FOS consults on 2015/16 budget: FOS has published its proposed plans and budget for 2015/16 for public consultation and released updated figures for the current financial year. Next year FOS plans to:
- answer 1.4 million front-line consumer enquiries;
- resolve a further 250,000 disputes involving mis-sold payment protection insurance (PPI). This will reduce the number of existing PPI cases from around 280,000 to 180,000;
- tackle 88,000 banking complaints, 33,000 insurance cases and 17,000 investment complaints; and
- recruit an additional 200 adjudicators and ombudsmen.
FOS also proposes to:
- lower the total cost of the ombudsman to the financial services sector by 13%;
- freeze the case fee paid by businesses at £550 payable only after the 25th case, meaning that 99% of businesses will continue to pay no case fee at all; and
- continue the group-account charging arrangement for the eight largest businesses that generate the most complaints and make up three quarters of FOS' usual workload.
FOS asks for comment by 16 February 2015. (Source: FOS: Our Plans and Budget Consultation Paper)