Financial Ombudsman Service (FOS) Expects to Resolve 270,000 Cases in 2025/26
The Financial Ombudsman Service (FOS) has announced ambitious plans to resolve 270,000 cases in the upcoming financial year, marking a significant 20% increase from the previous year. Despite facing a surge in complaints, particularly in motor finance commission cases, the FOS remains committed to addressing consumer grievances.
With nearly half of the current stock of 190,000 cases related to motor finance commission, the FOS acknowledges the challenges posed by exceptional demand and the need for reform in mass redress events. Collaborating with HM Treasury and the Financial Conduct Authority (FCA), the FOS is embarking on a transformative journey to modernize its services and the redress system.
Jenny Simmonds, Interim CEO of FOS, emphasized the importance of providing timely resolutions to customers waiting for answers. The organization is increasing its capacity to handle cases efficiently and is implementing measures to enhance its dispute resolution service through improved processes and digital tools.
In a bid to support businesses and consumers, FOS has announced a reduction in case fees from £650 to £475 for professionally represented complaints with no change in outcome. The organization forecasts a 20% year-on-year increase in complaints for the upcoming financial year, covering various sectors such as bank accounts, credit cards, and insurance.
James Dipple-Johnstone, Interim Chief Ombudsman, highlighted the decision to maintain current case fee levels and levies, providing a significant cost-saving to industry players. FOS will continue to collaborate with businesses to address complaints effectively and prevent future grievances.
Additionally, the FCA has confirmed an increase in the maximum amount FOS can require a business to pay when upholding a complaint, reflecting adjustments to keep pace with inflation. The new award limit for complaints from April 1, 2025, will be set at £445,000 for acts or omissions occurring after April 1, 2019.
The FOS’s proactive approach to addressing consumer complaints and improving its services underscores its commitment to delivering fair and efficient outcomes for all stakeholders involved.
