Why is the FOS so Slow?

The Financial Ombudsman Service (FOS) is an independent organization in the United Kingdom that resolves disputes between consumers and financial services companies. It was established in 2000 and is funded by the financial services industry, which means that its services are free to consumers.

While the FOS is an important resource for consumers who are having issues with their financial service providers, it has faced criticism in recent years for being slow to resolve complaints. According to data from the FOS, the average time it takes to resolve a complaint is currently around eight months, which is a significant increase from previous years.

There are several reasons why the FOS has become slower in recent years. One of the main reasons is an increase in the number of complaints being received. Between 2016 and 2021, the number of complaints received by the FOS increased by around 50%. This increase in volume has put a strain on the FOS's resources and has made it more difficult to resolve complaints in a timely manner.

Another reason for the slowness of the FOS is the complexity of some of the complaints it receives. Many of the complaints that the FOS deals with are complex and involve a large amount of information and documentation, which can take time to review and assess. Additionally, some complaints involve multiple parties and can require negotiations and discussions with multiple parties, which can further delay the resolution process.

The slow resolution of complaints can be frustrating for consumers who are seeking a resolution to their issue. It can also be financially damaging, as many consumers are seeking compensation for financial losses or other damages. While the FOS does have the power to award compensation to consumers, the long resolution process means that many consumers may have to wait a significant amount of time to receive any compensation.

There are steps that the FOS is taking to try to improve its speed and efficiency. These include increasing its staff and resources, improving its technology and processes, and working with the financial services industry to resolve disputes more quickly. However, it is likely to take time for these efforts to have a significant impact on the speed of the FOS's resolution process.

In conclusion, the Financial Ombudsman Service is an important resource for consumers in the UK who are having issues with their financial service providers. However, the service has faced criticism in recent years for being slow to resolve complaints, which can be frustrating and financially damaging for consumers. While the FOS is taking steps to improve its speed and efficiency, it is likely to take time for these efforts to have a significant impact.