The Treasury Select Committee has criticised the Financial Ombudsman Service for the way in which the departure of its former Chief Ombudsman and CEO Abby Thomas was handled.

Financial Ombudsman Service chair Baroness Manzoor today announced she would be stepping down in August - just days after FOS CEO Abby Thomas quit the organisation.

Abby Thomas, CEO and Chief Ombudsman at the Financial Ombudsman Service, has exited the organisation this week in a shock departure.

The Financial Ombudsman Service (FOS) is expecting to deal with 4,000 more fraud and scam cases in the banking and loan sector over the next 12 months - a rise of over 12%.