New FOS fee adds insult to injury for scam victims – but there’s a better way

In what many legal experts are calling a troubling development for financial justice, the Financial Ombudsman Service (FOS) has introduced a £250 fee for claims submitted through legal representatives. This new charge, which came into effect recently, disproportionately impacts victims of fraud who have already suffered financial losses and now face an additional barrier when seeking professional help to recover their money.

A tax on justice for those already victimised

The introduction of this fee is particularly problematic for victims of Authorised Push Payment (APP) fraud. These individuals have already experienced the financial and emotional trauma of being scammed – often losing life-changing sums of money. To then impose an additional £250 charge simply for exercising their right to professional representation seems not only unfair but potentially obstructive to justice.

Consider that many APP fraud victims have lost substantial portions of their savings or pension funds. The parliamentary report “Authorised Push Payment Fraud – Who Bears the Burden?” revealed that the average loss per case is approximately £2,000, with many victims losing significantly more. For someone who has just lost thousands of pounds to sophisticated fraudsters, an additional £250 fee can be the difference between pursuing their case or simply giving up.

Banks’ approach to claims often necessitates expert help

The reality is that many banks continue to resist fraud reimbursement claims, despite the introduction of the mandatory reimbursement requirement in October 2024. As the parliamentary report highlighted, some institutions appear to be adopting “a policy-based approach of rejecting legitimate claims from the outset.”

In this challenging environment, professional legal representation often becomes necessary rather than optional. Solicitors who specialise in APP fraud recovery understand the complexities of the reimbursement process, including:

• The specific evidence requirements that strengthen a claim
• Common rejection reasons used by banks and how to counter them
• The procedural requirements for a successful FOS complaint
• The timeline constraints that must be adhered to

APP Claims covers the FOS fee for clients

At APP Claims, we understand that fraud victims have already suffered enough financial hardship. That’s why we’ve made the decision to cover the £250 FOS fee for all clients whose cases we take on. This commitment ensures that this new financial obstacle doesn’t prevent deserving cases from receiving proper consideration.

Our approach is simple: if we believe in your case enough to represent you, we’ll invest in it by covering this fee. This aligns with our No Win, No Fee model – we only succeed when our clients succeed, and we don’t believe in adding financial burdens to people who have already been victimised.

A concerning trend in access to justice

The introduction of this fee should be viewed within the broader context of challenges facing APP fraud victims:

1. The reduction of the maximum reimbursement amount from £415,000 to £85,000 after banking industry lobbying
2. The five-day processing requirement for claims that many banks appear to be failing to meet
3. The limited regulatory enforcement action against non-compliant financial institutions
4. The disparity in reimbursement rates between different banks, with some paying out on less than 10% of claims

Each of these factors already makes seeking reimbursement a challenging process. Adding a £250 fee for professional representation further tilts the playing field against fraud victims.

Professional representation matters

The value of professional representation in APP fraud cases cannot be overstated. The parliamentary report revealed that banks are taking an increasingly adversarial approach to claims, with some requiring inappropriate levels of proof or misapplying exemptions to avoid paying legitimate claims.

In this environment, having an expert in your corner who understands both the letter and spirit of the reimbursement regulations can make the difference between success and failure. Solicitors specialising in APP claims can:

• Identify the strongest legal arguments for your specific case
• Present evidence in the most compelling format
• Challenge inappropriate rejections with reference to regulatory guidance
• Navigate the appeals process effectively when necessary

A commitment to supporting fraud victims

Despite the introduction of this new fee, APP Claims remains committed to providing accessible legal support to victims of financial fraud. By covering the £250 FOS fee for our clients, we’re ensuring that this additional obstacle doesn’t prevent deserving cases from being properly heard.

If you’ve fallen victim to an APP scam and been denied reimbursement by your bank, contact APP Claims for a free assessment of your case. We’ll evaluate your claim based on its merits, and if we take your case on, we’ll cover the FOS fee as part of our commitment to making justice accessible to fraud victims.

In a system that seems increasingly stacked against the victims of sophisticated financial crime, having a dedicated advocate who understands both the legal landscape and the human impact of fraud can make all the difference. At APP Claims, we’re proud to be that advocate for our clients.

APP Claims specialises in helping victims of Authorised Push Payment fraud recover their money when banks initially refuse reimbursement. We operate on a No Win, No Fee basis and cover the £250 FOS fee for all clients whose cases we take on who we progress to a FOS claim. We recover £175 of this fee from FOS if we are successful, with the remaining £75 taken from what we get awarded for our client.