FOS disputes becoming more combative

The Financial Ombudsman Service (FOS) has revealed that consumers and businesses are digging their heels in over disputes forcing it to make a greater number of decisions.

According to Natalie Ceeney, chief executive and chief ombudsman at the regulator, the not so welcome trend has developed as a response to tough economic times.

"A hardening of attitudes on both sides means that disputes are becoming more hard-fought," she says.

"Some businesses are clearly taking a more legalistic approach, consumers are increasingly less willing to concede, and there is a growing reluctance to reach agreement.

"As a result, a larger proportion of the cases referred to us are those that are particularly complex and difficult to resolve - with increasing numbers of disputes requiring final ombudsman decisions as the last stage of the process," she adds.

However, Cheeney also believes there are some positive results beginning to show as complaints relating to banking and investment are levelling off - or falling very slightly.

"Of course, the reason for that may simply be seasonal," she says.

"But it may be an encouraging sign of a change we've been hoping for - that some businesses are starting to deal with complaints more effectively, at an earlier stage."