CCTA response to the Financial Ombudsman Service (FOS) plans and budget for 2022/23
Commentary | 15/12/21
“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.
“While we would welcome the freezing of the case fee after the successive rises of recent years, we are concerned about the reduction in the free cases threshold particularly when, all case fees, win or lose, are shouldered by the firm.
“The free threshold has been reduced from 25 to just three cases. This will mean that around 20 per cent more firms will now have to pay case fees, which will disproportionately affect smaller businesses. That alone represents a cost of over £16,000 to a firm with 25 cases.
“There is little explanation of why the organisation’s cost base will rise by over £40 million for the coming year and is an example of the wider concerns we have had about the financial model of the FOS in recent years. More needs to be done to ensure the Ombudsman delivers value for money”.