The government had announced a review of the Financial Ombudsman Service and is seeking views of their proposed changes
At a quick glance, several of the changes may lead to less favourable outcomes for customers.
I havenât read the full thing, but from briefly reading it, and with support from AI. It doesnât seem to necessarily mean it be less favourable for customers.
The review identifies that the Financial Ombudsman has at times acted as a âquasi-regulator,â leading to inconsistencies and uncertainty for both consumers and firms.
The review aims to ensure the FOS continues to operate as a simple, impartial dispute resolution service that efficiently handles complaints against financial services firms, working in conjunction with the Financial Conduct Authority (FCA)
The disadvantage of using AI is it just regurgitates what the document states rather than reading between the lines.
They also intend to reduce the 8% interest rate used to calculate interest on compensation to base rate + 1%
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Iâm fully aware of the limitations of AI, donât worry. As I mentioned, I read a good chunk of it myself and my summary is still accurate. Reading between the lines is not accurate.
I guess weâll have to see what the outcome is before jumping to any conclusions.
Itâs definitely not an improvement. Iâve seen various comments by people that know more than me, eg Martin Lewis, that the changes are largely negative.
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