Ombudsman (credit / insurance)
An independent third party tasked with amicably resolving disputes between a client and a bank, insurer or intermediary before any court action. Referral is free and the relevant ombudsman must be disclosed to the client. It is a transparency-and-recourse safeguard for the borrower.
Key points
- Independent third party accessible free of charge for any dispute between a client and a financial professional.
- Referral to the ombudsman is a prerequisite for court action in most cases.
- IOBSP brokers must mention the competent ombudsman in their contractual documents.
- Mediation suspends limitation periods for the duration of the process.
Frequently asked questions
How does mediation concretely work for a client dissatisfied with a broker?
A client who has not received satisfaction from the broker within the regulatory timeframe can refer the matter to the competent ombudsman in writing, attaching supporting documents. The ombudsman examines the file impartially and formulates a non-binding resolution proposal within a set timeframe. If both parties accept the proposal, the dispute is closed without court proceedings.
Why is it in a broker's interest to facilitate access to mediation rather than obstruct it?
Facilitating mediation is first a legal obligation: failing to mention it in contractual documents exposes the broker to a sanction. But it is also strategically advantageous: mediation is less costly and time-consuming than litigation, it preserves the firm's reputation, and an amicable resolution sometimes allows the client relationship to be maintained over the long term.
What is the difference between the AMF ombudsman and an insurer's ombudsman?
The AMF ombudsman handles disputes relating to financial instruments (securities, unit-linked life insurance). The French Insurance Federation ombudsman deals with damage or personal insurance contracts, including borrower insurance. For an IOBSP broker specializing in mortgage credit, it is generally the insurance or partner-bank ombudsman that is relevant, depending on the nature of the dispute.
In practice
A borrower disputes the brokerage fees charged after a financing failure. After an unsuccessful amicable settlement attempt with the firm, they refer the matter to the competent ombudsman. By presenting the signed fee agreement and the record of steps taken, the broker demonstrates that their service was justified and the ombudsman issues an opinion in their favor.
Official sources
- Banking ombudsman: how to refer a dispute · Service-Public.gouv.fr
- Article L519-1 of the Monetary and Financial Code · Légifrance
- Prudential supervision and resolution authority · ACPR (Banque de France)