The maximum award payable to successful complainants to the Ombudsman for Credit Institutions has been increased by 160 per cent to €100,000 (£78,740). The Ombudsman will have the power to make much higher awards to both personal and small-business complainants in cases referred on or after Friday, March 1st. The previous upper limit of €38,092 has applied since 1993.

Also from this Friday, the turnover threshold below which limited companies can avail of the scheme will be raised to €1.5 million, an increase of 18 per cent. The scheme was originally designed for personal customers only but was extended to cover small businesses in 1995. Mr Pat Delaney of the Small Firms Association welcomed the higher awards ceiling and the raising of the turnover threshold for firms.

"It is a natural progression given the way the economy is gone and we are favourably disposed towards the Ombudsman scheme," said Mr Delaney. But he said it was important to look beyond the scheme to other ways for business to deal with disputes, including setting up a small-claims court for firms.

The Ombudsman's annual report for 2001 shows that 49 per cent of the 428 complaints fully investigated in that year were upheld in the complainants' favour, while a further 10 per cent were otherwise settled. The scheme provides a means of independently resolving unresolved complaints against banks and building societies. A total of 46 financial institutions are members of the scheme and customers can use the complaints scheme free of charge. The Ombudsman's decision is binding on the institution but not on the customer who is free to pursue other courses of action.