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FEES 5.5B Case fees

Application

FEES 5.5B.1R
FEES 5.5B.2G

VJ participants are included as a result of DISP 4.2.6 R.

FEES 5.5B.3R

Any firm falling into either industry block 13 or industry block 15 in FEES 5 Annex 1 R is not required to pay any case fee in respect of chargeable cases relating to those industry blocks.

FEES 5.5B.4G

The firms in industry blocks 13 and 15 are cash plan health providers and small friendly societies. The case fee exemption takes into account that the amount in issue is likely to be small relative to the case fee. Instead, the full unit cost of handling complaints against these firms will be recovered through the setting of the relevant general levy.

FEES 5.5B.5R

A credit union which is subject to the minimum levy in an industry block is not required to pay any case fee in respect of chargeable cases relating to that industry block.

FEES 5.5B.6G

Arrangements similar to those for firms in industry blocks 13 and 15 have been made for small credit unions under FEES 5.5B.5 R.

FEES 5.5B.7R
  1. (1)

    Any of the following persons which is exempt under DISP 1.1.12R is also exempt from FEES 5.5B:1

    1. (a)

      a firm;1

    2. (b)

      a payment service provider;1

    3. (c)

      an electronic money issuer; 2

      1
    4. (d)

      a designated credit reference agency; and2

      1
    5. (e)

      2a designated finance platform.

  2. (2)

    However, a person will only be exempt from FEES 5.5B in any financial year if it met the conditions in DISP 1.1.12R on 31 March of the immediately preceding financial year.1

Purpose

FEES 5.5B.8R

The purpose of FEES 5.5B is to set out the requirements on respondents to pay fees in relation to cases referred to the Financial Ombudsman Service.

FEES 5.5B.9R

These fees are towards funding the Financial Ombudsman Service, and are invoiced and collected directly by the FOS Ltd.

FEES 5.5B.10G

In each of the Financial Ombudsman Service's jurisdictions, the annual budget reflects the total expected to be raised by levies plus the total expected to be raised by case fees for the relevant financial year.

FEES 5.5B.11G

The amount of the case fees will be subject to consultation each year.

Standard case fee

FEES 5.5B.12R

A respondent must pay to the FOS Ltd the standard case fee specified in FEES 5 Annex 3R Part 1 in respect of each chargeable case relating to that respondent which is closed by the Financial Ombudsman Service, unless the respondent is identified as part of a charging group as defined in FEES 5 Annex 3R Part 3.

FEES 5.5B.13G

The exclusion of respondents that are identified as part of a charging group as defined in FEES 5 Annex 3R Part 3 applies only from 1 April 2013. Those respondents continue to be liable for the standard case fee under FEES 5.5B.12 R in respect of chargeable cases closed by the Financial Ombudsman Service before 1 April 2013.

FEES 5.5B.14R

But a respondent will only be liable for, and the FOS Ltd will only invoice for, the standard case fee in respect of the 26th and subsequent chargeable cases in any financial year.

FEES 5.5B.15G

Until 31 March 2004 a standard case fee was payable for every chargeable case. From 1 April 2004 to 31 March 2005 the standard case was payable for the third and subsequent chargeable cases. From 1 April 2005 to 31 March 2013 the standard case fee was payable for the fourth and subsequent chargeable cases. FEES 5.5B.12 R does not apply retrospectively to financial years before 1 April 2013.

FEES 5.5B.16R

A respondent must pay to the FOS Ltd any standard case fee which it is liable to pay under FEES 5.5B and which is invoiced by the FOS Ltd within 30 calendar days of the date when the invoice is issued by the FOS Ltd.

Supplementary Case fee

FEES 5.5B.17R

A respondent must pay to the FOS Ltd the supplementary case fee specified in FEES 5 Annex 3R Part 2 in respect of each chargeable case (PPI) relating to that respondent which is referred to the Financial Ombudsman Service, as well as any standard case fee under FEES 5.5B.12 R, unless the respondent is identified as part of a charging group as defined in FEES 5 Annex 3R Part 3.

FEES 5.5B.18G

The exclusion of respondents that are identified as part of a charging group as defined in FEES 5 Annex 3R Part 3 applies only from 1 April 2013. Those respondents continue to be liable for the supplementary case fee under FEES 5.5B.17 R in respect of chargeable cases (PPI) referred to the Financial Ombudsman Service before 1 April 2013.

FEES 5.5B.19R

Notwithstanding the above, a respondent will only be liable for, and the FOS Ltd will only invoice for the supplementary case fee in respect of the 26th and subsequent cases relating to that respondent that fall within 4FEES 5.5B.17 R4 in any financial year.

Special case fee

FEES 5.5B.20R

If the respondent is identified as part of a charging group as defined in FEES 5 Annex 3R Part 3, the charging group must pay the special case fee calculated under FEES 5 Annex 3R Part 4 (from 1 April 2013) instead of the respondent paying the standard case fee or the supplementary case fee.

FEES 5.5B.21R

The FOS Ltd:

  1. (1)

    will invoice the special case fee as described in FEES 5 Annex 3R Part 4; and

  2. (2)

    may invoice the relevant charging group through any of the individual respondents in the relevant charging group.

FEES 5.5B.22R

A charging group must pay to the FOS Ltd any special case fee (including any year-end adjustment) as described in FEES 5 Annex 3R Part 4 within 30 calendar days of the date when the invoice is issued by the FOS Ltd.

FEES 5.5B.23R

In respect of the special case fee, individual respondents are jointly and individually liable for the obligations of the charging group of which they are identified as forming part in FEES 5 Annex 3R Part 3.

Leaving the Financial Ombudsman Service

FEES 5.5B.24R

Where a respondent ceases to be a firm, payment service provider, electronic money issuer, CBTL firm, 5a designated credit reference agency, a designated finance platform 2 or VJ participant (as the case may be) part way through a financial year it will remain liable to pay case fees under FEES 5.5B in respect of cases within the jurisdiction of the Financial Ombudsman Service.

14

Late payment and remission of case fees

FEES 5.5B.25R

If a respondent does not pay a case fee payable under FEES 5.5B in full to the FOS Ltd before the end of the date on which it is due, that respondent must pay to the FOS Ltd in addition:

  1. (1)

    an administrative fee of £250; plus

  2. (2)

    interest on any unpaid amount at the rate of 5% per annum above the Official Bank Rate from time to time, accruing on a daily basis from the date on which the amount concerned became due.

FEES 5.5B.26G

The FOS Ltd may take steps to recover any money owed to it (including interest).

FEES 5.5B.27R

If it appears to the FOS Ltd that in the exceptional circumstances of a particular case the payment of any case fee under FEES 5.5B would be inequitable, the FOS Ltd may (unless FEES 5.5B.29 R applies) reduce or remit all or part of the case fee in question which would otherwise be payable.

FEES 5.5B.28R

If it appears to the FOS Ltd that in the exceptional circumstances of a particular case to which FEES 5.5B.27 R does not apply the retention by the FOS Ltd of any case fee which has been paid would be inequitable, the FOS Ltd may (unless FEES 5.5B.29 R applies) refund all or part of that case fee.

FEES 5.5B.29R

The FOS Ltd may not consider a claim under FEES 5.5B.27 R and/or FEES 5.5B.28 G in respect of any amount overpaid due to a mistake of fact or law by the payer, if the claim is made by the payer more than 2 years after the beginning of the financial year to which the payment relates.