Financial Ombudsman Service’s 2023/24 Plans and Budget Consultation - Which? response

Overarching comments:

• Which? welcomes the Financial Ombudsman Service’s consultation on its plans and budget for 2023/24. We support the Financial Ombudsman Service’s funding proposals and we continue to support a budget that allows for a free, high quality service that delivers fair and consistent outcomes for consumers.
• We expect significant levels of financial services disputes between consumers and firms in the areas of scams, as well as a growing number of complaints in buy now pay later (BNPL) and mortgages.
• The level of consumers’ access to cash and general banking services continues to be an issue of concern. Those that are the most vulnerable may be experiencing sufficient barriers that preclude their dissatisfaction reaching the Financial Ombudsman Service.
• The Financial Ombudsman Service should continue to consider the impact of cost of living challenges on levels of demand for its service. Figures from our consumer insight tracker indicate that consumer confidence levels remain very low while levels of financial difficulty remain high.
• We expect to see the Financial Conduct Authority’s New Consumer Duty influence Financial Ombudsman Service caseloads, increasing them in the first instance. Early feedback on observations from the Financial Ombudsman Service will play a key role in reducing complaints over time.