Consumer champion quits over case logjam

THE head of the Financial Ombudsman Service (FOS) has stepped down amid a mounting backlog of complaints.

Chief ombudsman Caroline Wayman announced her resignation yesterday after Money Mail revealed how a logjam of 158,000 complaints was waiting to be cleared.

The ombudsman service, which handles financial disputes, is the last resort and hope for cheated consumers fighting for their money back.

It is understood Wayman told staff of her departure on Tuesday. She publicly announced the decision yesterday, writing on networking site LinkedIn that it had been an ‘honour and a privilege to have led the service’.

Money Mail revealed yesterday how one in six complaints were over a year old and 11,648 date back for more than two years.

Pressure had been mounting at the organisation, which was set up by Parliament in 2001, with the pandemic prompting a 50pc surge in complaints. But the issues go back years. In 2018 the Ombudsman came under fire after a Channel 4 investigation revealed staff were inadequately trained, with many ruling in favour of the banks without looking at files properly.

Earlier this year the Treasury committee expressed concern at the ‘effectiveness’ of the FOS.

Baroness Manzoor, chairman of the FOS, said: ‘Caroline’s departure comes at the end of a long career, during which time she’s played a key role in significant milestones in the service’s history.’

Gary Rycroft, a partner at solicitors Joseph A. Jones & Co, says: ‘It is unfortunate timing to lose a leader of an organisation when one is very much needed to deal with the collapse in service standards.’

INDITEX has seen profits slide 70pc after stores were forced to close.

The owner of fashion retailer Zara said that profits have plunged after surging online sales failed to negate the impact of store closures because of Covid, and weak demand.

The Spanish fashion giant, which also runs the Bershka and Pull & Bear chains, said net profits slid by 70pc to £940m in 2020, more than predicted. The slump was driven by lower sales, with total revenues falling by 28pc to £17.5bn due to closures.

Inditex’s UK stores remain shut and are expected to reopen from April 12.