{
  "id": 6150880,
  "title": "Banks ombudsman on the hook for millions in legal fees to Barclays and Santander",
  "url": "https://urgent.news/2026/09/07/banks-ombudsman-on-the-hook-for-millions-in-legal-fees-to-barclays",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-07T15:47:45.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/banks-ombudsman-on-the-hook-for-millions-in-legal-fees-to-barclays-and-santander/"
  },
  "original_language": "en",
  "account": "The UK's banks ombudsman, Financial Ombudsman Service (FOS), may owe millions in legal fees to Barclays, Natwest, Santander, and Vanquis Bank after a High Court decision overturned the ombudsman's rulings on overdrafts and credit cards. The court found the FOS made a \"fundamental error of law\" by attempting to expand its time-barred jurisdiction over historical lending relationships. The FOS sought to bypass the standard six-year limit on complaints, arguing that every day a bank failed to fix an unfair credit deal counted as a new event, resetting the six-year clock. The banks' legal fees could top £2 million, with Barclays facing the largest share at 92% of the costs, followed by Vanquis at 100%, Natwest at 100%, and Santander at 100%. The government has launched a clampdown on the FOS to ensure it operates as an impartial dispute-resolution service, planning to introduce a 10-year time limit for complaints and giving the FCA the ability to make exceptions.",
  "summary": "The UK’s banks ombudsman could be forced to pay millions to a group of the UK’s top lenders after the High Court quashed four decisions the body made earlier this year on overdrafts and credit cards. The Financial Ombudsman Service (FOS) has been put on the hook for what could top £2m in legal fees after the court [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}