Financial Redress Guidance 

Remedies and Financial Redress Guidance

July 2023

Introduction

JMHA is committed to providing exceptional levels of service to our customers and communities. However, we do recognise that from time to time, things may not always run smoothly. It is important that when there is a problem, we do everything we can to put things right and use any learning to continually improve our services.

Where there is evidence of poor service and an apology alone is not sufficient, it may be appropriate to consider an additional form of redress. Redress may take the form of a financial payment or alternative gesture of goodwill.

JMHA colleagues are empowered to determine whether a compensation payment or gesture of goodwill is appropriate and will treat each case based on its individual merits and by using this guidance. At all times we will consider customers individual circumstances, as well as the severity, impact, and inconvenience suffered as a result of any poor service.

The purpose of this guidance is to ensure that our approach to redress is fair, consistent, and considers our regulatory obligations and the guidance provided by the Housing Ombudsman.

Types of Compensation

Our approach to compensation can be set out into the following categories:

Statutory Compensation

• Right to Repair (introduced as part of the Citizens Charter Scheme 1st April 1994)
• Right to Compensation for improvements (introduced as part of the Citizens Charter Scheme 1st April 1994)
• Home Loss and Disturbance Payments (under the terms of the Land Compensation Act 1973 as amended)

Quantifiable loss payments

Reimbursement for damage to personal belongings, increased heating costs, sourcing and payment of alternative accommodation, cost of redecoration, take away meals, cleaning and carrying out repairs where JMHA has failed to meet its service standards. Note: Customers may be required to provide evidence of costs incurred.

Discretionary Compensation

Discretionary compensation may be awarded where it is identified that there have been delays in providing a service such as a repair, where our services are not in line with our published service standards, if we have failed to adhere to our targets and/or response times, or if we have failed to effectively respond to a customer enquiry or complaint.

Compensation payments ordered by the Housing Ombudsman

In cases where a complaint is referred to the Ombudsman, and it is identified that there has been maladministration or service failure on the part of JMHA, the Ombudsman may order a financial or non-financial form of compensation.

Formulating corrective action

This guidance should be used in conjunction with the JMHA Complaint Resolution Policy and the Housing Ombudsman’s Complaint Handling Code. During the process of considering an appropriate remedy, we may also consult the Housing Ombudsman’s Guidance on Remedies, Compensation and gestures of goodwill may be awarded in response to customer dissatisfaction, disturbance, or inconvenience suffered as part of a formal or informal complaint, and/or where it is deemed necessary to acknowledge poor service. It is not a pre-requisite that a formal or informal complaint must be made to award compensation.

Examples of where compensation may be used to supplement other corrective action are (not an exhaustive list):

• Where there has been an unreasonable delay
• Inaccurate or inadequate advice, explanation or information is provided
• JMHAs policy or procedure was not followed correctly without good reason
• There was a factual or legal error that impacted on the outcome for the customer
• Where there is evidence of unprofessional behaviour by colleagues or representatives of JMHA
• Where legislation, such as the Right to Repair requires it, types of remedy in line with our Complaint Resolution policy, it is our ambition to resolve customer concerns quickly, effectively, and where possible, informally. To enable resolutions to take place in this way, our colleagues have the autonomy to utilise a variety of remedies.

Non-Financial Remedies

It is not always necessary or appropriate to issue a financial payment to resolve a customer issue or complaint. Sometimes, it may be as simple as offering the customer an apology, escalating a delayed repair, or providing assurance that our policies and processes will be improved. Other gestures of goodwill may include do-it-yourself decoration vouchers, flowers, or a personalised card.

Fixed goodwill payments

Regrettably, there may be occasions whereby a pre-arranged appointment may not be attended by an JMHA representative, or a contract partner. If as part of our investigations into a formal or informal complaint it is identified that an appointment has been missed i.e. The appointment is not attended at the pre-agreed time or is rescheduled without providing at least a reasonable excuse why they can’t attend to the customer, a possible fixed compensation payment of £10 (ten pounds) may be awarded.

Payments will not be made where:

• Access has been refused by the customer
• The customer was not present and so could not provide access
• The customer has rejected the fixed payment and wishes to escalate the informal complaint and proceed to Stage 1 of our Complaint Resolution Policy

Discretionary goodwill payments

Where poor service and/or customer detriment is identified during the informal complaint resolution process, our Customer Escalations team may offer a discretionary goodwill payment of up to £50 (fifty pounds).

