# Coalition Warns of Catastrophic Changes to Financial Ombudsman Service Martin Lewis and fifteen organizations urge ministers to reconsider legislative reforms to consumer redress. - **Source:** [Daily Express :: Finance Feed](https://www.express.co.uk) - **Published:** 2026-11-09 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/17793df7-e1a2-4c93-9a7b-e80a98709123 ## Broad Coalition Challenges Reforms Martin Lewis's Money Saving Expert has joined fifteen prominent organizations, including Which? and Citizens Advice, to oppose proposed changes to the Financial Ombudsman Service. This diverse bloc warns that legislative adjustments within the Financial Services and Markets Bill could create catastrophic outcomes, effectively locking consumers out of free, independent dispute resolution services. ## Current Redress Mechanism Threatened The Financial Ombudsman Service currently provides a free, impartial route for consumers to resolve disputes with financial firms. Its decisions are binding, forcing companies to offer compensation or fix mistakes without requiring costly court action. Critics argue that the proposed reforms threaten this vital safety net, potentially leaving vulnerable households without recourse. ## Concerns Over Two-Tier Justice Which? has expressed significant concern that the reforms could create a two-tier justice system for claimants. Specifically, individuals with complaints predating the July 2023 Consumer Duty might face harder battles for redress. The coalition fears that tens of thousands of submissions could be negatively impacted by these complex new regulatory standards. ## Shift in Decision-Making Power The proposed Bill introduces a more complex system for determining complaints, shifting away from an impartial fairness test. The coalition argues that the new framework presumes firms are initially in the right, creating an uphill battle for consumers. Furthermore, a new referral mechanism could strip the Ombudsman of its necessary decision-making discretion. ## Political Accountability and Tests Former Labour MP Yvonne Fovargue has criticized the reforms, suggesting they fail the Prime Minister’s Makerfield Test. This test, championed by Andy Burnham, aims to ensure government policies do not disadvantage forgotten communities. Critics argue that making it harder for ordinary people to obtain fair redress contradicts these stated political commitments. ## Regulatory Friction and Delays The Financial Conduct Authority has also voiced reservations, warning that the proposed changes risk gumming up the system. By introducing additional layers of complexity, the reforms could lead to significant delays and increased stress for consumers. The coalition insists that the government must urgently rethink its approach to these essential market protections. ## Government Defense of Reforms A Treasury spokesperson maintains that the reforms will strengthen, rather than weaken, the Financial Ombudsman Service. The government claims the changes are designed to provide greater consistency and certainty for both consumers and financial firms. They assert that the Ombudsman will continue to operate as an independent and impartial body during disputes. ## Implications for Consumer Rights The outcome of this legislative battle will determine the future accessibility of consumer justice in the UK. If the reforms proceed as planned, the balance of power between powerful financial institutions and individual consumers may shift significantly. Observers are now watching to see if the government will adjust its strategy following this pressure. ## Sources covering this story - https://www.express.co.uk/finance/personalfinance/2264014/martin-lewis-mse-joins-financial-law-change-warning — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._