FOS announces the continuation of and changes to the proactive settlement scheme

June 17, 2024

The FOS proactive settlement scheme currently gives financial businesses the opportunity to resolve a complaint early in the FOS process.  Over the past couple of years FOS has trialled this new scheme to help financial businesses and their customers resolve complaints more quickly. By using ‘proactive settlement’ financial businesses can make an offer to resolve a complaint before FOS carries out a full investigation. 

From 24^th June 2024 the changes to the scheme criteria are:

• Simplifying the scheme – businesses must make an offer within 14 days from when the case moves to investigation. 
• FOS communicating with their customers – when FOS receives an offer, FOS will assess whether it meets the scheme criteria. If not, FOS will let the business know why and that there will be an investigation in the normal way.  
• FOS improving their internal processes – FOS will work internally to embed the process permanently and to ensure that FOS can continue to send offers on to customers promptly. 

For a case to meet the scheme criteria and be resolved as proactively settled: 

• Firms must make an offer in writing within 14 calendar days of being notified that the case has moved to investigation.
• When firms put forward their offer, they must make it clear that they are making it under the ‘proactive settlement scheme’.
• The offer should be different from any previous offer the firm has made to their customer, including in the firm’s final response letter. 
• Firms should explain why they are making the offer and provide relevant supporting information.
• The customer must accept the offer and firms must resolve the complaint without the need for further investigation.​

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