0 £0.00
This item was added to your basket
Credit Strategy homepage
LinkedIn
Twitter

Dear visitor,
You are viewing 1 of your 1 free articles


We’ve invested in our content to provide more news, analysis, features, interviews and opinions across a wide range of Credit and Financial Services. Register now to access more of the trustworthy, insightful information that’s on offer.

Register now or Login

FOS considers “rebalancing” levy and case fees in funding consultation

The Financial Ombudsman Service (FOS) has proposed shifting the ration of levy and case fees to 50:50 – from the current 85:15 as part of a consultation on how it is funded.

Share on LinkedInShare on TwittereCard

Its other key proposals include changing the number of free cases to 10 per firm, and to 50 for each group within its group account fee arrangement. It also proposes to keep six months’ income as reserves – as opposed to the current three months.

 

“We’re a public service that operates as a not‑for‑profit company – paid for by the industry we cover, yet independent and unbiased,” FOS chief executive Caroline Wayman said. “Given these dynamics, it’s not surprising that, for as long we’ve existed, our funding has generated discussion.”

 

“Our service tripled in size in response to PPI. Assuming something on that scale doesn’t happen again, we’re planning on the basis we’ll be a smaller organisation in future. So, in combination with our focus on finding efficiencies and smarter ways of working, we expect the overall cost of our service to fall.”

 

The FOS has attracted criticism from alternative lenders over the number of complaints its has received from claims management companies (CMCs) over the historical activities of high-cost, short-term lenders. Currently, each case that the FOS processes costs the lender approximately £500.

 

Complaints made to the FOS over high-cost, short-term lenders soared by 130 percent in 2018-19, according to its annual report.

 

There were nearly 40,000 new complaints brought last year about high-cost, short-term credit, up from 17,000 the previous year.

 

The Consumer Finance Association (CFA) said in a statement following the FOS’s annual report that it “continues to see many a complaint that has no foundation”.

Share on LinkedInShare on TwittereCard
Add New Comment
You must be logged in to comment. Login or Register to access enhanced features of the website.

GET THE LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

Corporate insolvencies up 30% as personal insolvencies remain low

Corporate insolvencies up 30% as personal insolvencies remain low

PwC saves 1,800 jobs at Travelex

PwC saves 1,800 jobs at Travelex

Credit Strategy launches The Car Finance Confidence Tracker

Credit Strategy launches The Car Finance Confidence Tracker

Upcoming events

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group