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One year after the Financial Ombudsman Service (FOS) introduced charges for professional representatives, a new review shows the changes are reducing poorly evidenced complaints while ensuring genuine cases continue to reach the Ombudsman.
FOS has published its review of charging professional representatives, confirming that the reforms introduced on 1 April 2025 are working as intended. The BVRLA actively supported the introduction of the new charging model, having raised longstanding concerns about the impact of speculative complaints on members.
Excluding motor finance commission cases, referrals from professional representatives fell by around 78,000 during 2025/26, with almost 27,000 fewer complaints being withdrawn or abandoned. FOS estimates these cases could previously have generated more than £17 million in case fees for respondent businesses without delivering an outcome for consumers. At the same time, the uphold rate for representative-led complaints has increased, suggesting better-evidenced cases are now being referred.
The findings reflect feedback from many BVRLA members, who had experienced large volumes of speculative complaints from claims management companies. The review concludes that the charging model is striking the right balance between fairness, access to justice and complaint quality.
From 1 April 2026, the charging model was refined further. Professional representatives now pay case fees on closure rather than upfront, with larger firms paying quarterly in advance. The previous allowance of ten free cases has been replaced with a £2,000 annual allowance, while the £260 case fee will be reviewed as part of the FOS Plans and Budget consultation later this year.
Read the full Charging professional representatives – one year on report for further detail.
Members interested in joining the BVRLA Regulation and Compliance Working Group can contact [email protected]. The Association will also seek member views when the FOS consultation on future case fees opens in December.
