Pressure is rising for an inquiry into the Financial Ombudsman Service (FOS) ‘failings’ around ‘mishandled complaints’.

Treasury Select Committee chairwoman Nicky Morgan has written to the chief executive of the FOS Caroline Wayman seeking assurances that capacity issues “have not led to poor decision making”. Morgan said she wants an update on the progress of an internal inquiry within two weeks.

Speaking to an undercover reporter for Channel 4’s Dispatches programme, an employee described how investigators had been “churning” out decisions to meet steep targets, adding that it was “not feasible” to handle all complaints.

The watchdog has insisted that the documentary “gives an unfair impression” of its work.

The Consumer Credit Trade Association (CCTA) insisted that lenders “face the same issues” as consumers when dealing with the Ombudsman.

The association’s chief executive Greg Stevens said: “There are a large number of claims upheld with little proof from the consumer. If you look at it like a pair of scales, they tilt one way and then the other. Both consumers and the industry are facing massive inconsistencies.”

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