The Financial Ombudsman Service’s (FOS) customer backlog is decreasing and the situation “seems to be improving”, FOS chair Zahida Manzoor has said.
According to the FOS, it has reduced the backlog from 90,000 cases as at May 2021 to around 37,000 as at March 2022.
Manzoor shared the information at a session of the Treasury Select Committee today (14 March).
FOS chief executive and chief ombudsman Abby Thomas, who is only six months into her role, also gave evidence.
She told MPs she is “very impressed of the quality of work” the FOS has delivered and its “decision making”.
Thomas took over the role at the FOS from Nausicaa Delfas, who acted as interim chief executive and chief ombudsman.
Prior to Delfas, Caroline Wayman was chief of the FOS but she stepped down in March 2021 due to the pressure that stemmed from the unresolved complaints backlog at the time.
Despite a better performance, Thomas did admit that the FOS “needs to improve our pace which would benefit both customers and businesses”.
As a way of dealing with the backlog, the FOS has moved staff members into “more specialist teams” and Thomas said she is pleased with the progress the service is making.
Manzoor added the transition period for the new chief executives has gone well and that the FOS has a “very engaged workforce and it is a purposeful organisation”.
Thomas also noted that in the past year, the service has seen an increase of 20% to 30% of its cases being resolved in three months. For next year, Thomas said it wants to target “more ambitious numbers”.
The recent independent assessor review of the FOS said: “The service has reduced its backlog but still has someway to go in some areas to ensure a fast and efficient service from the start.”
In response to this statement, Manzoor said that by the end of the year FOS would have resolved 205,000 complaints.
Out of those 205,000 the FOS receives 4,000 complaints and then just 500 of those go to the independent assessor.
Manzoor also detailed that the FOS executive team meet up with the assessor on a quarterly basis.
Thomas said productivity at the FOS has also increased from 2022 to 2023 and that the hybrid work model implemented after Covid “has not been detrimental.”
Thomas added that hybrid working is a good fit for FOS and workers go into the office for at least two out of five working days.
Manzoor said that the FOS “has set some targets for the executive board” that are 95% of enquiries will be signposted or covered within five days.
And 90% of investigations will be resolved within three months and 90% of second stage investigations will conclude within six months.