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Financial Ombudsman Service UK: How It Protects You

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Part ofConsumer Rights

Written by Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
Money matters can get messy. When something goes wrong with your bank, insurer, credit card provider or investment firm, and the company itself does not put it right, you may feel stuck between standing your ground and walking away. This is where the Financial Ombudsman Service comes in. It exists to settle disagreements between consumers and financial businesses without anyone needing to go near a courtroom. On this page I have pulled together a plain-English guide to what the Ombudsman does, who it covers, how the process works in practice, and the kinds of outcomes you might realistically expect. If you are weighing up whether to escalate a complaint, this should help you understand your options before committing time to it.

Overview

The Financial Ombudsman Service (often shortened to FOS) is the UK's official body for resolving disputes between consumers and regulated financial firms. It was set up under the Financial Services and Markets Act 2000 and began operating in late 2001, bringing together several older complaint schemes into a single point of contact.

It is independent of both the firms it deals with and the government, and its service is free for consumers to use. Think of it as a structured middle ground between complaining directly to a company and taking formal legal action.

You bring your complaint, the Ombudsman gathers information from both sides, and a decision-maker weighs up what is fair and reasonable in the circumstances. If the Ombudsman upholds your complaint, the firm can be required to pay compensation, correct records, or take other steps to put things right.

Decisions are binding on the financial firm if you accept them, but you remain free to walk away and pursue the matter in court instead.

Key steps

  1. Raise the issue with the firm first. Before the Ombudsman can step in, you generally need to give the financial business a proper opportunity to deal with your complaint. Put it in writing, set out clearly what went wrong and what you want them to do, and keep copies of everything you send and receive. Most firms have a published complaints procedure on their website.
  2. Wait for a final response or eight weeks. The firm typically has up to eight weeks to investigate and send you a final response. If they reject your complaint, partly uphold it but offer something you find unacceptable, or simply fail to reply within that window, you can then take the matter to the Ombudsman. Hold onto the final response letter, as the Ombudsman will want to see it.
  3. Submit your complaint to the Ombudsman. You can complain online, by phone, by post, or by email. Provide a clear timeline of events, copies of relevant correspondence, statements, contracts and anything else that supports your version of what happened. The clearer and better organised your submission, the easier it is for the case handler to understand the issue.
  4. Cooperate with the investigation. A case handler will look at both sides of the story and may ask follow-up questions of you and the firm. This stage can take weeks or months depending on complexity and how busy the service is. Respond promptly, stay civil, and stick to the facts. If the case handler reaches a view, both parties get a chance to comment before any final decision.
  5. Accept or reject the final decision. If the case is escalated to an Ombudsman for a formal decision and you accept it within the deadline given, that decision becomes binding on the firm. If you reject it, you keep your right to take the firm to court instead, although you will need to think carefully about cost and time before going down that route.

Common questions

If you're dealing with this kind of situation, a call with an experienced legal adviser can help you work out the right next step — from £89.

Common questions

Q Does it cost anything to complain to the Financial Ombudsman?
No, the service is free to consumers. You do not need to pay a fee to bring a complaint, and you do not need a solicitor or claims management company to represent you. The Ombudsman is funded by levies and case fees paid by the financial firms it regulates, so the cost of the service does not fall on the people using it.
Q Who can complain to the Financial Ombudsman?
Individual consumers, microenterprises, small businesses below certain size thresholds, charities and trusts within set limits, and some other smaller organisations can use the service. The eligibility rules are set by the Financial Conduct Authority and do change from time to time. If you are unsure whether your situation qualifies, the Ombudsman's own helpline can confirm before you submit a full complaint.
Q What kinds of disputes does the Ombudsman handle?
It covers a wide range of regulated financial activities, including complaints about current accounts, savings, mortgages, loans, credit cards, insurance policies, pensions, investments, payment services and more. It can look at issues like mis-sold products, poor administration, unfair charges, refused claims and how firms have handled complaints. Some niche or commercial disputes fall outside its remit.
Q Is there a deadline for bringing a complaint?
Yes. There are time limits, and they matter. In most cases you have six years from the event you are complaining about, or three years from when you became aware (or should reasonably have become aware) of a problem, whichever is later. You also normally have six months from the date of the firm's final response to refer the matter to the Ombudsman.
Q What can the Ombudsman order a firm to do?
If a complaint is upheld, the Ombudsman can require the firm to pay financial compensation, refund charges or interest, correct credit records, reinstate policies, or take other practical steps to put the consumer back in the position they should have been in. There is a maximum compensation limit set by the regulator, which is reviewed periodically, so check the current cap on the Ombudsman's website.
Q Is the Ombudsman's decision the same as a court ruling?
Not exactly. The Ombudsman decides what is fair and reasonable in all the circumstances, taking law, regulation and good industry practice into account. If you accept a final Ombudsman decision, it is binding on the firm and enforceable through the courts if needed. If you reject it, you can still pursue the firm through the courts, but the financial business is not bound by the rejected decision.
Q Can I still go to court after using the Ombudsman?
If you reject the Ombudsman's final decision, you keep the right to take court action against the firm, subject to normal limitation periods. If you accept the decision, that usually settles the matter. Court proceedings carry cost and risk that the Ombudsman process does not, so it is worth thinking carefully about whether further action makes sense for your situation.
If you're dealing with this kind of situation, a call with an experienced legal adviser can help you work out the right next step — from £89.

Sources

This guide is based on primary UK law and official guidance.

Brad Askew, Solicitor (non-practising)

Written & reviewed by

Brad Askew Solicitor (non-practising)

Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.

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Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.