Financial Ombudsman: Your Rights Explained
If you’ve had a problem with a UK bank, credit provider, insurer, or other financial business and feel you’ve been treated unfairly, the Financial Ombudsman Service (FOS) is your legal route to justice — and it’s completely free to use.
In this detailed guide, we’ll explain your rights, how the process works, how long it takes, and how to give your complaint the best chance of success.
What Is the Financial Ombudsman?
The Financial Ombudsman Service is a government-backed, independent body that resolves complaints between consumers and financial businesses.
If you’ve tried to resolve your issue directly with your bank or insurer and they either:
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Reject your complaint, or
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Don’t respond within 8 weeks,
…then you can escalate your case to the Ombudsman — at no cost to you.
What Can You Complain About?
The FOS covers almost every financial product or service in the UK. This includes:
| You Can Complain About | Examples |
|---|---|
| Bank Accounts | Wrong fees, unfair overdrafts, account closures |
| Loans & Credit Cards | Mis-selling, unfair interest, unauthorised borrowing |
| Mortgages | Errors with repayments or miscommunication |
| Insurance | Refused claims, delayed payouts, unfair exclusions |
| Investments | Poor advice, unsuitable funds, hidden risks |
| Pensions | Poor handling, wrong projections, delays |
| Fraud & Scams | Bank failures to protect against fraud |
| Buy Now Pay Later | Poor affordability checks, unfair late fees |
✅ You can also complain if a UK financial firm gave you incorrect information, wasn’t clear about terms, or didn’t treat you fairly.
Your Legal Rights as a UK Consumer
If you’re a private individual, sole trader, or small business (fewer than 50 staff and £6.5m turnover), you have the legal right to:
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Complain directly to the company first
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Receive a final response or resolution within 8 weeks
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Escalate your complaint to the Financial Ombudsman after that period
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Be awarded compensation if your complaint is upheld
Even if the Ombudsman doesn’t side with you, their investigation is free and impartial.
How the Complaints Process Works
Here’s a simple breakdown of the typical process:
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Raise the issue with your provider
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Contact their customer service or complaints team
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Keep a written record (email or letter)
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Wait up to 8 weeks
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They must provide a final response or update
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Escalate to the Ombudsman
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Submit evidence like statements, emails, screenshots
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Case is reviewed
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An adjudicator will assess both sides
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A decision is made
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If your claim is upheld, the business must put things right
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Most cases are settled within 3–6 months, although complex disputes may take longer.
Example: UK Bank Complaint
Example: Sarah from Manchester was charged £200 in unauthorised overdraft fees by Barclays, despite her account settings supposed to block overdrafts.
She raised a complaint directly with Barclays, but they declined her refund. She contacted the Financial Ombudsman, who ruled in her favour after reviewing her settings and statements.
Outcome: Barclays had to refund the fees, apologise, and pay £100 for distress caused.
How Much Compensation Can You Get?
If your complaint is upheld, the Ombudsman may award:
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A full refund of money lost (e.g. fees, charges, lost investments)
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Interest on that amount
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An additional sum for stress/inconvenience, usually up to £750
Maximum compensation is:
| Type of Complaint | Max Award (2025) |
|---|---|
| For acts after 1 April 2019 | Up to £415,000 |
| For acts before 1 April 2019 | Up to £160,000 |
Note: These amounts apply if the FOS decision is legally binding.
Is There a Time Limit?
Yes — to be eligible:
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You must complain to the Ombudsman within 6 months of the final response from your financial provider
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The incident must have happened within the last 6 years, or
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You became aware of it within the last 3 years
Even if you missed the deadline, the Ombudsman may still consider it if there’s a good reason.
Which UK Banks Have the Most Complaints?
Every six months, the FOS publishes data on the number of complaints received about major UK banks.
Here are some figures (mid-2024):
| Bank | Complaints Received | % Upheld by FOS |
|---|---|---|
| Lloyds Bank | 17,489 | 39% |
| Barclays | 15,320 | 42% |
| Santander | 9,641 | 37% |
| NatWest | 8,778 | 34% |
| HSBC | 7,932 | 35% |
Source: Financial Ombudsman Service data
Can a Bank Ignore the Ombudsman?
No. If the Ombudsman issues a final decision and you accept it, it becomes legally binding. The business must:
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Follow the instructions (e.g. refund, apology)
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Complete the action within a set deadline
If they don’t comply, you can escalate it further — and enforcement action may follow.
What If the Ombudsman Rejects Your Case?
If you disagree with the decision:
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You can ask for a formal review (if new evidence arises)
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You can pursue the matter through civil courts (though legal costs apply)
Many people also share their experience on Trustpilot, Resolver, or social media, which sometimes prompts the bank to reconsider.
Top Tips to Boost Your Success Rate
✅ Be clear and factual – Stick to dates, sums, and actions
✅ Include all evidence – Statements, letters, call logs
✅ Stay polite – Rude or aggressive complaints may harm your case
✅ Ask for compensation – Explain how you were impacted
✅ Use templates – Tools like Resolver help you format complaints properly
How to Contact the Financial Ombudsman
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☎️ Phone: 0800 023 4567
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📨 Post: Exchange Tower, London, E14 9SR
Final Thoughts
If you’ve hit a wall with your bank, insurer, or lender, the Financial Ombudsman gives you a powerful tool to fight back — with no need to hire a solicitor or pay fees.
✔ It’s free, fair, and often effective
✔ It applies to nearly every financial service in the UK
✔ You could receive thousands in compensation — or even just the justice you deserve
Don’t leave it to chance. You have rights. Use them.