“Unfortunately, the FOS has missed out on an opportunity to deal with the backlog of complaints it faces”.

“At such an early stage, where the decision still rests with the customer, ask the lender to take one more look. The customer can accept an improved offer, with the comfort that if they have any concerns, they can carry on with the FOS investigation. This could have been the simplest of systems”.

“However, this new process includes a check on the offer made by the lender, bringing with it delay as the FOS carries out a review. There will be a new administration system as we count these cases. There will also be the application of a £750 case fee each time, no matter what happens”.

“From the engagement we have had with members, some lenders are surprised that the FOS seems to have rejected a simpler process. There is less surprise that the FOS are keen to continue charging a full case fee”.