Poor complaint handling where we have failed to adhere to our Complaint Resolution policy e.g. timeframes set out in our policy, poor communication, a failure to respond to correspondence etc, a compensation amount of up to £100 may be awarded.

Determining compensation as part of a formal complaint

The following guidance is used by JMHAs Customer Resolution team when evaluating whether a compensation payment should be made to the customer as part of the resolution to a complaint (at Stage One).

Where service failures occur which cause a minimal impact to the customer, an amount of between £50-£150 will be considered.

Minimal impact should be considered as:

• Short delays in the completion of a repair or resolving the cause of complaint
• Repairs remain outstanding for a short term or period of time
• Repeated failures to reply to correspondence or return phone calls
• Failure to meet service standards for actions and responses but where the failure had no significant impact
• Contradictory or confusing information is provided to the customer, but which did not cause a significant impact on the customer or service delivery
• Short term is defined as between 1 day and up to 3 months Where service failure causes a medium impact to the customer, an amount of between £150 - £500 will be considered.

Medium impact should be considered as:

• Medium term delays in the completion of a repair or resolving the cause of complaint
• Misdirection or misinformation such as giving contradictory, inadequate or in correct information about a customer’s rights (for example in relation to providing temporary alternative accommodation, mutual exchanges.
• Poor communication and a failure to keep the customer informed causing the customer to repeatedly chase for updates
• Failure over a considerable period of time to act in accordance with a policy – for example to address repairs; to respond to antisocial behaviour; to make adequate adjustments

Medium term is defined as between 3 – 6 months:

Service failures causing a high impact on the customer, an amount above £500 will be considered.

High impact should be considered as:

• There are long-term delays in the completion of a repair or resolving the cause of complaint
• The customer endures a long stay in temporary accommodation due to the mishandling of repairs or failure to resolve the complaint to the complainant’s satisfaction
• Mishandling or partiality in an antisocial behaviour case leading to exacerbation of tenant relations
• Significant breakdown in communication with the customer
• Long term is defined as 6 months or more In addition to the above guidelines, when determining the appropriate level of compensation, we will always consider the severity of any service failure, the effectiveness of our response, any action taken, as well as the specific customers circumstances and/or vulnerabilities.

Compensation payment exclusion

We may deem that compensation is not appropriate under the following circumstances (not an exhaustive list):

• Where service failure occurs due to external factors which are outside of JMHA’s control
• Where the actions of the customer have prevented or delayed the completion of repairs and/or other activity
• Where customers have failed to report issues in a timely manner, or where it is not possible for JMHA to have been aware of an issue
• Where poor quality home improvements or repairs conducted by a non-approved contractor have caused an issue
• Where it is found that wilful damage, misuse, and/or negligence on the part of a customer has attributed to the issue
• Where the customer should make a claim against their content’s insurance. This will usually be appropriate where JMHA or our approved contractors are deemed not at fault
• Where it is deemed more appropriate for the customer to make a claim against our insurance policy for reimbursement costs or loss/damage to belongings above £500 in value
• Where an issue has arisen due to the impact of a pandemic
• Nuisance caused by neighbours, or other anti-social behaviour which is outside the control of JMHA
• Where re-decoration is required following the undertaking of day-to-day repairs, unless to correct damage caused by JMHA or one of our contractors, and we agree not to have our contractor correct this
• The customer has experienced a loss of earnings
• There has been a breach of the terms of the tenancy agreement, or our obligations set out in our Repairs handbook

Processing compensation payments

No full or partial refunds will be offered for rent in addition to the compensation detailed in this guidance. Where rent refunds are offered, this guidance does not apply.

When compensation is awarded, the compensation amount will be confirmed in writing.

Customers will be required to confirm acceptance.

Where compensation is to be a financial payment, payment will be made via BACS transfer to the complainants nominated bank account.

JMHA reserves the right to deduct any agreed compensation and/or goodwill gesture payment from rent arrears (or other monies owed) to JMHA. Any compensation and/or goodwill gesture balance remaining after the arrears are cleared will be paid directly to the complainant.