From 1st July the Council of Mortgage Lenders is integrated into a new trade association, UK Finance. For the time being, all UKF mortgage information will continue to be published on this website, and UKF member-only mortgage information will only be available here.

UK Finance represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation takes on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association. Please go to www.ukfinance.org.uk for wider content and updates from UK Finance.

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The Financial Ombudsman Service plans and budget for next financial year (2017/18) - consultation

Last updated: 17 Jan 2017

Consulting body:
Financial Ombudsman Service
Status:
Closed
Period of consultation:
Runs from 14 December 2016 to 31 January 2017
CML action:
Response submitted

The Financial Ombudsman Service (FOS) has published its proposed plans and budget for the next financial year (2017/2018) for public consultation – together with an update on complaints and casework for the current financial year.  

They expect to handle a record number of PPI complaints and a consistent level of general casework.

The proposals to manage and fund this workload include:

  • freezing the case fee paid by business at £550 for the fifth year running - businesses pay a case fee only after their 25th case, which means 99% of businesses will continue to pay no case fee at all;
  • freezing the compulsory jurisdiction levy at £24.5m and funding three-quarters of its workload through the group-account charging arrangement that covers the eight largest businesses responsible for the most complaints; and
  • a proposed total operating income of £276.6m.

CML response

The UK financial services industry is undergoing a prolonged period of uncertainty and change. We, therefore, welcome the opportunity to respond the Financial Ombudsman Service’s (FOS) consultation paper on its Plans and Budget for 2017/18.

We note that mortgage products have a particularly long life; with the majority distributed through an intermediary channel.

Selling mortgage loans is common in the mortgage industry and lenders may use mortgage servicers (also known as third party administrators) to collect loan payments. This can make investigations into complaints complex and time consuming.

Read the full CML response to this consultation below.