Research of around 100 cases conducted by academics found that some cases were marked as successful, claiming this occurred “even when the complaint was essentially rejected and either no additional compensation or tokenistic compensation was awarded”.
Academics estimated the success rate of complaints was around 24%, rather than the 37% rate reported by the FOS for 2023-2024.
An academic who led the study suggested there was a “significant gap” between the FOS’s reported figures and actual outcomes experienced by complainants.
They said this could “undermine public trust in an essential consumer protection body”.
The academics also said some complainants received “token amounts” of compensation in some upheld cases of around £50 to £300.
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The FOS rejected the findings.
A Financial Ombudsman Service spokesperson said: “We strongly refute the claims made by this research which looked at just 99 cases – less than 0.05% of our annual caseload – and fails to recognise that an answer from our service provides clarity to both consumers and businesses.
“A response from our free, easy-to-use service helps empower consumers who can feel confused, stressed and out of their depth. We bring closure to difficult situations, providing legally binding decisions that enable both parties to move on.”
They added: “Each year the Financial Ombudsman Service helps thousands of people settle disputes with businesses, awarding millions of pounds back in redress and compensation.
“Whilst not everyone will agree with our findings, we are committed to providing answers which are fair and reasonable.”
Mortgage Solutions also understands that some complaints are resolved informally and not included on the FOS website, while others result in non-financial outcomes such as a customer having their credit file corrected.
Some complainants are seeking reassurance that the same will not happen to others and the FOS assesses each case to determine what redress is appropriate.
For the first half of this year, the FOS reported a fall in complaints about mortgages and home finance, totalling 3,685, while disputes about banking and credit services almost doubled to 101,031.
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: FOS rejects claim it inflates complaint success rate.
