What the Financial Ombudsman does
The Financial Ombudsman Service (FOS) is a free, independent service that resolves disputes between consumers and financial businesses — banks, insurers, lenders, and investment firms — when a complaint can't be resolved directly with the business itself.
Before you can use it
You generally need to complain to the business first and give them a chance to resolve it — typically up to eight weeks. If they don't resolve it satisfactorily, issue a "final response" you disagree with, or the eight weeks pass without resolution, you can then escalate to the Ombudsman.
What kinds of complaints it handles
- Being treated unfairly or misled by a financial business
- Poor advice leading to financial loss
- Errors in how an account, loan, or claim was handled
- Disputes over insurance claims being unfairly declined or underpaid
What the process involves
You submit your complaint along with supporting evidence, and an FOS adjudicator investigates and reaches an initial view. If either side disagrees, the case can go to a formal Ombudsman decision, which is binding on the business (if you accept it) but not binding on you — you retain the right to pursue the matter through the courts instead if you're not satisfied.
Time limits
There are time limits for referring a complaint to the Ombudsman — generally within six months of the business's final response, and usually within six years of the event complained about (or three years of when you became aware of it, if later). Missing these limits can mean losing the right to have the Ombudsman consider your case.
Key takeaways
- The Ombudsman is free and independent, used after a business's own complaints process is exhausted.
- It covers a wide range of financial disputes, from poor advice to declined insurance claims.
- A final Ombudsman decision binds the business if you accept it, but not you.
- Strict time limits apply — don't leave escalating a complaint too long.