The consumer complaints body the Financial Ombudsman Service is to increase its maximum compensation award from £375,000 to £415,00 from 1 April.
The FOS received the go ahead to raise the award limits from the FCA this week.
The limit is the maximum that financial businesses can be ordered to pay when the FOS, the body that handles consumer complaints about financial businesses, upholds grumbles.
The limits are adjusted each year in line with CPI inflation, the FOS said.
From 1 April the award limits will rise to:
- £415,000 for complaints referred to the FOS on or after 1 April 2023 about acts or omissions by firms on or after 1 April 2019
- £190,000 for complaints referred to the FOS on or after 1 April 2023 about acts or omissions by firms before 1 April 2019
Different limits apply depending on when the complaint was brought to to the FOS. Details of current and previous limits are here: understanding compensation.
The FOS website will be updated from 1 April to reflect the changes.
The FOS service is free for consumers with over 1m complaints typically received annually by the Ombudsman.
Consumers can complain about most financial products including investments and pensions and mortgages and also about financial advice.