The parliamentary commission on banking standards is calling on the Financial Ombudsman Service to incentivise banks to improve their complaint handling by urgently reforming case fees.
In its final report, published this week, the commission attacks banks’ “unacceptable” complaints handling processes, claiming they have contributed to a lack of trust in banks.
It says they do not take customers’ complaints seriously and calls for “significant improvement”.
The commission says if the FOS finds banks have handled an initial complaint well and dismisses it, the complaint fee should be waived as an incentive.
However, if the complaint was not handled appropriately and is upheld, banks should face a higher fee.
Facts & Figures Financial Planning managing director Simon Webster says: “It is a sensible idea in theory but practically it could be difficult to introduce. FOS could spend a lot of time deciding what is a legitimate well-handled complaint, which would push up costs.”
Read our full coverage of the Banking Commission’s final recommendations: