FOS publishes a Consultation on introducing differentiated case fees

FOS has announced the publication of a Consultation about evolving its funding model, in essence by introducing differentiated case fees.  The proposal would see businesses pay less for complaints which are resolved earlier in the investigation process. FOS has stated that it will remain free for consumers to refer a complaint, and for charities, families and friends who may be helping them.

• Following stakeholder feedback, FOS is consulting on whether to change case fees.  The proposal forms part of the organisation’s wider transformation to ensure it is fit for the future.
• Firms pay a fixed fee of £650 for every case against them FOS investigates, regardless of the stage at which the dispute is resolved. Since 1^st April 2025, if the complaint is submitted by a professional representative and not upheld, this fee is reduced to £475. Most businesses receive three free cases a year (in 2024/25, seven in ten businesses whose customers referred complaints to FOS did not pay any case fees at all).
• The current model means all business pay the same, regardless of the stage the case reaches and how much work goes into resolving the dispute. Some businesses believe this is unfair when they are settling complaints earlier in the process.  Complaints that are closed later in the process require more work and therefore cost more than those which are resolved earlier.
• Previous feedback from stakeholders has called for a stronger “polluter pays” model where those firms found to have done something wrong contribute more towards FOS’ costs. This option would see firms pay less if FOS feels that firms have already resolved the dispute fairly themselves.
• The Consultation is seeking views on the proposal that businesses’ case fees are differentiated based on the stage at which a case is resolved (three different case fees for complaints resolved at three different key stages).  To ensure it considers all options, we are also consulting on whether case fees should be differentiated based on the complaint outcome.
• The Consultation is open until 8^th October 2025.  Please email your response and any questions about this Consultation to consultations@financial‑ombudsman.org.uk.