The Financial Ombudsman Service (FOS) has announced plans to introduce a £250 charge for professional representatives referring cases, starting from 1 April 2025. The change is intended to create a fairer funding structure and ensure that complaints are submitted with stronger supporting evidence.
Between April and December 2024, professional representatives were responsible for around 47% of the cases referred to the service. Under the new system, they will be entitled to refer up to ten cases per financial year free of charge. Any additional cases will incur a £250 fee, with a £175 refund provided if the complaint is upheld in favour of the consumer - reducing the net charge to £75.
Consumers who refer complaints themselves, as well as charities, families, and friends assisting them, will continue to access the service free of charge.
Currently, financial businesses pay a £650 case fee when complaints against them are investigated, while professional representatives do not contribute to these costs. Under the new rules, if a complaint referred by a professional representative is not upheld or is withdrawn, the financial business involved will pay a reduced case fee of £475 instead of £650.
The introduction of these charges is designed to create a fairer financial model and encourage professional representatives to assess the strength of complaints more carefully before submitting them.
More information on the FOS website: Financial Ombudsman Service to start charging professional representatives to refer cases.
