FSA plans to bump up max compensation to £150,000
The Financial Services Authority (FSA) has proposed an increase in the maximum compensation which may be awarded by the Financial Ombudsman Service (FOS) from £100,000 to £150,000.
The original limit of £100,000 was set by the Insurance Ombudsman Scheme in 1981 and was adopted by the FOS when it was set up in December 2001.
Dan Preddy, financial services dispute resolution partner at Beachcroft, commented: "Consumer groups will welcome this change and it is hard to argue with the logic that an increase was long overdue to take into account the effect of inflation over the last 19 years. It is also true that only a very small proportion of complaints lead to an award
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