Well, that didn’t take long, did it? Just days after the abrupt departure of Financial Ombudsman Service (FOS) CEO Abby Thomas, the public is served up another bitter pill. From April, professional representation for consumers navigating complex financial disputes will come with a hefty price tag. Because, apparently, ensuring access to justice is just too much of a burden for the City’s favourite ombudsman.
A System Designed to Hinder Justice
The FOS, now under interim Chief Ombudsman James Dipple-Johnstone, has confirmed that claims management companies (CMCs) and professional representatives will be charged £250 per case they bring after an initial 10 free cases. If the claim is upheld, they’ll get a £175 rebate—leaving them still £75 out of pocket. A clever little tariff designed, not to streamline the system, but to actively discourage professional support for consumers who need it the most.
And who benefits from this? The financial industry, of course. The very firms whose misdeeds create these complaints in the first place.
The Numbers Don’t Lie
Between April and December 2024, nearly half of the cases sent to the FOS—47%—came from professional representatives. Why? Because financial complaints can be complex, and the average consumer often lacks the expertise, time, or emotional resilience to navigate the bureaucratic labyrinth alone.
But rather than acknowledge this, the FOS has decided that professional representatives are merely clogging up the system, claiming that “fewer of these cases lead to better outcomes.” Translation: if people don’t have expert help, fewer claims will be successful, saving the financial services industry millions.
Who Pays and Who Wins?
Under the new rules:
Professional representatives will pay £250 per case (after 10 free cases), losing £75 per case even if they win.
Financial firms, meanwhile, get a discount—paying just £475 per complaint instead of £650 if the claim is not upheld or withdrawn.
Consumers? They’re still technically free to complain, but let’s not pretend the odds are in their favour when facing a system stacked against them.
The FOS claims this move is to reduce frivolous claims and ensure well-founded complaints. In reality, it’s yet another barrier between victims of financial malpractice and the justice they deserve. A move that makes the ombudsman’s service less of a safety net and more of a bureaucratic gatekeeper protecting industry interests.
The Endgame: Fewer Claims, More Profit for the Industry
Let’s be honest: this is about making the redress system less accessible, not fairer. The new fees won’t deter unscrupulous CMCs exploiting consumers with dodgy claims, but they will make it harder for genuine victims to get expert representation. And once again, the financial services industry gets a convenient escape route from accountability.
With Thomas gone and Dipple-Johnstone at the helm, the message is clear: the era of consumer-first financial redress is over. It’s now about protecting firms from the inconvenience of being held responsible.
Expect fewer claims, fewer payouts, and a system where the house always wins.
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