Firms pay for distress under FOS rules

The Financial Ombudsman Service (FOS) has clarified its position over additional awards to consumers found to have suffered distress, inconvenience or other non-financial loss at the hands of financial services firms. In a new technical note, the FOS says that in addition to its authority to require firms to compensate consumers for any financial loss in upholding a complaint, it will also consider whether firms should pay additional compensation for the pain and suffering or damage to reputation or distress or inconvenience caused as a result of a firm’s actions.