FOS to resolve 60,000 motor finance commission cases

The Financial Ombudsman Service (FOS) plans to resolve 60,000 motor finance commission cases this year, and says the clarity available from the Financial Conduct Authority (FCA) on how to resolve complaints going forward means it expects firms to provide redress to consumers without need for further Ombudsman intervention.

Overall, the FOS is aiming  to resolve 266,500 cases in 2026/27 – a 23% increase on 2025/26 – according to its newly published Plans and Budget consultation for 2026/27.  The organisation is currently undergoing the biggest transformation to its operations since its inception 25 years ago, following complaints it was operating slowly, inefficiently and becoming a quasi-regulator.

The FOS said it is working with the FCA and the government to implement changes to ensure a better focus on its core purpose as a quick and informal alternative to the courts. As part of this it will leverage new digital tools to reduce friction in the customer journey and to allow caseworkers to direct their time and expertise where it is needed most.

Following a period of significant demand, the FOS reported case volumes are stabilising, and the service expects to receive 199,000 new complaints in 2026/27, down from nearly 306,000 in 2024/25, and from around 210,000 in 2025/26. This is due to fewer motor finance commission cases and fewer complaints from professional representatives.

“We never forget that behind every case is a consumer and a business looking for an answer, so we are delivering improvements and efficiencies to ensure we remain fit for purpose and fair to all parties.

“We look forward to continuing to work with government, regulators and stakeholders to deliver a strong, impartial service which supports public confidence in financial services.”

Case fees and levies had been held flat for two years at significantly reduced levels, but the FOS said these would now increase as it responds to inflationary challenges, reduced reserves, and the cost of implementing the reforms.

From 1 April, the compulsory levy will be £86m. Respondent firms will be charged £680 per case, and professional representatives will be charged £80 for cases they refer which are found in favour of the consumer they represent. For cases which are found in favour of the firm, professional representatives will pay £260 and the firm’s case fee will reduce to £500.

Separately, the FCA has confirmed that, from 1 April 2026, award limits will (the maximum amount the FOS can require a financial business to pay when it upholds complaints) will go up to:

• £455,000 for complaints about acts or omissions by firms on or after 1 April 2019 (an increase of £10,000 on the previous year); and
• £205,000 for complaints about acts or omissions by firms before 1 April 2019 (a rise of £5,000 over the previous year).