[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Martin Lewis [@MartinSLewis](/creator/twitter/MartinSLewis) on x 3.2M followers Created: 2025-07-15 17:10:25 UTC Consumers have been sold down the river today by @financialombuds changes, sacrificed on the alter of the 'competitiveness' agenda. It has radically slashed the interest rate consumers get when they're awarded compensation having been mis-sold or mistreated by firms. - Currently it is a flat X% interest for each year since the initial event [ie non-compound interest] - It is to be replaced with (the much lower) X% above the average UK base rate over the period [still non-compound interest] This is unfair. The idea of the interest is to put someone back in the position they would have been in had they not been mistreated. The new proposal doesn't do that, as consumers could've put the funds in savings (or investments) and typically earnt well over the base rate in COMPOUND interest. While I accept the current rate is high. If the idea was to change it so it's closer to what happens in the market, then it should've been at least be X% above base rates with compound interest, as that's what happens in the real world. We suggested that as a bare minimum. All consumer groups who responded to the consultation (including @MoneySavingExp) objected to this substantial a change. All the financial firms supported it! Look what happened. XXXXXXX engagements  **Related Topics** [fed rate](/topic/fed-rate) [Post Link](https://x.com/MartinSLewis/status/1945169092874526744)
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Martin Lewis @MartinSLewis on x 3.2M followers
Created: 2025-07-15 17:10:25 UTC
Consumers have been sold down the river today by @financialombuds changes, sacrificed on the alter of the 'competitiveness' agenda. It has radically slashed the interest rate consumers get when they're awarded compensation having been mis-sold or mistreated by firms.
- Currently it is a flat X% interest for each year since the initial event [ie non-compound interest]
- It is to be replaced with (the much lower) X% above the average UK base rate over the period [still non-compound interest]
This is unfair. The idea of the interest is to put someone back in the position they would have been in had they not been mistreated. The new proposal doesn't do that, as consumers could've put the funds in savings (or investments) and typically earnt well over the base rate in COMPOUND interest.
While I accept the current rate is high. If the idea was to change it so it's closer to what happens in the market, then it should've been at least be X% above base rates with compound interest, as that's what happens in the real world. We suggested that as a bare minimum.
All consumer groups who responded to the consultation (including @MoneySavingExp) objected to this substantial a change. All the financial firms supported it! Look what happened.
XXXXXXX engagements
Related Topics fed rate