Between April and December 2024, around 47% of complaints submitted to the Financial Ombudsman Service were from professional representatives – but only 26% of cases brought by professional representatives were found in favour of the consumer, compared with 38% of those brought directly by consumers for free.
Currently, financial service firms pay a £650 case fee for complaints against them that the FOS investigates, while professional representatives do not pay a case fee.
James Dipple-Johnstone, interim chief ombudsman at the FOS, said: “We’ve seen more cases brought by professional representatives, but fewer of these cases leading to a better outcome for their clients.
Professional representatives will be able to bring 10 cases to the service for free each financial year, the FOS said.
A significant proportion of complaints referred to the dispute resolution service in recent years have been driven by professional representatives who either charge consumers or take a percentage of any redress awarded, according to the FOS.
