UK Overhauls Financial Complaint System to Address Rising Scandals

The Financial Ombudsman Service and Financial Conduct Authority are set to modernize rules to handle mass complaints more effectively.

The Financial Ombudsman Service (FOS) and Financial Conduct Authority (FCA) are revising the complaint handling system to prevent mass redress events.
Chancellor Rachel Reeves has called for clearer cooperation between the FOS and FCA to manage historic market practices and consumer claims.
The FOS plans to introduce charges for cases brought by claims management companies, with fees up to £250, pending parliamentary approval.
Feedback from industry and consumer bodies is being sought to improve dispute resolution processes and ensure better outcomes for consumers.
The review comes as complaints, particularly concerning car finance mis-selling, have surged, threatening to overwhelm the current system.