Laura WilesThe FOS has published a policy statement setting out its approach to charging professional representatives a fee of £250 if they wish to refer a case to its service. The new arrangements will take effect from 1 April 2025.
Professional representatives will be able to refer 10 cases to the FOS each year, after which each subsequent case will be chargeable. They will receive £175 back in credit if the case outcome is in favour of the consumer.
The new rules also mean that if a complaint referred by a professional representative is not upheld or withdrawn, the financial business against whom the complaint was made will pay a reduced fee of £475, rather than £650.
The change is aimed at making funding arrangements fairer, and to encourage professional representatives to submit better-evidenced complaints. The FOS noted that professional representatives were involved in around 47% of cases referred to it between April and December 2024.
It also highlighted that the professional status of such firms should mean that their referrals have a considerably higher success rate compared to consumers who approach the FOS without representation. However, only 26% of the cases brought by professional representatives were found in favour of the consumer, compared to 38% of those brought by consumers directly.