The Financial Ombudsman Service (FOS) has ruled out charging "nominal" fees to complainants, agreeing with Parliament's view the service must be free to ensure the public's confidence in it.
In its latest update, the service said businesses often suggest it charge consumers and claims managers for referring unresolved complaints, with one company suggesting it introduce "a nominal fee of £50 to £100".
But the FOS, which is funded by £550 case fees and an annual levy on the financial services industry, said its view on charging consumers "is very unlikely to change".
It pointed out Parliament decided a free ombudsman service underpins confidence in financial services, and that it recognises "some of the people most in need of help might not be in a position to pay [a fee]".
It added it had been receiving more complaints from people in financial hardship in recent years, reinforcing its ‘free at the point of use' policy.
Case fees
In its news update for December, the FOS also defended its £550 case fees, which only become chargeable after it has dealt with 25 cases involving a single company in any 12-month period.
From the 26th complaint onwards, companies are charged regardless of outcome, which has left some networks, which are responsible for the advice given by their appointed representatives, facing sizeable bills.
Of the 80,000 businesses it automatically covers as part of their authorisation with the Financial Conduct Authority (FCA), the FOS said only 5% had complaints referred to it in the past year. Of these, nine in ten did not pay a case fee, it said.
Advisers have a fraught relationship with the ombudsman, and in October FOS chief executive Caroline Wayman indicated the service was keen to shed its anti-adviser reputation.
Last month, FCA technical specialist Rory Percival said it was "not real" that there were significant inconsistencies between FCA and FOS decisions.
