Commenting on the decision by the Financial Ombudsman Service (FOS) decision to charge professional representative firms a fee to submit a customer complaint, Matthew Maxwell Scott, Executive Director of the Association of Consumer Support Organisations (ACSO), the trade body for firms supporting consumers in the civil justice system, said:
“This is a premature decision by the FOS which will only serve to increase customer detriment and unfairly reduce the number of complaints submitted. Financial services businesses will be celebrating as a result, with many consumers forced to abandon attempts to seek redress.
“It seems extraordinary that the FOS has announced its plans before the hugely important Supreme Court appeal decision on the motor finance scandal, the hearings for which only begin on the day the FOS fees will be imposed.
“Given that the FCA is already working on options for a comprehensive redress scheme, the FOS should have waited until the judgement is handed down and the FCA’s position made clear.”
Maxwell Scott explained that many complaints are submitted by consumers and their representatives as a last resort because financial services companies ignore FCA rules and do not supply complainants with information at the outset of a complaint.
"This has been the case for tens of thousands of motor finance complaints, and many other types of complaint too.
“The FOS believes it will benefit to the tune of £3m a year as a result of its decision and by refusing to recognise poor behaviour by financial services firms. Perhaps what is most concerning, however, is that the Chancellor and HM Treasury appear also to be taking sides in favour of big business and against consumer interests.
"In summary, it’s a bad day when a body which exists to support consumers imposes charges on them for having the temerity to use professional support when making a complaint. While this would be acceptable if poor claimant behaviour was in evidence, generally here it is the banks who are behaving badly.”