CCTA commentary on the report of the independent review of the Financial Ombudsman Service

The findings of Richard Lloyd’s report are helpful as far they go, but a more comprehensive review is needed. The credit industry will recognise the shortcomings his report identifies, just as they recognised the criticisms revealed in the Dispatches Programme — primarily the lack of staff expertise and inconsistency in decision-making.

FOS is clearly under organisational pressure from the volume of PPI mis-selling claims it has to handle, but that’s of little comfort to credit and other financial services businesses who suffer as a result.

The most important finding is the call for ‘a new strategic plan’ covering pretty much every part of the organisation. Our clear view is that the production of the new plan should be a preceded by a root and branch review of FOS by the National Audit Office. There hasn’t been one for 8 years and the complaints and claims industry has changed beyond recognition.

Richard Lloyd looked into a narrow subset of issues related to a 30-minute documentary. There is a much longer list of grievances that need closer attention. Chief among these are the malign activities of the claims management industry that send thousands of vexatious complaints at an over-stretched Ombudsman in the knowledge that they won’t be rooted out.

Greg Stevens

CEO CCTA

12th July 2018

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