Financial Ombudsman – your rights
How to get help & compensation for free
If you’re facing an issue with a regulated financial company that the business is unwilling to address, you can escalate the matter to the Financial Ombudsman Service. This service, provided at no cost, has the authority to mandate compensation payments from the company. This guide will walk you through the entire process, including how to file a complaint and what to expect.
1-min read: How to complain to the ombudsman
Companies overseen by the Financial Conduct Authority are required to handle their customers with fairness. If you believe you’ve been treated unjustly, you should first address your complaint directly with the company. If the resolution is unsatisfactory, you can then escalate the matter to the Financial Ombudsman Service. For a brief overview and quick links to get started if you’re familiar with the process, see our summary. For a comprehensive guide with detailed instructions, continue reading below.
- The Financial Ombudsman Service’s range is huge – covering areas most of us deal with in our daily lives. The ombudsman’s responsibilities cover a broad range of financial matters, including bank accounts, credit cards, debt recovery, reckless lending practices, PPI, investment issues, mortgages, loans, pensions, and savings. For more information on how the ombudsman can assist you, please read further below.
- You MUST complain directly to the company before you complain to the ombudsman. A business has a period of eight weeks to review your complaint and provide you with a “final response.” For additional details on the most effective way to submit a complaint, refer to the guidelines provided.
- The best way to complain to the Ombudsman is via its online form. The ombudsman has a “complaint checker” where you answer some initial questions about your complaint. Once you’ve done this, it’ll take you to the relevant form.
- Already made a complaint? Have your reference number handy if you want to chase a complaint. If you’re after an update on an existing case, send an email to complaint.info@financial-ombudsman.org.uk quoting your case reference number, or send a direct message on its social channels, or dedicated contact us page.
What is the Financial Ombudsman Service?
If you’ve used any financial product or service, it’s important to be aware of the strong rights that protect you as a consumer when interacting with financial institutions. Regulations require these companies to “treat customers fairly.” If they fall short of this standard, you have the option to approach the Financial Ombudsman Service. They can review your case independently and provide a decision based on the factual details.
The Financial Ombudsman Service (FOS) is an official body, established by Parliament. It settles disputes between UK-based regulated financial companies and their customers and has legal power to adjudicate on individuals’ complaints. The service is COMPLETELY free to use.
How does it work?
We give you the full rundown below, but in a nutshell, the process works like this:
- You fill in a form. If you’ve already complained to the company and it’s not helped, simply go to the ombudsman’s website and fill out a form. You don’t need any legal help at all, it’s all pretty straightforward.
- It puts your case to the company. Once you’ve made the complaint, it asks the firm what happened, effectively it asks the company for its side of the story.
- The company may agree. Once the ombudsman gets involved, it’s common for companies to just roll over and pay out what they owe to avoid a full investigation.
- If there’s no agreement, it may make a legally-binding final decision. The ultimate choice is grounded in fairness, aiming to guarantee that the customer hasn’t been unfairly treated. Generally speaking, this decision relies on the ‘balance of probability,’ which essentially means determining what is most probable to have occurred based on the provided evidence.
How the ombudsman can help you
Utilizing the ombudsman is a highly effective approach. It is both more cost-efficient and safer compared to seeking resolution through legal channels. Crucially, unlike the court system, which primarily focuses on whether a company has breached any laws, the ombudsman operates under the regulator’s ‘treating customers fairly’ principles. This allows the ombudsman to make decisions against companies even if their actions are legally compliant, as the ombudsman considers additional factors beyond mere legal compliance.
The three things it’d look at are:
- The law of the land. The primary source is the law. If companies’ actions break the law, then it’s clear-cut.
- Regulators’ rules and guidance. The rules of regulators, including the Financial Conduct Authority (FCA), also play a key part. If the FCA has indicated how it wants firms to behave and a firm breaks that, it can be deemed unfair.
- Good industry practice. This is the most interesting one, as it allows the ombudsman to define what good practice is.
In most cases, it means the ombudsman will look at any trade bodies’ standards, such as the Lending Code. It can also evaluate what is considered standard ethical practice and what would be deemed reasonable given the situation. If a company deviates from these norms, it may judge its conduct as unjust and take steps to rectify the issue for you.
What sort of products/services can you complain about?
The ombudsman handles a broad spectrum of issues, having addressed over 280,000 complaints from April 2022 to March 2023 alone. Their remit extends beyond regulated financial activities to encompass overall company conduct, ensuring fair treatment in various aspects.
If you’re uncertain whether your issue falls within their scope or if you need guidance on initiating a complaint, you can utilize the complimentary ‘complaint checker‘ available on their website. Here are some common areas where the ombudsman provides assistance:
- Bank accounts. Current accounts are among the financial products that generate the highest volume of complaints to the financial ombudsman. In the past, the primary issue was dissatisfaction with bank charges, but this has shifted. Nowadays, a significant portion of banking complaints concerns fraud and scams.
