Why are Ombudsman Services' Solutions, "Broken" And Why Is The Market, "Broken?" (1)

     Dear Reader,

     We sent the following mail to the Leader of the House of Commons: 

   

To the Leader of the House of Commons:
Ombudsman Services Case 510458: Part 4 - The Full English Cover-Up (1)

1) Why Are Ombudsman Services' Solutions "Broken" And Why Is The Market, "Broken?"

Dear Mrs Leadsom,   

Once again we're told that the housing market is, "broken."

This tells us virtually nothing about who is breaking the market, why they're breaking it and why they're able to get away with breaking it.

The term, "broken" is itself broken - it explains nothing.

 

"Ombudsman quits property sector saying housing market is, "broken."

(Property Industry Eye. Feb 6, 2018 Rosalind Renshaw)

Ombudsman Services is to quit the property sector, saying it no longer wants to officiate arbitration services as “a broken solution to a broken market”.

Q. Mrs Leadsom, is it not now long overdue for The Rev Shand Smith to explain to the 80%+ property complainants why he offers a broken solution to their problems?

The service has over 8,000 member businesses – not branches – in total, with the overwhelming number being 6,500 RICS firms.

Its withdrawal leaves just two organisations offering redress to the public who have complaints against sales and lettings agents.

And, we would add, RICS "regulated" surveyors.

But there may be more to the Ombudsman Services departure than meets the eye, with a power play to come – and EYE has asked about exactly that.

For example, it could leave the coast clearer for The Property Ombudsman to become the single housing ombudsman; or be seen as a pre-emptive strike, with the organisation saying it is ceasing what it is “currently doing”.

Q. Mrs Leadsom, what it is currently doing is leaving 80%+ of its property complainants - "dissatisfied." Why wasn't there a pre-emptive strike by the government monitors of this government approved scheme when DJS Research discovered that the, "dissatisfaction" rate was 61%?

Or it could be seen as move by the RICS to become either the single industry regulator, or single ombudsman, with Propertymark known to be pursuing the role of single regulator.

Q. Mrs Leadsom, your government has spoken of evidence-based policy. The evidence shows that;   

a) The RICS refuse to enforce their own Rules and Regulations,

       b) Have encouraged the development of practices that do not work in the     
          customer's interest,
      c) Have politically influenced and engaged civil servants
          and
      d) Closely monitor OS:Property for the, "effective resolution of disputes."
      Is an 80%+ consumer dissatisfaction rate an, "effective resolution of a  dispute"          and should such an organisation be given a monopoly role as single regulator?

The model of one regulator and one Ombudsman covering both social and private sectors is the one the Government now says it wants and there is to be a consultation.

Last night, a spokesperson for Ombudsman Services confirmed our suspicions that the heavily RICS-backed Ombudsman Services expects to relaunch.

Q. Mrs Leadsom, why doesn't the RICS regulate it Members and (Un)Regulated Firms in the first place then there would be no need for its, "appointed" company, OS:Property?

The spokesperson said: “Ombudsman Services will come back into the housing and property market as quickly as we can – once we feel that action is being taken to make the system for redress less confusing and more transparent.

Q. Mrs Leadsom, this is ludicrous. This appalling organisation is blaming everyone else for its 80%+ complainant dissatisfaction rate. Where is the "transparency" thy speak of when they've failed to release an Annual report for 2017?

Q. Mrs Leadsom, why are Ombudsman Services leaving the ADR market to then come back into as sole provider with a 80%+ consumer dissatisfaction rate?

“It’s an urgent priority that this sector is sorted out as it touches every adult in Britain, from home owners to social housing tenants, private renters and buyers.”

Q Mrs Leadsom, surely it is an even more urgent priority that the RICS explain why they can't regulate their own members and why they believe that an 80%+ complainant dissatisfaction rate is, "effective?"

Headed by chief ombudsman Lewis Shand Smith, Ombudsman Services says it will start work as soon as possible with consumers, charities, property professionals  and others to help develop a new model for redress in housing “to rebalance power in the sector”.

Q. Mrs Leadsom, why has the Rev Shand Smith completely forgotten the conference organised by Chris Gill and Naomi Creutzfeldt which criticised ombudsman schemes such as his for their poor decisions and lack of transparency and accountability?Q. Mrs Leadsom, why did the Rev Shand Smith refuse to sit in the same room as the ombudsman watchers? 

Q. Mrs Leadsom, Lewis Shand Smith has said that his current model is, "superb" and yet gives an 80%+ complainant dissatisfaction rate. Power surely would be re-balanced if both he and the RICS were removed from it?

In a statement, it says it will put its report around the creation of a single housing ombudsman to the Ministry for Housing, Communities and Local Government this spring.
Meanwhile, Ombudsman Services says it will begin a managed withdrawal from the schemes it runs for agents, surveyors and managing agents. It plans to exit altogether by August 6.

The organisation made clear its support for the plans Secretary of State Sajid Javid has outlined for an effective regulator supported by a single ombudsman across the whole housing sector.

