Huge change to compensation rules plotted by financial ombudsman after spike in complaints

A HUGE change to compensation rules is being plotted by the financial ombudsman after a spike in complaints.

The Financial Ombudsman Service (FOS) is proposing to change the interest rate applied to the compensation awarded to consumers, to tie it to the Bank of England base rate.

PAThe FOS is plotting a change to the way customers receive compensation[/caption]

If someone is found to have lost out because of their financial firm’s errors, the ombudsman can order the business to pay compensation, plus interest.