Ombudsman schemes The purpose of an ombudsman scheme is to provide independent consideration of complaints that cannot be resolved between the service provider and the customer. The terms of reference and powers of the various schemes differ widely. Most provide for damages to be payable in the event that a case is proven and where the customer has suffered 'pecuniary loss, damage or inconvenience'. Some companies offer arbitration as a means of resolving complaints. An independent arbitrator is asked to make a decision and the parties agree beforehand that this will be binding.
Any complainant can also bring a case to a civil court for resolution.
Disputes This term specifically relates to certain issues which arise between building societies and their customers. The Building Societies Act 1986 defines 'complaints' and 'disputes'. A dispute is any matter of contention between the society and its customer in terms of the membership relationship.