FOS funding nears crisis point; Levy hike looms

The Ombudsman warned in January the decision among some firms, including large high street banks, not to pay up when receiving an unfavourable ruling over PPI could cripple it "in six weeks". To continue day-to-day operations, the Ombudsman could be forced to pass the cost onto the whole industry - not just PPI sellers - via an emergency interim levy, similar to that issued by the FSCS in January to pay for a series of investment firm failures. Annually, the cost of dealing with soaring PPI claims could send firms' FOS levy for 2011/12 as much as 25% higher, the Ombudsman has said.  ...