The Financial Ombudsman Service (FOS) will be changing the interest rate applied to the compensation awarded to consumers.
Confirmed today (15 July) following a consultation earlier this summer, the interest applied to some awards the Ombudsman directs financial service firms to make is being revised to track the Bank of England's base (average) rate +1%. This will be calculated as a weighted average over a period from when the money was due (i.e. when the loss to the consumer occurred) until the date the redress payment is made. "Awards will still reflect any actual losses the consumer has suffered, as now," the FOS confirmed. The FOS said it consulted on a range of interest options after feedback fro...
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