How the Financial Ombudsman Service Works

What is the Financial Ombudsman Service (FOS)?

The FOS is a free, independent service that resolves disputes between consumers and financial businesses. It covers banks, insurers, credit providers, investment firms, and other FCA-regulated businesses.

Who Can Complain?

You can complain to FOS if:

The business is FCA-regulated
You've already complained to the business directly
Either received a final response or 8 weeks have passed without resolution
You refer within 6 months of the final response

What Can FOS Award?

Up to £445,000 for complaints about acts from 1st April 2026 onwards (£415,000 for acts 1st April 2023 – 31st March 2026)
Compensation for distress and inconvenience (typically £100-£500, but can be more)
Interest on financial losses
Directions to put things right

The FOS Process

1. Eligibility Check

FOS checks your complaint falls within their jurisdiction and you've given the business a chance to resolve it.

2. Investigation

An adjudicator reviews evidence from both sides and makes an initial assessment.

3. Initial Decision

The adjudicator issues their view. Either party can accept or request an Ombudsman review.

4. Final Decision

If escalated, an Ombudsman makes a binding decision (if you accept it).

Tips for a Strong FOS Case

Be organised - Present facts chronologically with evidence
Reference regulations - Cite specific FCA rules the firm broke
Quantify losses - Be specific about financial impact
Be reasonable - FOS responds well to measured, factual complaints
Know the rules - Reference DISP, TCF outcomes, and relevant sourcebooks

Timeline

Average case: 3-6 months (but can be longer)
Complex cases: 12+ months
PPI cases: Largely resolved but some ongoing