Financial Ombudsman Complaint Guide UK 2025 — Banks, Insurance & Investments
If your bank, insurer, credit card company, or financial adviser has treated you unfairly, the Financial Ombudsman Service (FOS) can resolve your complaint for free. The FOS can award up to £430,000 in compensation and its decisions are binding on the firm. Over 200,000 complaints are received each year, with around 38% decided in consumers’ favour. This guide explains how to use it effectively.
FOS referral: after 8-week firm complaint process (15 working days for payment services). Referral must be within 6 months of final response. FOS is free for consumers. Car finance commission complaint deadline: check FCA review status. PPI: FOS still accepting some complaints. Firms must implement FOS decisions; consumers can reject and go to court instead.
The FOS Process Step by Step
- Complain to the firm first — formal written complaint by email or letter. State what happened, what you want, and your evidence. Note the date.
- Wait up to 8 weeks — firms have 8 weeks to give a final response (15 working days for payment services complaints). Keep records of all contact.
- Receive final response — the firm accepts or rejects your complaint and explains why. If you are unsatisfied, you have 6 months to go to the FOS.
- Refer to FOS — complete the online complaint form at financial-ombudsman.org.uk. Upload your evidence. It is free and takes around 20 minutes.
- FOS investigation — an adjudicator reviews your case and may contact both you and the firm for more information. Most cases resolved within 3–9 months.
- Provisional decision — the adjudicator issues a view. Both parties can accept or escalate to an Ombudsman for a final decision.
- Final decision — if you accept the FOS decision, it is binding on the firm. If you reject it, you can pursue the matter in court instead (risky — take legal advice).
Car Finance Commission — Ongoing FCA Review
In January 2024 the Court of Appeal ruled that car dealers and lenders acted unlawfully by failing to disclose commissions to customers who took out motor finance. The FCA launched a review and the Supreme Court upheld the ruling in October 2024. Millions of customers who took out car finance before January 2021 may be entitled to compensation. The FCA is working on a redress scheme — check the FCA website for the latest on deadlines and how to claim. The FOS is currently pausing most car finance commission complaints pending the FCA scheme.
Packaged Bank Account Mis-Selling
Packaged bank accounts (where you pay a monthly fee for bundled extras like travel insurance, breakdown cover, and phone insurance) were widely mis-sold. Common failures: customers were not told about eligibility restrictions; benefits were already covered by other policies; customers did not need or want the products. If you were sold a packaged account without the benefits being properly explained, you may have a claim. The FOS has a high uphold rate for packaged account complaints.
Frequently Asked Questions
Yes, but you pay them a fee (often 20–40% of any compensation). The FOS is free if you do it yourself — the process is straightforward and the FOS actively helps unrepresented consumers. For most FOS complaints, using a CMC simply costs you money for a service you can do yourself. CMCs must be FCA-authorised. Avoid CMCs charging upfront fees.
If the firm is no longer trading, the FOS may still be able to investigate if there is a successor firm or parent company. For regulated investments and deposits, the Financial Services Compensation Scheme (FSCS) covers losses up to £85,000 per institution if the firm is in default. Go to fscs.org.uk. For insurance claims, the Financial Services Compensation Scheme also covers insurance policies (90–100% of the claim depending on type).