Think tank brands Financial Ombudsman Service 'unfit for purpose' in damning report

Questions over fairness

The Financial Ombudsman Service (FOS) has been branded unfit for purpose in a scathing report from the Institute of Economic Affairs (IEA) which questions the fairness of its decisions and says the organisation is failing consumers.

The think tank's report said the FOS needs "major reform" and is not meeting its primary objectives of providing fair and reasonable dispute resolution at speed. It also said it was not good value for money and failed to meet its aim of "supporting competition and consumer welfare". Chief executive and chief ombudsman Caroline Wayman resigned from the service earlier this month after seven years leading the FOS. The IEA said she stepped down amid a mounting backlog of "complaints and controversy over levels of compensation".   It added new leadership would be unlikely to change its...