The Financial Ombudsman Service (FOS) has announced that, from 1 January 2026, the interest rate applied to compensation awarded to consumers for new complaints will track the Bank of England’s base rate plus 1%. This will be calculated using a weighted average from the date the loss to the consumer occurred until the date the redress payment is made. This change follows the FOS’ June 2025 consultation and joint call for input with the Financial Conduct Authority (FCA), and aims to better reflect current market conditions and the actual cost to consumers. The 8% penalty interest rate for late compensation payments will remain unchanged. Further implementation details, along with broader proposals to modernise the redress system, will be published in autumn 2025.

The Financial Ombudsman Service (FOS) has announced that the Financial Conduct Authority (FCA) has confirmed the increase to its award limits for the coming financial year. From 1 April 2024, FOS award limits will go up to £430,000 for complaints referred to it on or after 1 April 2024 about acts or omissions by firms on or after 1 April 2019; and £195,000 for complaints referred to it on or after 1 April 2024 about acts or omissions by firms before 1 April 2019.

The Financial Ombudsman Service (FOS) has published a new webpage on its approach to awarding compensation for unsuitable investment advice. It details the FOS’ approach to so-called ‘formulaic awards’ and how firms should work out compensation in line with this approach.

The Financial Ombudsman Service (FOS) has published annual complaints data and insight for 2023/24, which shows that banking complaints hit a 10-year high. The most complained about product was current accounts, with consumers lodging 30,635 complaints, compared to 26,039 the previous year. Fraud and scams cases have risen by a fifth and are now at their highest level. Around half of these cases were authorised push payment (APP) scams.

The Financial Ombudsman Service (FOS) is consulting on proposals to charge claims management companies (CMCs) and other professional representatives up to £250 to lodge a case, reduced to £75 if the case outcome is in favour of the consumer. The FOS says its service would remain free to those who bring their case directly to it, as well as families and friends, charities, and voluntary organisations who may be helping them. Responses to the consultation are sought by 4 July 2024.

The Financial Ombudsman Service (FOS) is consulting on its strategic plans and budget for 2026/27. The consultation document sets out projected complaint volumes, case resolution targets and proposed changes to case fees and levies. Responses are sought by 21 January 2026.

The Financial Ombudsman Service (FOS) has launched a consultation on updates to its funding model with proposed changes to its case fee structure and billing processes. The consultation outlines options to differentiate case fees based on either the stage at which a complaint is resolved or the outcome of the case, with lower fees proposed for cases that are not upheld. It also proposes replacing the current free case count with a £2,000 annual monetary allowance for respondent businesses and professional representatives. It further proposes introducing quarterly billing in advance for firms and professional representatives forecasted to have 25 or more cases annually. Responses are sought by 8 October 2025. Feedback is intended to inform the 2026/27 Plans and Budget consultation in November 2025, with implementation of approved changes expected from 1 April 2026.

The Financial Ombudsman Service (FOS) has published its latest complaints data for Q3 2023/24 (October to December 2023). It shows that perceived unaffordable lending has driven complaints relating to credit cards to their highest quarterly level.

The Financial Ombudsman Service (FOS) expects to receive over 37,000 fraud and scams complaints in the 20025/26 financial year, constituting 35% of incoming banking and loan cases, an increase from the 33,000 cases forecasted for the current financial year.

The Financial Ombudsman Service (FOS) has released its latest half-yearly data (H2 2023), showing complaints have risen by 20%. Banking and credit complaints were the main driver of the rise, with current accounts and credit cards making up over 40% of cases within this sector. Current account complaints continue to be dominated by disputes over fraud and scams.

The Financial Ombudsman Service (FOS) has implemented a new charging regime for professional representatives, effective from 1 April 2025. Under this policy, representatives will incur a fee of £250 for each case referred beyond an annual allowance of ten free cases. If a complaint is found in favour of the consumer they represent, the representative will receive £175 back in credit, reducing the charge to £75. If a complaint referred by a professional representative is not upheld or is withdrawn, the financial business against whom the complaint was made will pay a reduced case fee of £475, instead of the standard £650. The FOS remains free for individuals who bring their cases directly, as well as for families, friends, charities, and voluntary organisations assisting them.

The Financial Ombudsman Service (FOS) has published their final Plans and Budget detailing the next phase of their transformation while confirming the increased caseload expected in the upcoming financial year.