Credit, Collections & Insolvency News
The Financial Ombudsman Service (FOS) is expecting more than 181,000 consumer complaints in the next financial year, with many involving everyday financial concerns.
The complaints include a rise in disputed transactions driven by an increase in financial fraud and scams, as well as unaffordable lending linked to cost-of-living pressures. The FOS has set itself a target of resolving 90% of cases within five months while reducing the case fee by £100 to £650. It will also reduce compulsory and voluntary jurisdiction levies on businesses resulting in a total £60 million reduction in case fees and levy costs.
FOS said that it had received 93,114 complaints between January and June last year, in a report published in October which is significantly higher” than the 79,921 complaints it received in the last six months of 2022.
Over the coming year, the body says it has set a new target of resolving 90% of cases within five months, which it says builds on the progress it has made to get consumers and businesses answers to disputes as quickly as possible while maintaining the quality of judgements.
FOS also cut case fees by £100 per case to £650 and reduce its compulsory and voluntary jurisdiction levies on businesses.
The body adds this is an effective £60m reduction in case fees and levy costs to businesses, once inflation and increases in the number of cases resolved are taken into consideration.
Financial Ombudsman Service Chief Executive Abby Thomas said “Looking ahead we know our service will see a high level of complaints and that those disputes will likely focus on the critical issues that impact people’s everyday lives.
“We are planning to be more ambitious next year, resolving complaints more quickly and improving the service we offer.
“At a time when all businesses are facing financial pressures, we are also reducing the cost of our service to industry.”