Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of whether DISP guidance is sufficient to ensure that Financial Ombudsman Service ombudsmen document and address Consumer Rights Act 2015 unfair contract terms arguments raised by complainants.

The Financial Ombudsman Service (FOS) is an independent non-governmental body. The rules on how the FOS should handle complaints are set out in the Dispute Resolution (DISP) rules in the Financial Conduct Authority’s (FCA’s) Handbook.

How ombudsmen document their decisions is a matter for the FOS, acting in line with the legislative framework and the DISP rules. The current DISP guidance requires the FOS to take into account relevant law and regulations when considering what is fair and reasonable in all the circumstances of the case. This includes the Consumer Rights Act 2015 and its provisions on unfair contract terms, where relevant.

The Government has introduced legislation as part of the Financial Services and Markets Bill to reform the legal framework in which the FOS operates, to increase consistency and clarity of decision-making, helping people resolve disputes more quickly and with greater certainty. This includes placing an obligation on the FOS and FCA to publish joint thematic reports that will provide useful information and clarification on how the FOS will consider certain types of complaint.