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Financial Ombudsman Update

 

Financial Ombudsman Update: increased compensation limit

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Financial Ombudsman Update: increased compensation limit

As of 1st April 2019, the Financial Ombudsman can award consumers up to £350,000 in compensation if they have a complaint about a financial services company, e.g. banks, insurance companies, or financial advisers. This is a significant increase from the previous £150,000 compensation limit.

Prior to 1st April, if a consumer was owed more than £150,000, they therefore had to negotiate any additional amount of compensation with the relevant company, or incur significant costs pursuing the remainder by way of litigation. This limited the scope and effectiveness of the service FOS was able to offer.

The new increased limit should make pursuing a FOS decision more attractive to consumers who may have previously sought to resolve the matter by way of stressful and expensive litigation.

Consumers should note that the new limit only applies to complaints made about issues which happened on or after 1st April 2019.

Regrettably, even if FOS make an award in a consumer’s favour, the company may refuse to pay out in accordance with the FOS’ decision. Often, companies treat FOS decisions with much less respect than they would a court order. In such circumstances, Bell Lax have considerable experience enforcing such awards as though they were court judgments. 

If you have a claim or a complaint which you would like FOS to investigate Bell Lax has considerable experience of bringing such claims.

Alternatively if you have a FOS award you need to enforce, or consider that you are due more sums than FOS are able to award even under the new rules, please don’t hesitate to contact our specialist dispute resolution team at Bell Lax on 0121 355 0011.