Q. Mrs Leadsom, we sent hundreds of emails to Sajid Javid when he was Business Secretary asking why the RICS couldn't regulate its own Members and (Un)Regulated Firms but didn't get a reply. Is that because a politically influenced and engaged civil servant had intercepted our correspondence or that evidence based policy was too radical for the then Business Secretary?

Ombudsman Services said it wants to understand from the public about the service they want, and to understand key ‘pain points’ for renters and buyers.

Q. Mrs Leadsom, surely the public want a fair, independent, accountable and transparent system of redress - something that doesn't exist at the present time?

Shand Smith said: “Redress in the housing sector is a really confusing picture for all involved. The patchwork of ADR [alternative dispute resolution] and ombudsman schemes is a mystery to consumers and therefore is incredibly difficult for them to navigate.

Q. Mrs Leadsom, non of the above explains why a dissatisfaction rate of 80%+ of property complainants is acceptable. Isn't the real mystery the one where he and his organisation have been able to get away with it for so long?

       “We are ceasing what we’re currently doing in the housing sector in a professional         and planned way, because we believe it is not adding value.

“Rather than continue to offer a broken solution to a broken market, we are stepping away to listen to what consumers actually want.

Q. Mrs Leadsom, DJS Research attempted to tell The Rev Shand Smith his solution was broken but clearly he didn't listen. Why, because if he had listened to their recommendations then it wouldn't have been broken would it?

Like the bosses at Carillion, this would appear to be a man also in total denial - someone who avoids looking at the evidence.

“There are models in other sectors that work far better – for instance the single ombudsman model in financial services and the scheme we operate in energy which handles around 40,000 complaints every year.

“We fully support Sajid Javid regarding the need for a single ombudsman for housing – only then will the housing sector be able to restore trust and ensure that consumers get a much better standard of service.

Q. Mrs Leadsom, what trust can consumers have in a service that results in an 80%+ dissatisfaction rate?

“Housing is one of the biggest issues we face as a nation, and a fair, balanced, redress system will make sure that it serves the whole of society. We want to work to develop a model that works for everyone.”

Q. Mrs Leadsom, The Rev Shand Smith's superb model worked really well for his fee-paying members as 80%+ would testify - why isn't it working for complainants?

      Q. Mrs Leadsom, doesn't the power in The Rev Shand Smith's sector lie with RICS
      the regulator who doesn't regulate and their Members and doesn't it need to be
      rebalanced in favour of the complainant?

 More details will be announced next month.

Ombudsman Services: Property is one of three approved redress schemes for the private residential property sector. The oldest is the Property Ombudsman, which is the largest and can trace its roots back to the early nineties, and is the de facto organisation for almost all NAEA and ARLA members.
The third, and newest, is the Property Redress Scheme, launched when the Government said it wanted more choice in the market when it made redress compulsory for letting agents.
It has since done what can only be described as a U-turn and of course the PRS cannot be ruled out as a contender for housing’s single ombudsman.
Ombudsman Services: Property came into being after TPO, and not only provides redress services for the RICS but members of NALS, ARMA and UKALA, as well as some individual firms.
Isobel Thomson, CEO of NALS, said: “In light of the Government’s announcement to consult on a single housing ombudsman providing ease of access for property related consumer complaints, NALS understands the decision Ombudsman Services: Property has taken to withdraw from the current redress set-up and look to the future.

“Ombudsman Services have performed well for NALS firms, providing an excellent service at the most cost-effective rate of membership of any of the existing schemes. We look forward to engaging in discussions with them as they evolve their offering to suit a new consumer protection regime.

Q. Mrs Leadsom, an 80%+ property complainant dissatisfaction rate would suggest that redress is overwhelmingly stacked in favour of the firms that consumers are complaining about. It's a rigged market isn't it - otherwise wouldn't things would be very different?

 

“Practical arrangements for NALS firms will follow from both Ombudsman Services and NALS.”

Katrine Sporle, ombudsman at TPO, said: “I am sorry to be losing our close working relationship with Ombudsman Services to raise standards in the property industry.

Q. Mrs Leadsom, Ombudsman Services have spectacularly failed to raise the standards of their fee-paying Members. They can't even get them to keep an up-to-date Case File. Isn't this totally inept?

 

“However, I look forward to continued collaborative thinking with Lewis on the wider issues of the role and purpose of the Ombudsman going forward.”
Property is just one area for which Ombudsman Services provides redress. The others are communications and energy.
Commentators say that an entirely new body could become the single housing ombudsman. Established bodies that could be front-runners include the TPO.

In social housing, there is the Housing Ombudsman Scheme, and the Local Government and Social Care Ombudsman, both of which can consider complaints from local authority tenants, plus the Regulator for Social Housing.

Q. Mrs Leadsom, why hasn't Ombudsman Services produced an Annual Report for 2017 where is the transparency and accountability that The Rev Shand Smith and talks about and how do you think they will account for an 80%+ complainant dissatisfaction rate?

Yours sincerely,

Steve Gilbert - Workstock Number - 510458.

The Ombudsmans61percent Campaign is at www.blogger.com and www.facebok.com Ombudsmans Sixtyone-Percent