Tuesday, July 1, 2025
News Wave
No Result
View All Result
  • Home
  • World
  • USA
  • Business
  • Sports
  • Entertainment
  • Technology
News Wave
  • Home
  • World
  • USA
  • Business
  • Sports
  • Entertainment
  • Technology
No Result
View All Result
News Wave
No Result
View All Result
Home Business

New charges for claims management firms proposed by financial ombudsman

23 May 2024
in Business
0 0
New charges for claims management firms proposed by financial ombudsman
Share on FacebookShare on Twitter


For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails

Sign up to our free breaking news emails

Claims management companies (CMCs) face new fees of up to £250 to lodge a case, under proposals from the financial ombudsman to make costs fairer.

The Financial Ombudsman Service (FOS), which resolves complaints from consumers about financial firms, said the fee would be reduced to £75 if the case outcome is in favour of the consumer.

The service will remain free to people who bring their case directly to the service, as well as families and friends, charities, and voluntary organisations who may be helping them, the ombusdsman said.

The proposed new case fees are part of a consultation, which is open until July 4.

Businesses responding to a complaint currently pay £650 per case.

Professional representatives can play an important role in resolving financial disputes. However, they gain financially from our service without contributing to the running costs

James Dipple-Johnstone, FOS

The ombudsman said it is seeking to make its fee model fairer, by recovering some of its costs from CMCs and representatives as well as financial services firms.

As is the case for financial services firms, all professional representatives will be allowed three free cases a year, beyond that they will be charged the £250 fee, reduced to £75 if the consumer’s complaint is upheld, the service said.

Under the proposals, if the service does not uphold the complaint, the higher fee collected will be used to reduce the fee for the financial business against whom the complaint was initially raised.

James Dipple-Johnstone, deputy chief ombudsman at the FOS, said: “We are committed to improving our service so it is as easy to use and accessible as possible, while ensuring it remains free for all consumers and that those with upheld complaints can keep all of any award we make.

“Professional representatives can play an important role in resolving financial disputes. However, they gain financially from our service without contributing to the running costs, and with little incentive to ensure that claims they advance have merit.

“The new proposed charges are important to ensure we cover the costs associated with helping resolve disputes and we feel reflect a fairer allocation of those costs.

“We welcome all views on our proposed fee changes.”

The Government has started the process of exercising powers given under the Financial Services and Markets Act 2023 to allow the ombudsman service to update its current fee-charging framework.

CMCs often take a chunk of any payout awarded, but consumers keep the full value of any redress awarded when they bring cases directly to the ombudsman themselves.

Over the past two years a fifth (20%) of cases referred to the service have been brought by professional representatives, the ombudsman said.

Of these cases, fewer than a quarter resulted in a different outcome for the complainant than they were already offered by the responding firm, it said.



Source link

Loading spinner
Tags: chargesClaimsFinancialfirmsManagementombudsmanproposed
Previous Post

Consumer Industries at Cisco Live 2024

Next Post

What to Know About the UK Election on July 4

Related Posts

Is Nvidia the Top Artificial Intelligence Stock to Buy in July?
Business

Is Nvidia the Top Artificial Intelligence Stock to Buy in July?

by My News Wave
1 July 2025
0

As of mid-2025, artificial intelligence (AI) continues to dominate market trends, with significant capital expenditures anticipated for AI-related cloud computing, particularly benefitting Nvidia (NASDAQ: NVDA), a leading AI stock. Despite potential investor fatigue from AI hype, Nvidia remains a strong investment choice going into July. Explain It To Me Like I'm 5: As we get to the middle of 2025, everyone is still really excited about robots and computers that can think, especially Nvidia, a...

Read more
Amazon Wants More Power
Business

Amazon Wants More Power

by My News Wave
1 July 2025
0

In a recent podcast, Motley Fool analysts Jason Moser and Matt Argersinger, alongside host Ricky Mulvey, discuss various investment insights, while Progyny CEO Peter Anevski joins analyst Tim Beyers and benefits expert Holly Anderson to explore the company's growth trajectory. For more episodes and investment ideas, listeners are encouraged to visit The Motley Fool's podcast center and check out their top 10 stock recommendations. Explain It To Me Like I'm 5: In this podcast, some...

Read more
1 Magnificent Stock-Split Stock to Buy Hand Over Fist in July and 1 to Completely Avoid
Business

1 Magnificent Stock-Split Stock to Buy Hand Over Fist in July and 1 to Completely Avoid

by My News Wave
1 July 2025
0

Artificial intelligence has been a major driver of Wall Street's record highs, but excitement around stock splits in influential companies has also played a significant role. Stock splits allow companies to adjust their share price and outstanding shares without impacting their market capitalization or operations, influencing investor perception and market dynamics. Explain It To Me Like I'm 5: Wall Street is excited about stock splits, which are like a company deciding to cut its pizza...

Read more
What Are the 5 Best Pipeline Stocks to Buy Right Now?
Business

What Are the 5 Best Pipeline Stocks to Buy Right Now?

by My News Wave
30 June 2025
0

The pipeline sector presents a compelling investment opportunity with high yields and stable growth, particularly as natural gas demand surges due to LNG exports and AI data centers. Notable stocks in this space include Energy Transfer, Enterprise Products Partners, Western Midstream, The Williams Companies, and Genesis Energy, each offering unique advantages, with Energy Transfer significantly increasing its growth capital expenditure to enhance natural gas infrastructure. Explain It To Me Like I'm 5: The pipeline sector...

Read more
Did Nike's Turnaround Just Begin?
Business

Did Nike's Turnaround Just Begin?

by My News Wave
30 June 2025
0

Nike (NYSE: NKE) experienced a significant 16% stock surge following its fiscal fourth-quarter earnings report, marking its largest one-day gain in several years. Despite a 12% revenue decline to $11.1 billion and a drop in earnings per share to $0.14, the company exceeded expectations, particularly with its optimistic guidance for the upcoming fiscal year. Explain It To Me Like I'm 5: Nike's stock went up a lot after they shared news that made people think...

Read more
Why Robinhood Stock Is Soaring Today
Business

Why Robinhood Stock Is Soaring Today

by My News Wave
30 June 2025
0

Shares of Robinhood Markets (NASDAQ: HOOD) surged 12.1% on Monday, coinciding with a 0.3% increase in the S&P 500 and Nasdaq Composite. The rise follows Robinhood's announcement of launching commission-free tokenized trading in the E.U., enabling customers to trade over 200 U.S. stocks and ETFs, including Nvidia and Apple, outside traditional trading hours. Explain It To Me Like I'm 5: Robinhood's stock is going up because they are letting people in Europe trade American stocks...

Read more
News Wave

News Summarized. Time Saved. Bite-sized news briefs for busy people. No fluff, just facts.

CATEGORIES

  • Africa
  • Asia Pacific
  • Australia
  • Business
  • Canada
  • Entertainment
  • Europe
  • India
  • Middle East
  • New Zealand
  • Sports
  • Technology
  • UK
  • USA
  • World

LATEST NEWS STORIES

  • Trump tariffs have delayed interest rate cuts, Federal Reserve Chair Jerome Powell says
  • Ugly Sonic Returns as Images of Early Test Footage Surface, Reigniting a Pop Culture Phenomenon
  • Nothing Phone 3 arrives July 15 with a tiny dot matrix rear display
  • About Us
  • Disclaimer
  • Privacy Policy
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact Us

Copyright © 2025 News Wave
News Wave is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • USA
  • Business
  • Sports
  • Entertainment
  • Technology

Copyright © 2025 News Wave
News Wave is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In