How to Complain to the Financial Ombudsman Service: Step-by-Step Guide

What the Financial Ombudsman Service is

The Financial Ombudsman Service is a statutory body created by Parliament under the Financial Services and Markets Act 2000. It provides consumers with a free alternative to the courts for resolving disputes with FCA-regulated firms. Any consumer who has first complained directly to a regulated financial firm and is unsatisfied with the outcome can refer the matter to FOS at no cost.

FOS decisions are binding on firms but not on consumers. A consumer who rejects a FOS determination can still pursue the matter through the courts, though doing so forfeits the right to enforce the FOS award.

The 8-week rule: when you can contact FOS

Before approaching FOS, a consumer must first complain directly to the financial firm. The firm then has 8 weeks to issue a final response. A complaint can be referred to FOS in two circumstances: the firm issues a final response the consumer disagrees with, or 8 weeks pass without a final response.

Once FOS is contacted, it checks eligibility, requests information from both sides, and assigns an investigator. Most cases are resolved at the investigator stage. If either party disputes the investigator's view, an ombudsman issues a final decision.

Time limits that apply

The "6 and 3" rule governs time limits at FOS. A complaint must reach FOS either within 6 months of the firm's final response, or within 6 years of the event complained about, or within 3 years of the date the consumer became aware (or reasonably ought to have become aware) of the cause of complaint, whichever is longer. The 2026 FOS reform consultation proposed an absolute 10-year limit, and government has confirmed this will be legislated when Parliamentary time allows.

If a complaint arrives outside these limits, the firm may withhold consent for FOS to consider it. FOS can still investigate in exceptional circumstances, such as incapacitation, but routine administrative delays do not qualify.

What FOS can and cannot award

FOS can award a consumer up to 430,000 pounds for complaints referred on or after 1 April 2024. For older referrals the limit is 190,000 pounds. Awards commonly include: refund of the financial loss, compensation for distress and inconvenience (typically 50 to 750 pounds for moderate cases), and interest on amounts owed. FOS cannot fine firms, compel them to change their policies, or award legal costs. Firms found against must pay a case fee regardless of outcome.

Which products FOS covers

FOS covers most FCA-regulated products: current accounts, savings accounts, credit cards, personal loans, mortgages, insurance (including car, home, travel, pet and life), investments, pensions, hire purchase and motor finance, payment services, and electronic money. Buy Now Pay Later under Deferred Payment Credit arrangements becomes FOS-eligible from 15 July 2026 when FCA regulation of that sector comes into force.

FOS does not cover complaints about firms that are not FCA-regulated, disputes about the price of a product (as distinct from the service around it), or complaints solely about investment performance.

How to build a strong FOS case

FOS resolves cases on what is "fair and reasonable in all the circumstances." Several factors consistently influence outcomes. First, a clear written trail: complaints submitted in writing to the firm, with dates and reference numbers, are easier to evidence. Second, specificity: identifying the exact event (a mis-sale, an incorrect rejection, a delay) is more effective than a general expression of dissatisfaction. Third, quantifying the loss: FOS investigators weigh financial harm more readily when it is calculated and documented. Fourth, citing relevant FCA rules or Consumer Duty obligations where the firm has clearly failed to meet a stated standard strengthens the case.

Consumers who refer complaints directly (without a claims management company) had a higher uphold rate than cases submitted through professional representatives in 2025/26, according to FOS data.

The 2026 FOS reform: what changes for consumers

Government confirmed in March 2026 the most significant package of FOS reforms since its foundation. The key changes when legislated: the Chief Ombudsman gains overall responsibility for determinations, improving consistency; an absolute 10-year time limit replaces the current open-ended position for very old complaints; and the FCA and FOS will jointly publish thematic reports clarifying how particular categories of complaint will be assessed. The Fair and Reasonable test is retained but will be applied more consistently with FCA rules.

The FOS will not become a subsidiary of the FCA. Consumer protections are not reduced. The reforms are aimed at firms and the FOS itself, not at narrowing consumer access.

Complaint volumes in 2025/26

FOS received 214,600 complaints in the full 2025/26 financial year, returning to levels last seen in 2023/24 after an exceptional peak of 305,700 in 2024/25, which was driven by motor finance commission cases. Hire purchase (motor) remained the most complained-about product at 37,700 cases, though current accounts overtook it in the second half of the year at 32,900 cases. Current account complaints were dominated by fraud and scams, which accounted for 18,900 of those cases. Credit cards generated 22,800 complaints, of which 8,800 related to irresponsible or unaffordable lending.

The 2025/26 uphold rate across all products was 30%, compared to 34% in the prior year, partly reflecting a higher proportion of direct consumer complaints now that professional representative fees have reduced speculative referrals.

What is the Financial Ombudsman Service?

FOS is a free, independent statutory body that resolves disputes between consumers and FCA-regulated financial firms as an alternative to court proceedings.

How long does a FOS complaint take?

FOS aims to resolve straightforward cases within 90 days. Complex cases, particularly those involving systemic issues or mass redress events, take longer. FOS publishes average handling times on its website.

Does using FOS affect a credit score?

Referring a complaint to FOS does not affect a credit score. FOS is an independent dispute resolution service and does not report to credit reference agencies.

Can FOS deal with a complaint about a payday loan?

Yes. Payday lenders authorised by the FCA fall within FOS jurisdiction. Unaffordable lending and irresponsible lending are among the most common grounds for upheld complaints in consumer credit cases.

What if FOS rejects the complaint?

If FOS does not uphold a complaint, the consumer is not bound by that decision and may still pursue the matter through the courts. However, the firm is also not bound unless the consumer accepts the FOS determination.

Is there a fee to use FOS?

FOS is free for consumers. Firms pay a case fee for each complaint referred, regardless of outcome, which funds the service.