Which? is worried the Financial Ombudsman Service (FOS) reforms serve to prioritise the finance industry over consumers.
The consumer champion responded to proposals to reform the FOS, which the government accused of being a “quasi-regulator” rather than a complaints service.
Changes would mean more cases will be dismissed and sent elsewhere, the complaints time limit would be limited to 10 years, and the Financial Conduct Authority would have a greater role in dealing with mass redress events.
Rocio Concha, Which? director of policy and advocacy, said: “These proposed changes to how the Financial Ombudsman Service (FOS) makes rulings could risk undermining its independence and mean consumers are less likely to see fair outcomes when they lodge a complaint.
“They suggest the Treasury has spent more time listening to the concerns of the finance industry than the consumers who rely on the FOS as a vital lifeline.”r
The Payment Protection Insurance (PPI) mis-selling scandal in the UK cost banks £38.3 billion between 2011 and 2020.
A Financial Conduct Authority consultation on the FOS will close on May 11.
