FOS consults on case fee reform to promote fairer cost distribution

Following stakeholder feedback, the Financial Ombudsman Service (FOS) is consulting on whether to change case fees that would see businesses pay less for complaints which are resolved at an earlier stage.

The proposals aim to better reflect the effort and cost the FOS incurs investigating cases and could support the early resolution of complaints.

Currently, regardless of the stage at which the dispute is resolved, firms pay a fixed fee of £650 for every case against them the service investigates.

Since 1 April 2025, if the complaint is submitted by a professional representative and not upheld by the FOS, this fee is reduced to £475. 

The current model means all businesses pay the same. The consultation – which closes on 8 October 2025 – is seeking views on the proposal that business case fees are differentiated based on the stage at which a case is resolved. 

However, the not-for-profit independent service will remain free for consumers to refer a complaint, and for charities, families and friends who may be helping them.

Further consultations 

The FOS is also consulting on whether case fees should be differentiated based on complaint outcome.

Stakeholders have called for a stronger ’polluter pays’ model where those firms found to have done something wrong contribute more towards the service’s costs.

The FOS is also seeking views on a change to the free case allowance in which it could introduce charging for professional representatives, meaning that the value of free cases can differ.

This change would allow all respondent businesses and professional representatives to save the same amount of money.

Jenny Simmonds, interim chief executive at the FOS, said: “We are undertaking an ambitious transformation programme to reform our service and make it work for today’s economy.

“These proposals are seeking to modernise our charges for businesses, creating a fairer funding model that is fit for the future and which better reflects our work, while ensuring our service remains free to consumers who bring their cases directly to us.”