💨 Abstract

The Financial Ombudsman Service (FOS) is proposing to change compensation interest rates, linking them to the Bank of England base rate plus one percentage point due to a surge in consumer complaints. The consultation follows a 49% increase in complaints from the second half of 2024 compared to 2023. Currently, the FOS imposes an 8% interest rate for compensation delays, but seeks to update this to better reflect market conditions.

Courtesy: www.thesun.co.uk