Charge fees to claims firms, Apfa tells Fos

In its response to the Fos’ budget consultation, Chris Hannant, director general at APFA, said:“We want Fos to change the rules so that all CMCs contribute a fair share to the provision of the service.

“We fully support the right of customers to make a complaint when they have suffered financial loss, and recognise CMCs can provide a useful service.

“However, CMCs make substantial amounts of money from what should be a free service to consumers. Therefore, we think they should be obliged to make some contribution to the cost of that service.”

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Mr Hannant said that introducing a fee would also encourage a more careful validation process before claims are submitted, thereby removing the potential for frivolous claims.

He added: “Last year the Ministry of Justice introduced fees for certain employment tribunal cases. Since then, the number of claims brought has fallen sharply.

“We want to see Fos take a similar approach to its fees. It will discourage frivolous and in some cases fraudulent claims, and ensure the cost burden is allocated appropriately.”


Fos issued its budget consultation on 9 January. Firms had until 17 February to file their responses. Tony Boorman, chief ombudsman and interim chief executive, said Fos would continue to discuss with trade associations and financial services practitioners before it published its finalised budget in March.