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Can you complain to the Financial Ombudsman Service?
Yes, in many cases you can complain to the Financial Ombudsman Service (FOS) if a financial provider has caused you to lose money. The FOS is there to help resolve disputes between consumers and regulated financial businesses in the UK.
You may be able to complain if you think a bank, lender, insurer, investment firm, or other regulated provider acted unfairly, gave poor advice, made an error, or failed to handle your case properly. The Ombudsman looks at whether the business treated you fairly and followed the rules.
When a complaint may be accepted
The FOS usually considers complaints about regulated financial services. This can include issues such as mis-sold products, incorrect charges, payment errors, fraud handling failures, poor service, or delayed action that led to financial loss.
You normally need to complain to the business first and give it a chance to respond. If you are unhappy with the final response, or the firm does not reply within eight weeks, you may then take the complaint to the FOS.
There are also time limits. In many cases, you must complain within six years of the event, or within three years of when you first realised something may have gone wrong.
What the Financial Ombudsman can do
If the Ombudsman agrees with you, it can tell the business to put things right. This may include refunding money, paying interest, correcting records, or compensating you for distress and inconvenience.
The FOS can make award decisions that are binding on the business if you accept them. This gives you a free and independent route to seek redress without going to court.
However, the Ombudsman does not punish businesses in the way a regulator might. Its role is to resolve your individual complaint and decide what is fair in your situation.
When the FOS may not be the right route
The FOS can only deal with complaints about firms it has authority over. If the provider is not regulated, or the issue falls outside its powers, your complaint may need a different route.
You may also have a separate claim through a court or another scheme, depending on the circumstances. For example, investment losses caused by market movements are not usually compensatable just because the value fell.
If money was lost due to a scam, the answer depends on whether the firm failed to follow the right protections or was responsible in some way. The facts will matter a great deal.
What to do next
Gather evidence such as statements, letters, emails, and notes of phone calls. Write a clear timeline showing what happened, what loss you suffered, and why you think the business was at fault.
Then complain to the financial provider directly and ask for its final response. If the result is unsatisfactory, you can take the case to the FOS for independent review.
If you are unsure whether your case qualifies, check the FOS website or get legal advice. Acting promptly can help protect your right to complain.
Frequently Asked Questions
The Financial Ombudsman Service can award compensation where it finds that a regulated firm caused a consumer to lose money and the complaint is upheld. The amount usually aims to put the consumer back in the position they would have been in if the problem had not happened, subject to the Ombudsman’s rules and any legal limits.
A person is generally eligible if they complained to a firm about a regulated financial product or service, the firm had a chance to respond, and the issue falls within the Financial Ombudsman Service’s jurisdiction and time limits. Eligibility depends on the facts, the type of firm, and whether the complaint is about something the Ombudsman can consider.
The Ombudsman looks at what happened, whether the firm acted fairly and reasonably, what loss was caused, and what compensation is needed to correct that loss. It may consider records, expert evidence, account statements, and the consumer’s and firm’s explanations before deciding.
Compensation can cover direct financial loss, such as money taken incorrectly, charges applied in error, or investment losses caused by unsuitable advice or poor handling. In some cases it may also cover interest, fees, or other out-of-pocket losses linked to the complaint.
Yes, the Ombudsman can sometimes require a firm to add interest to compensate for the time a consumer was without money they should have had. The exact rate and period depend on the circumstances and the Ombudsman’s approach to putting the consumer back in the right position.
The Financial Ombudsman Service has a limit on the amount of compensation it can require a firm to pay for complaints within its jurisdiction, and that limit can change over time. If the loss is above the Ombudsman’s cap, it may still make an award only up to the applicable maximum.
Yes, in some cases the Ombudsman can award compensation for distress, inconvenience, or trouble caused by the firm’s actions. This is separate from financial loss and depends on the seriousness of the impact on the consumer.
The time varies depending on case complexity, evidence, and whether the firm cooperates. Simple cases may be resolved faster, while complex lost-money complaints can take longer because the Ombudsman must review documents and decide the correct remedy.
Useful evidence can include bank statements, letters, emails, agreements, transaction records, screenshots, and any complaint correspondence with the firm. The more clearly the evidence shows the loss and how it happened, the easier it is for the Ombudsman to assess compensation.
Yes, a firm can offer a settlement at any stage, and the consumer can choose whether to accept it. If the offer is fair and resolves the loss, the complaint may end without a final Ombudsman decision.
If the Ombudsman upholds the complaint, it can tell the firm to pay compensation, refund charges, correct records, or take other steps to remedy the loss. The final outcome depends on the losses proven and what the Ombudsman considers fair and reasonable.
Yes, if the Ombudsman finds the firm did not do anything wrong, or if the loss was not caused by the firm’s actions, it may reject the complaint. A financial loss alone is not enough if the firm is not responsible under the applicable rules.
There are strict complaint time limits, including deadlines for bringing the issue to the firm and then to the Ombudsman after the firm’s final response. If those deadlines are missed, the Ombudsman may not be able to consider the case unless an exception applies.
Yes, if the complaint is about regulated advice, mis-selling, poor administration, or another issue within jurisdiction, the Ombudsman may consider investment losses. It will examine whether the loss was caused by the firm and what the consumer would likely have done otherwise.
Yes, if charges or fees were applied unfairly or as part of the problem complained about, the Ombudsman may require them to be refunded. It may also add interest where appropriate to reflect the time value of the money lost.
Causation is central because the Ombudsman must decide whether the firm’s conduct caused the consumer’s loss. If the loss would have happened anyway, compensation may be reduced or refused.
Tax treatment depends on the type of compensation and the relevant tax rules, so it is not automatically tax-free. Consumers should check with HMRC or a qualified tax adviser if they are unsure how an award will be treated.
A final decision from the Financial Ombudsman Service is usually binding if accepted by the consumer, but there may be limited circumstances to challenge it, such as judicial review. Legal advice may be needed if you think the process was unfair or unlawful.
No, it only applies to firms and activities within the Ombudsman’s jurisdiction, which generally includes many regulated financial businesses. Some firms, products, or issues may fall outside its remit.
First complain to the firm and wait for its final response or until it is allowed to respond no further. If the matter is unresolved and within the Ombudsman’s jurisdiction and time limits, you can then refer the complaint to the Financial Ombudsman Service with the relevant evidence.
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