Question to the HM Treasury:

To ask Her Majesty's Government whether (1) they, or (2) the Financial Conduct Authority, approved the use by the Financial Ombudsman Service of 'mass claims' to deal with claims against consumer credit companies.

The Treasury is in regular dialogue with the Financial Ombudsman Service (FOS) including on matters relating to consumer credit affordability and redress claims.

To help alleviate the pressure on firms, the FOS currently sets the number of free cases at 25. From the 26^th complaint onwards, businesses are currently charged a £650 case fee to cover the cost of subsequent complaints brought against them, regardless of outcome. It is estimated that nine in ten businesses whose customers bring complaints to the FOS won’t pay any case fees.

It is important to note that the FOS is an independent non-governmental body which makes decisions within the statutory framework agreed by Parliament. The Government is not involved in the day-to-day operations of the FOS.

The independence of the FOS is vital to its role. Its credibility, authority and value to consumers would be undermined if it were possible for the Government to intervene in its decision making.