Hunt Review supports Which? call for FOS to remain free to consumers

As Lord Hunt’s review of the Financial Ombudsman Service (FOS) is published, Which? personal finance campaigner Doug Taylor says:

"It is great news that the review has agreed that FOS should remain free to consumers. Introducing charges would inevitably discourage some people from using the service, particularly those in financial hardship.
 
"We also agree that a time-consuming and expensive appeals process would only mimic the courts - it’s very important for that the service remains a quick form of consumer redress.
 
"FOS is the unsung hero of UK financial services regulation and helps to maintain consumer confidence in the industry. We’re particularly pleased that the review supports a shortening of the current 8-week deadline for companies to resolve simpler debt-and credit-linked complaints. This would mean a real improvement for the most vulnerable consumers. ”

Notes to Editor

1. The Financial Ombudsman Service was created under the Financial Services and Markets Act 2000 to provide an impartial resolution service for disputes between financial services firms and their customers: www.financial-ombudsman.org.uk. The service is free for consumers.

2. The independent Hunt Review was set up in September 2007 by the board of the Financial Ombudsman Service to consider i) whether the ombudsman service ought to do more to be visible and accessible to those it is designed to serve; and ii) whether the ombudsman service is making the most effective use of the information and experience derived from its dispute-resolution work, in order to add value for the benefit of industry, consumers and regulators. The Review was chaired by Rt Hon Lord Hunt of Wirral MBE (David Hunt) and published its report on Wednesday 9 April: www.thehuntreview.org.uk.

3. Which? supports the Financial Ombudsman Service as a fair and cost-effective alternative to the courts for resolving disputes between firms and consumers in a market where power and information asymmetries are large. You can read our submission to the Hunt Review here: http://www.thehuntreview.org.uk/submissions/47_Which_Response.PDF.

Which? is the leading independent consumer champion in the UK, providing up to date, impartial, expert information on thousands of products and services to help make individuals as powerful as the organisations they have to deal with in their daily lives. To find out more visit www.which.co.uk