Firms must start paying the fee for every case referred to the Ombudsman by consumers beyond the three free case limit.
The FOS generates about 80% of its operating income from case fees.
It has also frozen at £20.5m the amount it will raise through levies in 2011/12.
However the service has warned firms to prepare for an industry-wide additional levy of £25m to deal with soaring complaints about payment protection insurance (PPI).
The levy, raised and collected by the FSA, will fall on the “compulsory jurisdiction”. This includes all firms authorised or registered by the FSA, including those which have not had any cases referred to the Ombudsman service.
In January, FOS warned the decision among some firms, including large high street banks, not to pay up when receiving an unfavourable ruling over PPI could cripple it “in six weeks”.
Many PPI sellers are refusing to co-operate with the FOS until the outcome of a judicial review into PPI mis-selling by the British Bankers Association (BBA). This includes paying the case fees which make up 80% of the FOS’ income.
The FSA has approved FOS’ operational budget at £102.9m for 2011/2012.
