FOS Propose to Increase Fees

In December, the Financial Ombudsman Service (FOS) published its public consultation on its proposed plans and budget for 2021/22.

The consultation highlights the challenges the Ombudsman has experienced and how Covid-19 has impacted its work and plans for the next two years. It also explains how the pandemic has increased the complexity of the complaints they have received.

Given the rise in these complex complaints, which the FOS says are linked to the pressures and disruption of the pandemic, they have predicted an increased workload for 2021/2022

Analysis of these complaints has shown an increase in customer vulnerabilities, due to financial pressures, and an increase in fraud and scams.

This has led the FOS to review its resources and it has set out four proposals which, it believes, will enable them to fulfil its commitment to the consumers and businesses that rely on the service. FOS has asked for responses to the consultation and the proposals from the Financial Services Sector.

The scenarios include

  • increasing both the case fee and levy in 2021/22;
  • increasing only the levy;
  • increase only the case fee;
  • or
  • increase neither the levy nor case fee.

 

The proposed individual case fee increase would be from £650 to £750.

The consultation closes on 31st January 2021 and the FOS is due to publish the final plan and budget by 31st March 2021 following consideration of the feedback received.

You can view the full consultation paper here.

About the author

Jenny joined RWA in 2020 and previously worked for an SME broker predominantly in private motor insurance, working in the Compliance department and overseeing the Complaints function. In the last five years, Jenny has completed her Cert CII qualification along with three qualifications with the International Compliance Association (ICA) before starting her role as one of RWA’s Regional Business Managers, providing consultancy support to brokers around the UK

 

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