Financial Ombudsman Service chief quits months after Reeves’ call for reform

The boss of the UK’s Financial Ombudsman Service (FOS) has quit, months after Chancellor Rachel Reeves said she would overhaul the public body.

Abby Thomas was set to appear in front of the Treasury Committee of MPs later this month, but her departure was announced on Thursday.

The chief executive, who had come under fire for the FOS’s role in the motor finance commission scandal, only started the role in October 2022.

The FOS is a public body offering consumer redress over disputes in the financial sector.

It has been under fire since last year, however, for taking what some finance firms consider an overly consumer-friendly stance over complaints about alleged mis-selling of car loans.

The scandal, which relates to complaints over undisclosed commissions on motor finance deals, has left several major lenders facing billions in possible compensation payments.

The FOS did not give a reason for Ms Thomas’s departure.

Ms Reeves, meanwhile, has been calling on Britain’s regulatory bodies to be taking a more company-friendly position in a bid to boost economic growth.

She said in her Mansion House speech in November that the FOS needed reform.

The Chancellor said last year: “The Financial Ombudsman Service plays a vital role for consumers to get redress when things have gone wrong, and that will not change.

“But reform is needed to create a surer climate for investment.”

The FOS said James Dipple-Johnstone, who was Ms Thomas’s deputy, will take on her chief ombudsman role on an interim basis.

Chief finance and risk officer Jenny Simmonds will cover the chief executive job until a permanent replacement is found.

Ms Thomas said: “It has been an absolute privilege to lead the Financial Ombudsman Service through this period of rapid transformation and innovation.

“I am immensely grateful to the entire ombudsman team for everything that they do to support our customers and build confidence in the financial services industry.”

The Treasury Committee is now set to question the FOS’s interim boss, Mr Dipple-Johnstone, on Tuesday.

The session was set to be focused around motor finance and Ms Thomas was initially expected to attend for the ombudsman service.