CMC Update (2023-1)

Published 19 October 2023

We regularly write out to members updating you on what we are seeing in terms of developments around CMCs. We last wrote out at the close of May and that sparked some ongoing conversations with CCTA members, especially in home credit and High-Cost Short-Term Credit (HCSTC).

CCTA comment on FOS future funding paper

Published 16 June 2022

On Tuesday the Financial Ombudsman Service (FOS) released its long-awaited discussion paper on its future funding model. For some time, we have been engaging with the FOS on its funding model and the burden it places on the alternative lending sector. We have been clear that the organisation needs a more sustainable model moving forward.

CCTA response to the FOS final plans and budget 2022/23

Published 30 March 2022

We are disappointed that the FOS has decided to implement the proposals it consulted on earlier this year, despite the feedback it has received. For some time, we have been talking about the financial pressure our members are under from the current fee structure of the FOS.

CCTA response to the FOS plans and budget 2022/23

Published 15 December 2021

For some time, we have been talking about the financial pressure our members are under from the current fee structure of the FOS. We are disappointed by today’s announcement which includes a large rise in the compulsory jurisdiction levy paid by firms.

Meet the FOS

Published 06 October 2021

The Financial Ombudsman Service (FOS) ran a virtual ‘Meet the Ombudsman’ workshop. The session was aimed at firms that have had little or no experience of dealing with FOS complaints. It was led by John Wightman and Sarah Conway – two ombudsman leaders who oversee the work of the FOS on high-cost credit.

CCTA thoughts on the FOS Annual Complaints data

Published 26 May 2021

The FOS has released its annual complaints data today. From a quick glance, what jumps out is the high upload rates for complaints about home credit and guarantor loans. Uphold rates for both of these are currently over 80%, compared with the average uphold rate of 31% across all products. However, there is more to this when the detail is explored.

CCTA comment on FOS plans and budget 2021/22

Published 31 March 2021

We are particularly concerned about the changes surrounding the case fee announced in today’s publication. We do not believe any justification has been provided for a further rise in the case fee, following the increase introduced just last year. This has now increased by a third over the last two years.

CCTA comment on the departure of Caroline Wayman

Published 10 March 2021

It is no secret that we have long been concerned about the management of the Financial Ombudsman Service (FOS). Our most recent concerns have been about the organisation’s finances – both the funding model and runaway spending.

CCTA views on the FOS budget consultation

Published 29 January 2021

The Financial Ombudsman Service (FOS) has been consulting on its plans and budget for the coming year. As the consultation closes, we wanted to share our thoughts. We feel the proposals will place increasing pressure on lenders and create an environment in which borrowers do not receive the best outcomes.