Context
The Financial Ombudsman has published its final Plans and Budget for 2024/25 detailing the next phase of its transformation, also confirming its expectation of an increased caseload over the upcoming financial year.
Key points to note and next actions
The FOS is anticipating a total caseload of 210,000 complaints, which is an increase to its previous estimate of 181,300. This rise is a result of several factors, including unaffordable lending, credit card complaints, fraud and other scams and also motor finance commission cases that are not affected by the FCA’s review.
The FOS case handling time has reduced from 4.8 months to 2.96 months between 2022/23 and 2023/24.
To help towards its target to resolve 90% of cases within 6 months, the FOS has recruited more case handlers, while committing to continue its investment in customer and business digital journeys, as well as expanding its regional presence. Also within the plans is also confirmation of the reduction to the FOS case fee from £750 to £650 and a reduction in the FOS levy. The FOS estimates this will save businesses an effective £60 million overall.