The Financial Ombudsman Service (FOS) has opened a consultation on the interest rate applied to the compensation awarded to consumers.
Announced today (4 June), the FOS said this is the first step in the organisation's response to its joint call for input with the Financial Conduct Authority which sought views on how to modernise the dispute resolution system. The Ombudsman confirmed that further proposals will be brought forward in the summer. Currently, if a client is found to have lost out because of their financial firm's errors, the FOS can order the business to pay compensation, plus interest. There are different types of interest businesses can be directed to pay, and one of these compensates consumers for ...
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