If a bank, insurer, lender or other financial firm has treated you unfairly
and will not put it right, you can take your complaint to the
Financial Ombudsman Service (FOS) — for free. The
ombudsman is independent, settles disputes between consumers and financial
businesses, and can order a firm to pay compensation or fix the problem. This
guide walks you through exactly how it works, the deadlines that matter, and
how to give yourself the best chance of success.

What is the Financial Ombudsman Service?

The Financial Ombudsman Service is the official, independent body set up by
law to resolve complaints about financial companies in the UK. It is
free for consumers to use. If it decides a firm has acted
unfairly, it can tell the firm to apologise, correct the problem, and pay
compensation. A final decision is binding on the firm if you
accept it.

It covers complaints about most financial products and services, including:

  • current accounts, savings and payments (including fraud and unauthorised
    transactions)
  • loans, credit cards, overdrafts and other borrowing
  • insurance (car, home, travel, life, payment protection)
  • mortgages
  • pensions and investments

It does not handle complaints about most other sectors
— for energy suppliers, letting agents, solicitors and so on you use a
different ombudsman. See our
guide to which ombudsman covers what.

Step 1: Complain to the firm first

You must give the business a chance to put things right before the ombudsman
will look at your case. Put your complaint in writing, explain clearly what
went wrong and what you want them to do, and keep a copy. Our
complaint letter templates can
help you word it.

The firm has up to 8 weeks to send you a final response. You
can go to the ombudsman once you receive that final response, or sooner if the
firm sends a “deadlock” letter, or as soon as
8 weeks have passed without a satisfactory answer.

Step 2: Refer your complaint to the ombudsman — and mind the deadlines

Two time limits matter, and missing them can stop your complaint being
considered:

  • You must refer your complaint to the ombudsman
    within 6 months of the date on the firm’s final
    response letter.
  • You must also complain within 6 years of the event you are
    complaining about, or — if later —
    within 3 years of when you knew (or ought reasonably to
    have known) that you had cause to complain.

You can complain online, by phone or by post. Include your complaint, the
firm’s final response, and copies of your evidence.

Step 3: The ombudsman investigates

An investigator reviews both sides and gives an opinion on what should happen.
If either side disagrees, the case can be passed to an
ombudsman for a final decision. If you accept that final
decision, it is legally binding on the firm; if you reject
it, you keep your right to go to court instead.

How much compensation can the ombudsman award?

The ombudsman can require a firm to compensate you for financial loss, and
sometimes for distress and inconvenience. There are maximum award limits,
which are increased each April. From 1 April 2026 the limits
are:

  • £455,000 for complaints about something a firm did
    (or failed to do) on or after 1 April 2019
  • £205,000 for complaints about acts or omissions
    before 1 April 2019

The ombudsman can recommend a firm pays more than the limit, but cannot force
it to.

Worked example

Say £2,400 leaves your current account in three unauthorised card
payments you did not make. You report it to your bank, but it refuses a
refund, claiming you must have authorised the transactions, and sends a final
response saying its decision is final. Under the Payment Services Regulations
the bank must generally refund unauthorised payments unless it can show you
acted fraudulently or with gross negligence.

You refer the complaint to the Financial Ombudsman Service within the 6-month
window, attaching your bank statements and the final response. The
investigator finds the bank could not show you authorised the payments, and
upholds your complaint. The bank is told to refund the
£2,400, add interest, and pay for the distress caused.
You accept the decision and it becomes binding.

How to give yourself the best chance

  • Complain in writing and keep every letter, email and reference number.
  • Build a clear timeline of what happened and when.
  • Say specifically what you want — a refund, compensation, or the
    problem fixed.
  • Send copies of evidence, never originals.
  • Act promptly once you have the final response — do not let the 6-month
    clock run out.

Frequently asked questions

Does it cost anything?

No. The Financial Ombudsman Service is free for consumers. Firms pay a case
fee, so you do not need to use a claims-management company or pay anyone a
percentage of your compensation.

What if I miss the 6-month deadline?

The ombudsman can only consider a late complaint in limited circumstances (for
example, if exceptional reasons stopped you complaining in time). Do not rely
on this — refer your complaint within 6 months of the final response.

Can I still go to court?

Yes. If you reject the ombudsman’s final decision you keep your right to
take the matter to court. If you accept it, the decision is binding and you
cannot then pursue the same claim in court.

Do I need a claims company?

No. You can complain to the firm and the ombudsman yourself for free. A
claims-management company would take a cut of any compensation for doing
something you can do yourself.

Sources

Last reviewed: September 2026. Always check the current position with the
Financial Ombudsman Service. Next step: use our
complaint letter templates to
write to the firm, or see the
full ombudsman directory if
your complaint is not about a financial firm.