FOS’ Plan and Budget report proposed funding model changes which would move the four largest bank groups – accounting for 60% of work – to a different fee structure, allowing for 25 free cases; it was supported by the major financial services businesses.
Consultation on the FOS draft Plan and Budget of £280.1m was discussed and approved at the 13 December FSA board meeting, according to the newly-published minutes.
The minutes stated: “There were issues around current behaviour of financial services businesses in relation to PPI complaints, and whether businesses were using the ombudsman service rather than dealing with complaints themselves.”
The FSA said it will be considering the behaviour of financial services businesses in relation to PPI complaints at the next meeting.
The board meeting, attended by incoming Financial Conduct Authority chief executive Martin Wheatley, noted evidence that there was no material difference between the uphold and rejection rate by the Ombudsman Service of cases brought directly by consumers, and by claims management companies.
