FOS freezes case fees for second year

Firms must start paying the fee for every case referred to the Ombudsman by consumers beyond the three free case limit. The FOS generates about 80% of its operating income from case fees. It has also frozen at £20.5m the amount it will raise through levies in 2011/12. However the service has warned firms to prepare for an industry-wide additional levy of £25m to deal with soaring complaints about payment protection insurance (PPI). The levy, raised and collected by the FSA, will fall on the "compulsory jurisdiction". This includes all firms authorised or registered by the FSA, i...