skip tocontent

consultation opens on Financial Ombudsman Service’s proposed plans & budget

13 December 2017

The Financial Ombudsman Service has today published updated figures on the problems consumers are raising this financial year (2017/2018) along with the proposed plans and budget for the next financial year 2018/2019.

Looking at the current financial year, 4,500 more complaints concerning short-term lending – payday loans and instalment loans – are expected than previously forecast. We have found payday lenders are wrongly rejecting six in ten complaints, higher than we typically see in other product areas.

More people experiencing a problem with a short term lender are expected to get in touch in the next financial year – with a projected 20,000 new cases in 2018/2019.

In contrast, fewer consumers than anticipated have contacted us this year with a packaged bank account complaint. We have worked closely with businesses, claims management companies and consumer groups to share our thinking and insight in this area. This means that more people are getting the right answer first time, without needing to escalate their complaint. We expect complaints about packaged bank accounts to fall again in the next financial year.

PPI remains our biggest area of work, accounting for more than half of the new cases (250,000) we will see in the next financial year. While the PPI deadline is now set, the next stage is still unfolding. Our progress on these cases will depend on a number of factors, but we will continue to work with the parties involved so that people know where they stand as quickly as possible.

In total in the next financial year (2018/2019), we are gearing up to tackle 410,000 new cases. To fund this work, we propose for the sixth consecutive year to continue to charge a case fee of £550 per case with 25 “free” cases. We will also maintain the group funding arrangements for larger businesses as they are, with no amendments in 2018/2019.

key stats

The ombudsman forecasts in the current financial year (2017/18) it will:

  • deal with 7,000 more complaints than forecast
  • tackle 4,500 more short-term lending complaints than expected
  • look at 2,500 fewer packaged bank account complaints than expected

And in the next financial year (2018/19) the ombudsman forecasts it will:

  • tackle 410,000 new cases
  • deal with 250,000 new PPI cases
  • take on 20,000 new short-term lending complaints
  • freeze the case fee at £550 for the sixth consecutive year, with 25 “free” cases and maintain the current group funding arrangements.

The consultation closes on Wednesday 31 January.

For more information please contact the Financial Ombudsman Service press office – phone: 020 7964 1234 or email media enquiries.