Published by: Financial Ombudsman Service
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Key Take Aways
The Financial Ombudsman Service is proposing to further differentiate case fees, primarily based on case stage, to better align funding with the work involved and ensure fairness across industry sectors.
Differentiation by case stage aims to incentivise early dispute resolution, encouraging firms to resolve complaints swiftly and minimise formal intervention.
The proposed tiered fees for stages include proactive settlement, before a view is issued, and after the view, with discounts applied to earlier stages reflecting lower effort.
There is support for fee differentiation by outcome, where cases upheld in favour of consumers attract higher fees, aligning with a 'polluter pays' principle.
Risks identified with stage-based differentiation include potential behaviour shifting towards settling early to lower costs, and possible impacts on consumer fairness if some firms accelerate resolutions prematurel...
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