be said for providers of services. But your statutory rights extend to the provision of services. So in these difficult times do justice to yourself and stand up and complain. You may find that protecting your rights is after all less formidable than the David and Goliath biblical confrontation.