Can a scheme member claim legal fees or reimbursement of other losses if the complaint is unsuccessful?

No. Under the FDRS scheme rules and legislation scheme members cannot claim back legal fees or any other losses incurred as a result of their customers making complaints through the reserve scheme, nor can they pass any of these costs on to the customer. One of the core features of the dispute resolution schemes is that their services are provided free of charge to consumers.

The provisions in the legislation that require the dispute resolution process to be free of charge to consumers are Rules 4, 8, 14 and 44 of the Financial Service Providers (Dispute Resolution) Rules 2010.  Scheme member fees and complaint charges are set out in the Financial Service Providers (Dispute Resolution—Fees) Rules 2010.