Energy Ombudsman wait halved, motor finance scheme heads to tribunal, FCA pulls 1,267 finfluencer ads

A run of regulator-led changes this week, mostly in the consumer's favour:
- The motor finance redress scheme has its first Upper Tribunal challenger (Consumer Voice).

• The Energy Ombudsman wait is being halved from 8 weeks to 4.
• Ofcom's auto-compensation rates went up on 1st April.
• The FCA wrapped a global Week of Action that pulled 1,267 illegal finfluencer ads.
• The Financial Ombudsman lifted its compensation cap to £455,000 and rewrote its case-fee rules.

Below the line, more detail on each.

Energy Ombudsman: 8 weeks → 4
The biggest change of the week. On 22nd April the government announced a serious reform of energy disputes:

• The wait before you can escalate to the Energy Ombudsman is being halved from 8 weeks to 4 weeks.
• The Ombudsman's average resolution time is being cut from 6 weeks to 4.- Suppliers will be forced to pay compensation when they fail to honour Ombudsman rulings. The government noted that almost 1 in 10 consumer decisions are currently implemented late or not at all.
• Automatic compensation expands to cover excessive call-wait times, unexpectedly high bills caused by un-adjusted direct debits, and suppliers who simply ignore complaints.

The implementation date depends on the SI being laid. Even before that, the political force of the announcement bites: suppliers know which way the wind is blowing. If you're in a complaint loop with British Gas, EDF, Octopus, OVO, E.ON Next or Scottish Power, this is the most consumer-friendly change to UK energy disputes in years.

Consumer Voice takes motor finance to the Upper Tribunal
Consumer Voice (represented by Courmacs Legal) filed an objection to the FCA's PS26/3 motor finance redress scheme. Their argument: the scheme understates the scale of commission-driven mis-selling, restricts eligibility too narrowly, and uses a Johnson v FirstRand benchmark that caps the per-agreement payout. The objection window closed on 27th April.

The scheme runs on. Lenders still have to start contacting customers from 30th June 2026 (post-April 2014 agreements) or 31st August 2026 (pre-April 2014). Final complaint deadline is 31st August 2027.

Martin Lewis was emphatic this week: do not wait. Filing now puts your complaint on the lender's books before any ruling lands, which is what gets you into the priority bucket if and when the methodology shifts. If you took out PCP, HP or conditional sale finance between 6th April 2007 and 1st November 2024, the complaint goes direct to your lender, and the FCA scheme is free to use.

Ofcom auto-compensation rates went up on 1st April
If your broadband or landline goes down, the engineer doesn't show, or your new service is delayed:

• Total loss of service or delayed repair: £10.34/day (was £8.40)
• Missed engineer appointment: £32.31 (was £31.63)
• Delayed start of new service: £6.46/day (was £6.10)

The scheme is voluntary for ISPs but covers about 97% of landline and 91% of broadband customers, including BT, EE, Plusnet, Hyperoptic, Sky, TalkTalk, Utility Warehouse, Virgin Media, Vodafone and Zen.

Two related changes already in force this month: the 8 to 6 week wait for the Communications Ombudsman (complaints raised on or after 8th April), and the 30-day right to leave on mid-contract price rises (which now have to be quoted in pounds and pence, not "CPI plus 3.9%"). April is the cleanest month in years to act on a telecoms gripe.

FCA Week of Action: 1,267 illegal finfluencer ads pulled
The FCA wrapped a five-day global Week of Action against illegal financial promotions on 24th April. The numbers:

• A guilty plea from a Geordie Shore cast member for promoting unauthorised investments- Criminal proceedings opened against two further individuals
• 4 targeted warning letters and 34 warning alerts
• 120 takedown requests covering 1,267 illegal adverts that had reached at least 2.3 million UK accounts
• 17 regulators worldwide running in parallel

If you put money into something pushed by a non-authorised promoter on TikTok or Instagram and lost out, that promotion was, by definition, an illegal financial promotion under section 21 of the Financial Services and Markets Act 2000. The promoter, the platform, or both could be on the hook. The FCA's warning list is the single best place to check whether a "trader", crypto promoter or BNPL recommendation is actually authorised.

Ofgem writes off up to £500m for 195,000 households
Up to £500 million in energy debt being written off for around 195,000 eligible households, rolling out in phases. You qualify if you're on means-tested benefits (Universal Credit, Pension Credit, etc.) and accumulated more than £100 in energy debt between April 2022 and March 2024. Ask your supplier directly. If they're stalling, that's exactly the kind of dispute we can help you build.

