Reduced workloads result in FOS job losses
May 27, 2008
In a recent report the Financial Ombudsman Service has announced that it will be cutting back on staff number as a result of expected reduced workloads in relation to mis-sold endowment policies, complaints about which have been flooding in over the past couple of years. According to reports these complaints are now starting to die down, and therefore the workload at the Financial Ombudsman Service is expected to be dramatically reduced as a result of this.
In 2005 the number of complaints relating to mis-sold endowment policies reached a peak, with staff at the agency dealing with around seventy thousand complaints in that one year alone. Close to a million complaints have been dealt with by the Financial Ombudsman Service with regards to mis-sold endowment policies, but this year the number of complaints relating to this issue has fallen to below thirty thousand, reflecting the reduced need for staff to deal with these complaints.
One official from the Financial Ombudsman Service stated: “We are not processing the hundreds of thousands of endowment mortgage disputes since 2005.” It is thought that the Financial Ombudsman Service will soon be arranging consultations with the staff council so that details about the job losses can be discussed further.
It is estimated that around a quarter of the Financial Ombudsman Service’s workforce will lost their jobs as a result of these reduced workloads, despite the many bank charge complaints that the service continues to deal with. Officials from the service are hopeful that many of the job losses will be through voluntary redundancy. If banks decide to reduce their bank charges, as some have already done, this could further reduce the workload for the Financial Ombudsman Service, state some officials.
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