Apfa has called on the Financial Ombudsman Service to charge a fee to all claims management firms when they submit a claim.
In its response to FOS’s annual plan and budget for 2014/15, published last month, Apfa says it welcomes proposals to keep the levy, standard case fee and number of free cases at the same levels as for 2013/14.
But Apfa director general Chris Hannant says it wants FOS to change the rules so that all claims firms contribute “a fair share” to the provision of the ombudsman and to deter “frivolous” claims.
He says: “Claims firms make substantial amounts of money from what should be a free service to consumers.
“Therefore, we think they should be obliged to make some contribution to the cost of that service, rather than it being borne in full by the financial services industry. Introducing a fee should also encourage a more careful validation process before claims are submitted, rather than the scattergun approach we’re hearing about now.”
He adds: “It will discourage frivolous and in some cases fraudulent claims, and ensure the cost burden is allocated appropriately.”
In its 2014/15 plan and budget, the FOS says it will no longer charge firms an extra £350 for payment protection insurance claims, and will keep the industry levy at its current level of £23.3m.