Consumer bodies urged to take a stand against FOS fee proposal

Financial Ombudsman Service (FOS) has proposed that consumers will need to pay to make a complaint about professional services moving forward.

In its 2024/25 plans and budget consultation paper the FOS proposes that it will charge anything from £50 to £650, dependent on the complaint.

The Association of Consumer Support Organisations (ASCO) is a body that includes many companies assisting consumers in filing complaints and claims for mis-selling. They contend that this is unfair and will likely result in a reduction of legitimate complaints.

ACSO executive director Matthew Maxwell Scott said:

“If the FOS wanted to reduce its workload it’s going the right way about it, but it is consumers that will suffer.

“In the same document FOS outlines a £100 reduction in fees paid by financial services firms to fund the processing of a complaint. So it seems that the £100 saving for banks, insurers and other big companies will instead be paid by people making a complaint against them.”

Matthew said that many people prefer to use a professional firm to help them with a FOS complaint. With those firms almost certainly having to pass on the cost increase to their customers, complaining could become unaffordable.

He said: “We understand that FOS wants to reduce the number of unmeritorious claims, which we support, but this is no way to proceed.”

“On principle, we argue that the authorities should sponsor a system that makes it as easy as possible for consumers to seek redress when they have been mistreated, and our concern is that these proposed fees will be passed on to them, meaning many will not complain in the first place, even if they have a justifiable case.”

“At a time when the cost-of-living crisis is still hitting people , another layer of cost seems regressive; charging fees is just another form of stealth tax on hard-pressed consumers.

“The consultation closed on 30 January, and we hope other consumer bodies will weigh in. This backwards step should not go unnoticed by the likes of Which?, Money Saving Expert, and Fairer Finance.”

“In the wake of the Post Office scandal, consumers with a grievance against powerful and unaccountable financial companies need the option of having support to gain redress. The last thing we want is for consumer-protection agencies to hand the ball to the financial services providers companies it is supposed to be policing.”

Image: © fizkes via Canva

Emma Cockings Emma is a content editor for Claims Media. Emma is a experienced writer with a background in client-centric personal injury for a major firm. She has attended and reported on multiple brokerage events throughout her career.