Free Fos spurs CMCs to make bogus complaints

Alan Lakey

In response to a story that nearly a fifth of all Financial Ombudsman Service (Fos) complaints about advisers were done through a claims management company (CMC), the facts speak for themselves.

The success rate is far lower than when consumers level complaints, this despite the rhetoric that using a CMC increases your chances of success.

The reason is simple–- CMCs abuse the Fos system by escalating complaints regardless of their merit, simply because the system is free.

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If all complainants had to pay a deposit – returned if successful – then the tidal wave of opportunistic and downright fraudulent complaints would end at a stroke.

Alan Lakey


Highclere Financial Services,

Hemel Hempstead,