Credit, Collections & Insolvency News
The Financial Ombudsman Service (FOS) plans to increase its levy on financial firms by an extra £16 million.
The proposals are to increase the current levy of £70 million to £86 million by 2026/27. The FOS is also consulting on raising its case fee from £650 to £680, in line with inflation. The ombudsman also expects to handle more complaints in 2026/27 for banking and consumer credit – the category that includes mortgage grievances.
The FOS expects to receive 188,000 cases in 2026/27 across a range of financial products, including bank accounts, credit cards and insurance. It is planning to resolve 245,000 cases as it works through our existing stock levels, 60,000 of which will be related to motor finance commission (MFC).
The FOS expect complaints about Buy Now Pay Later (Deferred Payment Credit) products to come into FOS jurisdiction in July 2026, meaning it is likely to start receiving complaints in the second half of 2026/27. Using insight from market leaders and experience of new products, and expects to receive around 2,000 cases on issues including general administration, problems with credit files and perceived irresponsible lending.
FOS are working closely with the Financial Conduct Authority (FCA) and HM Treasury to deliver a series of reforms to the redress system to help firms identify and resolve issues before complaints escalate and bring consistency and predictability for businesses and consumers.
Jenny Simmonds, Interim Chief Executive at FOS said “We are delivering a series of improvements to focus on our core purpose as a quick, informal and impartial alternative to the courts, now and in the future, helping to build confidence in financial services.
“As we consult on our Plans and Budget for 2026/27, we want to lay the foundations for an agile, responsive and modern Financial Ombudsman which is fit for the future and has the confidence of consumers and financial businesses alike. The next year will be a crucial one for our service and we welcome views from stakeholders on our proposals.”