- Credit cards. The primary concern revolves around unjust credit card fees. Additionally, the ombudsman is equipped to address various forms of misconduct, including unexplained interest rate hikes, contested transactions, and failure to honor Section 75 claims.
- Car finance. The ombudsman has observed a rise in complaints about car finance, especially concerning undisclosed commissions on hire purchase agreements. At present, the ombudsman has suspended issuing final rulings on complaints linked to the FCA’s review of discretionary commission arrangements. For further details on affected parties and how to file a complaint, please refer to our car finance reclaim section and the free tool available. Nevertheless, the ombudsman will continue to investigate other types of car finance mis-selling, such as issues related to affordability, which you can read more about in the Mis-sold car finance section.
- Debt collection and irresponsible lending.The ombudsman has the authority to review grievances related to debt collection agencies and the lending practices of any entity possessing a consumer credit license, which encompasses payday lenders as well.
For example, if you feel a lender is harassing you or not treating you properly according to the FCA Consumer Credit handbook, you can complain. The ombudsman will need to see that you’ve tried to come to an arrangement with the lender but it’ll investigate if you think you’ve been treated unfairly. Also see the Debt Problems guide for info on how to sort out debts.
- Payment protection insurance (PPI) and other insurance. A major area of grievances once revolved around the aggressive marketing of PPI. The ombudsman also oversees complaints concerning various insurance types, including car, home, travel, and pet policies, as well as roadside assistance, income protection, critical illness, and private medical insurance. Issues may involve rejected, delayed, or unpaid claims, failures to disclose important information, and other related matters.
Since April 2013, when a company offers you an insurance product, it is their responsibility to inquire about the necessary details to assess whether the policy fits your needs. Prior to this change, you were expected to provide this information on your own.
Therefore, if your insurer denies your complaint and failed to ask you the essential questions needed to determine your eligibility for a claim, you can escalate this issue to the ombudsman as a mis-selling claim.
- Investments. The ombudsman does not handle grievances that are purely related to investment performance. However, it can assist with a variety of issues concerning with-profits or whole-of-life policies, unit-linked bonds, savings endowments, and stockbrokers. Additionally, it addresses situations where individuals are promised low-risk products but end up being sold higher-risk investments instead.
- Mortgages and loans. This addresses a wide array of concerns, extending beyond just lenders to also encompass mortgage brokers. It involves examining how lenders manage issues related to mortgage arrears and evaluating whether a mortgage or loan was affordable at the time it was originally obtained.
- Payday loans. Did you get a payday loan that you couldn’t afford to repay as the lender didn’t check your finances properly, or kept trying to sell you it again and again? If so, you may be able to reclaim £100s or even £1,000s – the ombudsman can help.
- Pensions and annuities. Complaints can be about the suitability of a pension plan or administrative matters such as delays, though if you have administrative problems (involving an employer or trustees, for example), you should go to the Pensions Advisory Service first.
- Savings. The ombudsman can look at ISA applications that aren’t processed correctly or on time, what happens to “rollover” savings bonds when they end, or other administrative errors.
In addition to financial reimbursement, the ombudsman can request that companies address additional issues, such as amending inaccurate information on a credit report or reinstating a no-claims discount. The ombudsman’s goal is to restore you to the situation you would have been in if the company had acted correctly.
How to make a complaint
It’s a very simple two-step process:
First, ALWAYS complain directly to the company
You can’t simply approach the ombudsman without first attempting to resolve your issue directly with the company. The ombudsman will typically require evidence that you’ve made an effort to address the dispute with the business before they get involved.
Often, a company’s initial response might be to dismiss your complaint outright. This doesn’t mean your case lacks merit. The situation isn’t always about who’s right or wrong; it’s frequently a matter of business strategy. Companies may find it more cost-effective to refuse your claim, present convoluted legal arguments, and hope you’ll back down rather than pursue the matter further.
Then complain to the ombudsman
- The financial company won’t help.
- You have waited eight weeks and still haven’t heard back.
- Your bank has sent you a rejection letter suggesting you use the ombudsman.
To start your complaint, visit the Financial Services Ombudsman website find out more about the process and submit a complaint.
You can either fill in the complaint form online or print out a copy and post it back to explain your case. Attach any evidence if you have it (this could be statements detailing charges, or your correspondence with the lender). Then leave it with the ombudsman. It’ll contact you if it needs more information or has any possible resolutions.
You can also call the helpline on 0800 023 4567 (open 8am to 5pm on Monday to Friday). If you’re not good at form-filling, or English isn’t your first language, the Ombudsman can take you through the process or find an interpreter.
FOS form-filling help
The form’s simple to fill in, but take care doing it. We’ve written a guide to help, which takes you through filling it in, step by step.
How long will it take to get a decision from the ombudsman?
