Financial Ombudsman Service (FOS)

Overview

The Financial Ombudsman Service settles disputes between consumers and financial businesses authorised by the FCA. Decisions are binding on the business if the consumer accepts them. The maximum award (where the complaint was referred after 1 April 2024) is £430,000 for acts or omissions on or after 1 April 2019; lower limits apply for older complaints. FOS is free for consumers and small businesses.

What it handles

• Banking complaints (current accounts, credit cards, loans)
• Insurance complaints (motor, home, travel, life, PPI)
• Investment and pensions complaints
• Mortgage complaints
• Mis-sold financial products
• Section 75 disputes with credit card providers

Fees

• Consumers and small businesses: Free

Deadlines

• Business's final response letter → 6 months to complain to FOS
• Event complained of → 6 years (or 3 years from awareness, whichever is later)

Process

1. Step 1: Complain to the business

   You must first contact the financial business, explain what's happened, and let them know how you'd like it put right — the page states most complaints can be resolved directly this way.

2. Step 2: Business investigates

   The business investigates under set rules; for most complaints it has up to 8 weeks to respond (only 15 days for complaints about fraud/scams or payment services), then sends a final response.

3. Step 3: Bring complaint to FOS

   If you're unhappy with the final response, or don't receive one in time, you can bring the complaint to the Financial Ombudsman Service within 6 months of the date on that final response.

Official sources