One broker told the FOS that consumers would have brokers 'over a barrel' as intermediaries could be more prone to pay compensation in order to avoid the £550 case fee to the FOS when complaints are made against their firm.
He said: "After our first two free case fees run out, the consumer will have us over a barrel. There is no redress for us and the FSA and FOS are effectively helping to create a compensation-driven culture."
Peter Cook from the FOS retorted by saying that the FOS would not charge brokers a case fee where it was found that the consumer's complaint was frivolous.
Also speaking that the Expo, Chris Cummings, director of the Association of Mortgage Intermediaries (AMI), said brokers should document any resolved complaints.
Under the FSA rules, any complaint resolved by the close of play the following day a complaint is made does not have to be reported to the FSA.
But brokers said they were concerned clients could bring up the complaint again, even it had been resolved by this deadline.
Cummings said: "To prove a complaint was resolved by the end of play the following day, brokers should make sure they have proof of the resolution in writing."
AMI also revealed it was discussing plans with the FOS to roll over the two free case fees brokers get to the following year if no complaints are made against the firm.
AMI added the FOS case fees are expected to be lowered to £360 come April 2005.
