Financial Ombudsman Service: Your Complete Guide

The Financial Ombudsman Service (FOS) is a free, independent service that resolves disputes between consumers and financial companies. If your bank, insurer, or lender has treated you unfairly, the FOS can order them to pay you back—and they must comply.

What is the Financial Ombudsman Service?

The FOS was set up by Parliament in 2000 to resolve financial disputes quickly and informally. It's funded by the financial industry, but it's completely independent.

What they cover:

• Banks and building societies
• Credit cards and loans
• Insurance (car, home, life, travel)
• Pensions and investments
• Payday lenders
• Debt collection agencies
• Financial advisers

What they don't cover:

• Business complaints (unless you're a micro-enterprise)
• Complaints about government services (HMRC, DWP)
• Complaints about non-financial companies (retailers, utilities)

When Can You Complain to the FOS?

You can escalate to the FOS if:

1. You've complained to the company first (you must give them a chance to respond)
2. 8 weeks have passed since your complaint, OR
3. The company has issued a "final response" (even if it's been less than 8 weeks)

Example: You complain to your bank on 1st January. They respond on 15th February saying "no refund." You can escalate to the FOS immediately—you don't need to wait 8 weeks.

How to Complain to the FOS

Step 1: Check Your Eligibility

Visit financial-ombudsman.org.uk and use their eligibility checker.

Step 2: Gather Your Evidence

You'll need:

• Your original complaint to the company
• The company's response (or proof they haven't responded)
• Bank statements, receipts, or invoices
• Any other relevant documents

Step 3: Fill Out the Online Form

The FOS has a simple online form. You'll need to provide:

• Your name and contact details
• The company's name
• A summary of your complaint
• What you want (refund, compensation, apology)

Step 4: Wait for Their Decision

The FOS will:

1. Acknowledge your complaint (within 5 days)
2. Investigate (3-6 months on average)
3. Issue a decision (binding on the company, not on you)

What Happens During the Investigation?

Stage 1: Initial Assessment

An FOS adjudicator reviews your complaint and the company's response. They'll decide if your complaint is:

• Upheld (you win)
• Partially upheld (you get some compensation)
• Not upheld (you lose)

Stage 2: Ombudsman Review (If You Disagree)

If you're unhappy with the adjudicator's decision, you can ask for an ombudsman review. A senior ombudsman will re-examine your case and issue a final decision.

Important: The company cannot ask for a review—only you can.

What Can the FOS Award?

The FOS can order the company to:

• Refund you (up to £415,000 for complaints after 1 April 2019)
• Pay compensation for distress and inconvenience (usually £100-£500)
• Correct errors on your credit file
• Issue a formal apology

Example: Your bank wrongly charged you £200 in overdraft fees and refused to refund you. The FOS can order them to refund the £200 plus £150 compensation for the stress caused.

How Long Does It Take?

• Acknowledgment: 5 days
• Investigation: 3-6 months (average)
• Complex cases: 12+ months

Tip: The FOS prioritizes cases involving financial hardship. If you're struggling to pay bills because of the company's mistake, mention this in your complaint.

What If the FOS Rules Against You?

If the FOS decides you're not entitled to compensation, you have two options:

1. Accept the decision (it's final)
2. Take legal action (expensive and risky)

Important: You cannot appeal the FOS's decision. Their ruling is final.

Success Rates

In 2024/25, the FOS:

• Received 266,000 complaints
• Upheld 46% of complaints
• Awarded £283 million in compensation

Your chances of winning: Roughly 50/50, depending on the strength of your case.

Common FOS Complaints

1. Unauthorized Transactions

Issue: Someone used your card without permission, and your bank refused to refund you.

FOS ruling: If you didn't authorize the transaction and weren't grossly negligent (e.g., you didn't give your PIN to a stranger), the bank must refund you.

2. Refused Section 75 Claims

Issue: You paid by credit card, the retailer went bust, and your card company refused to refund you.

FOS ruling: If you spent £100-£30,000 on a credit card, your card company is jointly liable under Section 75. They must refund you.

3. Mis-Sold PPI

Issue: You were sold Payment Protection Insurance you didn't need or couldn't claim on.

FOS ruling: If the PPI was mis-sold, the lender must refund all premiums plus 8% interest.

4. Unfair Overdraft Charges

Issue: Your bank charged you £100 in overdraft fees for going £10 overdrawn.

FOS ruling: Overdraft charges must be "fair and reasonable." If they're excessive, the bank must refund you.

5. Delayed Insurance Claims

Issue: Your insurer took 6 months to pay out your claim, causing you financial hardship.

FOS ruling: Insurers must handle claims promptly. If delays caused you loss, they must compensate you.

Tips for a Successful FOS Complaint

1. Be Clear and Concise

Don't write a 10-page essay. Summarize your complaint in 1-2 pages and attach evidence.

2. Focus on Facts, Not Feelings

The FOS cares about what happened, not how you feel. Stick to facts, dates, and amounts.

3. Reference Regulations

Mention relevant laws and regulations:

• Consumer Rights Act 2015
• Section 75 of the Consumer Credit Act
• FCA rules (BCOBS, DISP)

4. Explain Your Loss

If the company's mistake cost you money, explain how:

• "I had to borrow £500 from a friend because my refund was delayed."
• "I was charged £50 in late fees because my payment was blocked."

5. Be Patient

The FOS is free, but it's slow. Don't expect a decision in 2 weeks.

What If the Company Ignores the FOS?

If a company refuses to comply with an FOS ruling, the FOS can:

• Report them to the Financial Conduct Authority (FCA)
• Publish their name on the FOS website
• Take legal action (rare, but possible)

In practice: Companies almost always comply. Ignoring the FOS can result in fines and reputational damage.

Need Help Preparing Your FOS Complaint?

Complaint Monkey generates ombudsman-ready complaint letters with all the right language, regulation references, and evidence checklists. We'll make sure your complaint is taken seriously.

Start Your FOS Complaint → [blocked]