Financial Ombudsman Service: Fees and Charges
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of the Financial Ombudsman Service’s decision to introduce a £250 charge for claims management companies to refer cases.
Answered by James Murray
The Government recognises that many professional representatives, including claims management companies, provide a valuable service to consumers by supporting them to make financial services redress claims. However, there are examples of poor behaviour from some professional representatives, and the Government considers that introducing a fee for professional representatives when they bring cases to the Financial Ombudsman Service (FOS) will help to ensure that the FOS can focus on promptly resolving consumer complaints and reduce the impact of spurious complaints on financial services firms.
On 25 November 2024, Parliament approved a Statutory Instrument which allows the FOS to charge fees to professional representatives.
The FOS is responsible for determining exactly who it charges and the level of any fees, and following extensive consultation, it has confirmed its intention to charge professional representatives from 1 April 2025.
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