How the Financial Ombudsman Service Works

The Financial Ombudsman Service (FOS) is a statutory body set up by Parliament to resolve disputes between consumers and financial businesses. It is free to consumers. You do not need professional help to use it.

What the Financial Ombudsman Service does

The FOS provides an independent service for resolving disputes between consumers and financial firms. It covers banks, building societies, insurance companies, investment firms, credit providers, mortgage lenders and many other types of financial business.

The FOS considers complaints that have already been through the firm's own complaints process and have not been resolved to the consumer's satisfaction.

When you can use the FOS

You can refer a complaint to the FOS after you have complained to the firm and either received a final response you are unhappy with, or eight weeks have passed without a satisfactory response.

There are time limits. Generally, you must refer the complaint to the FOS within six months of the firm's final response, and within six years of the event you are complaining about (or three years from when you knew, or should have known, you had a cause to complain).

How the FOS assesses complaints

The FOS assesses complaints based on what is fair and reasonable, taking into account relevant law, FCA rules and good industry practice. It considers the evidence from both sides.

The FOS does not automatically uphold every complaint. It makes independent decisions based on the facts. If you disagree with an FOS decision, you retain the right to pursue other routes including court, though this is less common.

What happens if the FOS upholds your complaint

If the FOS upholds your complaint, it can direct the firm to take action. This may include paying you redress, changing how an account is managed, or providing a written apology. The FOS decision is binding on the firm if you accept it.

The FOS is free to consumers

You do not pay to use the Financial Ombudsman Service. There is no fee for submitting a complaint or for any part of the process. The service is funded by levies on financial firms.

You do not need a claims management company to use the FOS

Anyone can refer a complaint to the FOS directly. The FOS treats all complaints — whether submitted by a consumer directly or through a claims management company — by the same standards. Using a claims company does not give your complaint any advantage, but it does mean paying a fee if compensation is received.

How to contact the Financial Ombudsman Service

Visit financial-ombudsman.org.uk. You can submit a complaint online, by post or by telephone. The FOS website has a clear guide to the process, what information to include and what to expect at each stage.