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.

Struggling with money?

Free, confidential debt advice is available. See your options.

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.