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Issue 20 - January 2015

The FOS Approach to terms of settlement


It is important when finalising a dispute at FOS that the terms of settlement are a clear and accurate record of the agreement between the applicant and the financial service provider (FSP). Otherwise, the resolved dispute could be jeopardised by later, further disputes about the content of those terms.

FOS expects terms of settlement to:

  • be drafted fairly with a clear scope, usually in line with one of our standard templates
  • follow our core guiding principles to protect each party’s rights
  • clearly set out the consequences of defaulting on the agreement
  • cover the FSP’s right to enter judgment on default or to restore legal proceedings, if the applicant breaches the terms.

In some disputes, we will also consider:

  • previous terms of settlement that the FSP and applicant have agreed
  • liability in third party settlements, particularly in family law cases.

You can read more about our Approach to terms of settlement here.

Visit to see all the available FOS Approach documents.