You shouldn’t expect an immediate decision from the ombudsman. Resolving disputes can take anywhere from three to nine months if the case progresses fully. Although a resolution isn’t assured, tens of thousands of people successfully resolve their issues each year. This ensures that companies are compelled to address your concerns with due seriousness.
Vulnerable customer? If so, you’ll get priority
Although the ombudsman may take a few months to address certain disputes, it prioritizes resolving complaints from individuals in vulnerable situations.
You could be dealing with health issues, an unforeseen life event, or caregiving duties.
If you consider your complaint to be urgent and you are experiencing vulnerability, inform the ombudsman of this when you escalate your complaint. This could help expedite the resolution process.
Financial Ombudsman waiting times
The ombudsman is experiencing more complaints than usual, and we’ve heard reports that it can sometimes take a few months before your case is assigned to an investigator. The FOS has a specific page that gives regularly updated information on current complaint handling timescales.
What to do if you’re not happy with the ombudsman’s decision
Typically, a designated case worker at the Financial Ombudsman Service makes the initial decision. If you disagree with this outcome, you can request that an actual ombudsman review your case. This process usually takes several months due to the comprehensive investigation required.
Less than 10% of cases reach the stage of review by an ombudsman, and in some instances, this happens at the request of the financial institution involved. Once the ombudsman has made a decision, there is no option for further appeal.
While the financial company must comply with the ombudsman’s ruling, you still retain the right to pursue legal action against the company in court.
Think carefully about this. While the ombudsman can decide purely on fairness, a court will only rule based on legal wrongdoing. For information on how to make a small claim for up to £10,000, see our Small Claims Court guide.
If you believe the ombudsman has mishandled your case—such as through undue delays—you have the option to file a complaint regarding the service you received. Should this not lead to a resolution, you have the right to escalate the matter to an independent assessor. However, it’s important to note that this process can only address the quality of service, not the ombudsman’s specific decision.
FOS FAQs
Q – How far back can I complain?
A – Good news: you have the right to revisit issues from several years ago. If you believe you’ve been wronged in the past, gather your documents and file a complaint.
However, it’s important to note that the ombudsman can only address complaints about companies regulated by the Financial Conduct Authority (FCA). While most banks and building societies fall under this category, some insurance companies, for example, weren’t regulated until 2005 or 2008. If you’re uncertain, verify with the ombudsman.
If the firm is within the ombudsman’s jurisdiction, remember that you have EITHER three years from when you became aware of the issue, OR six years from the date the event occurred to file your complaint.
Additionally, you must contact the ombudsman within six months of your last communication with the firm (and remember, you must have lodged a complaint with the firm first). If you miss this window, you’ll need to start the complaint process anew with the company involved.
Keep in mind that missing the deadline could mean the ombudsman won’t be able to assist later, so make sure to adhere to the time limits.
Q – Can I re-open an earlier complaint?
A – Whenever you raise a complaint, a financial institution is obligated to provide you with a conclusive response. This response must include information about the ombudsman’s no-cost service, and failure to include this can result in penalties for the company.
If you do not receive a final response or if the response does not inform you of your right to access the ombudsman service within six months of receiving the letter, your deadlines for action are extended. In this scenario, you have up to three years from the point you became aware of your right to lodge a complaint or up to six years from the date of the incident you are disputing. The Ombudsman has a helpful page outlining the timescales you can expect.
If you’re still within the allowed timeframes and wish to resume a complaint, you should reach out to the ombudsman and request that they continue with your case. You can find the necessary forms and a free guide to completing them in the “Complain to the Financial Ombudsman” section above.
When reactivating your complaint, it’s helpful to include any original correspondence you have and note this in the ‘any other details’ section on page three of the form. Here’s a suggested statement for you to use:
“I am reactivating this complaint because I did not receive comprehensive and accurate information regarding my right to utilize the ombudsman service after my initial complaint dated ENTER DATE.”
Q – Can I charge for the hassle it’s caused?
A – The ombudsman awards compensation for material distress and inconvenience in about a quarter of the cases it looks at.
You can charge for your time. Hidden in its compensation guidelines, it states it will award compensation for the time you’ve spent resolving your complaint. Typically, compensation won’t be granted based on an hourly or daily rate. Instead, it considers the overall impact that the time you’ve spent dealing with the issue has had on you.
This is particularly advantageous if you’ve faced unfair difficulties due to your bank or financial institution, as the ombudsman acknowledges that the time spent resolving such issues has value.
When lodging a complaint with the ombudsman, if you’ve invested a considerable amount of time and effort into resolving the matter, be sure to provide an estimate (or, if available, evidence) of the hours spent addressing the issue. Request compensation in line with the ombudsman’s guidelines. While compensation isn’t guaranteed, you’re much more likely to receive it if you make the request.
You can also leverage this information when initially addressing an uncooperative company. Although the compensation guidelines are officially applicable only to complaints resolved by the ombudsman, indicating that you plan to seek compensation through the ombudsman could encourage the company to settle the matter more promptly.