Expats often use banks and financial service providers in one of the many offshore centres, but if you have a problem and wish to complain yet are thousands of miles away, what are your options?

While ranting and raving down the telephone may initially seem a good way of venting your frustration, in truth there's little the call centre staff can do apart from make your feelings known to senior staff and then possibly put you in the 'Cold Call' folder as a form of revenge for your tirade against them (believe me it happens!). As an expatriate you have the added problem of time zones to contend with and overseas postal services. So, if you have a complaint against your bank, investment provider or financial adviser, what should you do? Write a letter? But who to and what do you say? Follow these steps and you will have a better chance of getting your problem resolved.

1. Make a complaint directly to the service provider

Many people think it more effective to write directly to the regulatory authority to complain. This is incorrect as the regulator's authority can really only kick in once you have tried to get a resolution with the provider. Obviously there are certain unusual circumstances such as bankruptcy, collapse or fraud when it is advisable to write to both regulator and provider at the same time. But in most cases you first need to go through the complaint/resolution process with the provider. The relevant steps should be on the company website. If not, ask.

2. Write to the correct person and/or department

Another misconception is to write directly to the chief executive. He or she will rarely open their own post and so it will simply get forwarded to the customer services department to deal with, which slows down the whole process and leaves you unable to track your complaint. Wherever possible write to the head of customer services. You will find this information on the provider's website. If there is no name listed (just a department) then phone and ask for a name. This will help you track your complaint much more effectively. Depending on the severity of your complaint, it is also worthwhile c.c.ing a copy to the chief executive.

3. Post or Email?

We advise both. Email ensures you voice your complaint immediately and leaves an electronic email trail which can be used to great effect if your written correspondence gets lost or delayed. You can also use your email to back up dates and information provided.

4. What should I write?

This is often the most difficult part for most people as it is easy to get caught up in the emotion and indignation of your perceived injustice. So, first of all take a deep breath and ask yourself why you believe you have been mistreated and to what extent, if any, did you play a part in the problem? For example, just because you feel your bank charges are excessive doesn't necessarily mean they are unfair. But if you believed that your bank has failed to notify you of better ways to manage your account, or perhaps they have applied credits and debits in a way which causes unforeseen charges to you, then you may have cause for complaint. The key is to write factually about your complaint quoting dates and examples of how you have been treated unfairly, as well as providing details of any financial loss. A four page rant about rude staff and phone calls without giving any dates or evidence is not going to get you very far, as it is more difficult for any customer service department to get to the bottom of your complaint.

4. How long will it take to answer my complaint?

Regulators require licensed companies to have procedures in place for the processing and handling of complaints. Companies are expected to acknowledge and deal with any complaints in a “timely manner”. This generally means once you have received an initial acknowledgement of your written complaint you can expect to get a final response within 12 weeks. Your initial acknowledgement letter should state how long they expect to take in order to investigate your complaint and respond, but if this detail has been omitted, you should ask and get a written confirmation. Timings for complaint handling may also be listed on the website. If you do not get a response within the stated time then you should send a final letter to the chief executive pointing out that you have not received a response within the stated time and that you intend to write to the authorities if a response is not received forthwith.

5. What happens if I feel my complaint has not been dealt with satisfactorily?

If you are still aggrieved, have exhausted all avenues with the company concerned and followed to the letter the company’s complaints procedure, then you are entitled to seek the support of the regulatory authority. Again, you should find information on the appropriate regulatory authority on the company's website, but generally speaking it will be the Financial Services Authority where the company or your account is based, or where you received the service. So if you have a complaint against your bank based in the Isle of Man then you should write to the Isle of Man Financial Supervision Commission.

6. What will the Financial Services Commission do?

Another misconception is the role of the Financial Services Commission. Their job is not to arbitrate between complainant and company, but to ensure that the licensed company is being managed in a fit and proper manner and to ensure that the company has complied with all regulatory requirements. If you can prove that the company has breached its regulatory requirements, then the Commission will be able to take things further on your behalf. But if you cannot prove a regulatory breach then writing to the Commission will at best alert them to the fact that there is a certain level of dissatisfaction, which they can use as a whip to ensure the company behaves better but, unfortunately, will not help your case personally. If you do plan to write to the regulatory authority, be sure to follow the exact procedure as described on their website.

7. What is the Financial Services Ombudsman Scheme?

First of all, not every financial centre operates an Ombudsman's Scheme. But those that do so offer an independent dispute resolution service for private individuals using financial service companies. You will need to check exactly what types of financial service companies are covered, as some corporate and trust service providers are excluded. In general, the Scheme is specifically for complaints where the customer has suffered a financial loss. If the complaint is upheld then the Ombudsman can direct the firm to pay money back to the customer up to a certain amount. In the case of the Isle of Man, which does operate such a Scheme, this sum can be up to £100,000.

8. What happens if none of this works?

If you have followed the above steps and nothing works and you still firmly believe you have a case, then you might consider taking the company to court and/or filing a complaint against the supervisory commission. However, due to the costs involved you must be certain you have a strong case. Alternatively, consider reducing legal costs by banding together with other disgruntled customers and launch a joint court action.

9. And finally - Move your savings to a rival provider!

Whatever the outcome, if you have gone through all of the above then your relationship with your provider may be irrevocably damaged. So what should you do? Never forget you have the power to make the ultimate protest and move your savings to a rival provider - and let's face it, it's a much cheaper option than legal action! Providers calculate it is more cost effective to retain customers than spend more cash attracting new ones. All of which tells us customer loss is taken seriously, which is why we’ve included something on this in our draft letter to help your cause.