FOS reform: £455k cap, £2,000 case-fee allowance, BNPL from July
Three quieter changes to the Financial Ombudsman Service.

1. The maximum FOS can order went up by £10,000 on 1st April 2026 to £455,000 (for acts or omissions on or after 1st April 2019; £205,000 for older complaints). Most people won't hit it, but for serious mis-selling or pension complaints it matters.
2. The "three free cases" rule has gone. In its place: a **£2,000 case-fee allowance** per consumer, per year. The Ombudsman waives the standard £250 case fee charged to the firm so long as your cumulative complaints stay under £2,000 in aggregate value annually. Practical knock-on: if you have several small-value complaints against the same firm, stagger them rather than bundle them. The allowance resets each year.
3. BNPL joins FOS jurisdiction from 1st July 2026. Klarna, Clearpay, PayPal Pay in 3, Zilch and Laybuy will all be answerable to the Ombudsman. If a BNPL provider has refused to refund a missed delivery, charged late fees unfairly, or reported adverse data without notice, you'll be able to escalate at no cost.

Visa is taking AI to chargebacks
Visa processed 106 million disputes globally last year, a 35% increase since 2019. It launched six new AI tools this month, including Dispute Intelligence (predictive case analysis) and Compelling Evidence 3.0. These mostly help banks and merchants resolve disputes faster, which sounds good. The implication for consumers is that merchants now have sharper tools for defending against chargebacks too.

Tighten the evidence accordingly. For a credit-card purchase between £100 and £30,000, lead with Section 75 of the Consumer Credit Act 1974. Otherwise cite the right Visa or Mastercard reason code, with a clean timeline of the merchant's failure to deliver.

Westfield: cyber attack on the loyalty database
Westfield warned customers that a cyber attack exposed personal information linked to its loyalty programme and newsletter database. The operator hasn't confirmed exactly what was taken. At minimum that means email addresses and names, potentially purchase history and dates of birth depending on what was stored.

If you were a member, Westfield should write to you. If they don't, file a Subject Access Request under UK GDPR to find out what was held about you and whether it was affected. Where data was compromised through a controller's failure to keep it secure, you may also have a claim under Article 82 of the UK GDPR for material loss (fraud, time spent putting things right) and non-material loss (distress).

Recalls
Six new ones, two rated Serious (real risk of injury):

• Acer electric scooter: battery fire risk under normal charging. Serious, stop using
• SCUBAPRO BCD integrated weights: release mechanism can fail under load, trapping weights at depth. Serious stop using; return for replacement.
• GoodHome integrated fridge freezers (B&Q): fire risk. Book engineer visit.
• TKMaxx XO Poppy 10,000 mAh power bank: overheating fire risk. Return for refund.
• KTL Kreative Kids Jumbo Craft Box: sand may contain asbestos. Return immediately.
• Zwilling electric kettles: handle detachment under full-load lift.
• Yamaha golf cars: brake-pedal return spring corrosion.
• Sigenergy residential battery controller: firmware fault can shut down the inverter mid-cycle.
• M&S Authentic Greek Yoghurt with Vanilla: undeclared gluten.
• Saffron Pastries (multiple lines): possible rodent contamination.
• Matalan baby sleeping bags (range): check OPSS notice.

Under section 9 of the Consumer Rights Act 2015 a safety recall is usually conclusive evidence of unsatisfactory quality. You're entitled to a full refund within the first 30 days; after that, repair or replacement, with a refund if that fails. The retailer can't push you back to the manufacturer. Your contract is with them.

Also worth knowing

• FCA crypto raids: five suspect firms visited, two assets frozen. Formal enforcement expected within 30 days.
• Octopus Go short-notice hike of around 18% with 14 days' notice. Tenants and EV drivers on fixed tariffs should check their exit terms; the new 30-day right to leave on mid-contract price rises (in force from 1st April) may apply.
• Arnold Clark breach class action has been cleared at the CAT. 4.6 million affected records. Joining is free; opt-out is the default.
• ADR accreditation mandatory from 1st July 2026 for any business selling to consumers online. Retailers without an accredited scheme face Trading Standards enforcement.

Watching next week

• The Renters' Rights Act commences on 1st May.
• Tribunal timetable on the Consumer Voice challenge.
• Implementation SI for the 4-week Energy Ombudsman reform.
• Friday afternoon FCA enforcement drops, where most of the real action lands.

This article was drafted with AI assistance and reviewed by a human editor. It is general information, not legal advice for your specific situation.

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