FOS & case fees

jonesMUFCforever

Can I ask an honest question?


Judging by some posts on here a lot of resources and time are wasted by claimants making stupid claims.
Would it be a good idea for the ombudsman to introduce a fee for making a claim to be repaid if they win the case?


It costs the financial institutions to respond to a claim so why not make it fairer?
I am not suggesting a fee of £500 but perhaps a staggered fee depending on the value of a claim?

boo_star

jonesMUFCforever wrote: »

Can I ask an honest question?


Judging by some posts on here a lot of resources and time are wasted by claimants making stupid claims.
Would it be a good idea for the ombudsman to introduce a fee for making a claim to be repaid if they win the case?


It costs the financial institutions to respond to a claim so why not make it fairer?
I am not suggesting a fee of £500 but perhaps a staggered fee depending on the value of a claim?

I'd rather have the financial institutions pay nothing if they are found to be not at fault.

financial_ombudsman_representative

jonesMUFCforever wrote: »

Can I ask an honest question?

Judging by some posts on here a lot of resources and time are wasted by claimants making stupid claims.
Would it be a good idea for the ombudsman to introduce a fee for making a claim to be repaid if they win the case?

It costs the financial institutions to respond to a claim so why not make it fairer?
I am not suggesting a fee of £500 but perhaps a staggered fee depending on the value of a claim?

Thanks for the question on our charging structure.

We’re trying to keep this board for people who have a problem with a payday loan or need some help managing their money worries.

If you have a question about the ombudsman more generally or how we’re funded could I ask you to go to our Twitter page to ask it now, or to direct message us.

The way we are funded and our case fee is discussed every year in our plan and budget – http://www.financial-ombudsman.org.uk/publications/plan-budget.htm and we attempt to make this as fair as possible. We do not charge consumers as they have a statutory right under parliament to bring a case to us, free of charge, under the Financial Services and Markets Act 2000.

At present, businesses get 25 “free” cases against them – this means that only 1% of the businesses we cover actually pay a case fee to us.

You can find out more information here: http://www.financial-ombudsman.org.uk/publications/technical_notes/QG1.pdf

~Brock~

financial_ombudsman_representative wrote: »

The way we are funded and our case fee is discussed every year in our plan and budget – http://www.financial-ombudsman.org.uk/publications/plan-budget.htm and we attempt to make this as fair as possible. We do not charge consumers as they have a statutory right under parliament to bring a case to us, free of charge, under the Financial Services and Markets Act 2000.

At present, businesses get 25 “free” cases against them – this means that only 1% of the businesses we cover actually pay a case fee to us.

I've heard this bonkers argument being wheeled out before from the ombudsman.

Somehow getting 25 'free' cases seems to make it 'OK' for consumers and claims firms to make vexatious and, in many cases, fraudulent complaints in their ever more desperate pursuit of compo.

If I was a firm, would that make me feel any better about getting the 26th complaint and then being charged £550 for the privilege?

What about the banks who are getting 1000's of complaints every week? I know there is little sympathy for them from most quarters, but if only a fraction of those are vindictive complaints that contain lies and fabrication on the part of the consumer/cmc then the resultant fees still end up being paid for by other customers somewhere else along the line.

ANY proven fraudulent complaint should be dismissed at the earliest opportunity and the person responsible should be charged accordingly for wasting everyone's time.

I also thought that the ombudsman was not supposed to be a consumer champion or money advice service. Why then does the original post read exactly like the sort of thing that would come from CAB or MAS ?

jonesMUFCforever

I don't do Twitter - THANK YOU FOR YOUR REPLY.

safestored4

Well put Mr Jones. Bear in mind as well that all the regulaters, including the Financial Ombudsman, have a vested interest in creating as black a picture as possible for financial organisations. Their careers depend upon it. Without the myriad of complaints to handle they would have to find proper jobs.

chanz4

its like the energy ombudsman, they take the sides of canabis farms and people caught stealing that put others at risk when disconnected

rs65

financial_ombudsman_representative wrote: »

We want to use this thread to encourage people with a payday loan related problem to get in touch with us and seek help.

Sounds like you are touting for business. Are you not busy enough?

To quote your signature 'MSE has given permission for me to post in response to queries about the company'

Should you be starting threads?

DevCoder

Im confused Mr FOS

JonesMUFC created this thread with the subject, so why do you want to hijack it to talk about payday issues?

If *you* (FOS) want to talk about payday issues, then I politely suggest you please start your own thread, otherwise please respect the OP and let the discussion continue on the subject he wanted.


For interesting reading see

http://www.financial-ombudsman.org.uk/faq/answers/research_a5.html

and if you want to see what they have "budgeted" for 13/14 for fees then

http://www.financial-ombudsman.org.uk/news/updates/plan_and_budget_13-14.html

so PPI case fees are now £900 after the 25th unless I read the budget wrong.

rs65

krisdorey wrote: »

If *you* (FOS) want to talk about payday issues, then I politely suggest you please start your own thread, otherwise please respect the OP and let the discussion continue on the subject he wanted.

They did start a thread but some posts were moved here.

DevCoder

Oh ok, well apologies then (maybe the mods could indicate the separation of posts into individual threads so this wouldn't cause this confusion)

So we are free to talk about the FOS case fees in this thread ?