The Financial Ombudsman Service is increasing its individual case fee for the first time since 2013, but firms will still be entitled to 25 free cases in each financial year before only needing to pay the £650 case fee on the 26th and subsequent case. This means 90% of firms will continue to pay no FOS case fees and their only FOS funding contribution will continue to be through the general levy.
The FOS expects to receive 245,000 new complaints in the 12 months to March 31 2021. While in one sense the payment protection insurance claims saga ended last August, many of the largest PPI sellers took so long to issue their final responses, and consumers then have six months from the date of the final response to go to the Ombudsman, so this all means that this product will continue to account for a large proportion of the organisation’s workload. FOS expects 100,000 new PPI cases in 2020/21, or just over 40% of the total, and the Service says it expects all of its existing PPI staff to remain employed for the full financial year.
It expects complaints about claims management companies to number just 1,300, around 0.5% of the total.
When the final figures for the financial year just ended are confirmed, they are expected to show that FOS received 301,000 complaints in 2019/20 and that 150,000 of them concerned PPI. Hence this means FOS is budgeting for a reduction of 19% in overall complaint numbers and of 33% in PPI cases.
Banking and credit complaints are forecast to fall 7% from 105,600 in 2019/20 to 97,800 in 2020/21.
FOS hopes to bring down its PPI backlog by resolving 140,000 complaints about this product during the financial year. In general, the Service will aim to resolve 95% of all complaints where people have been waiting more than 12 months for a decision, and by March 2021, no complaint should have been outstanding for more than 18 months, except where the complaint is affected by legal action and the timetable isn’t within FOS’s control. FOS’s target for the number of non-PPI complaints to be resolved in 2020/21 is 165,000.
The information shown in this article was correct at the time of publication. Articles are not routinely reviewed and as such are not updated. Please be aware the facts, circumstances or legal position may change after publication of the article