What is the Financial Ombudsman Service?
The Financial Ombudsman Service is an independent organisation set up to help people in the UK resolve disputes with financial companies – such as banks, lenders, and debt collectors – without having to go to court. This service is completely free for consumers and acts as a neutral third party, making it easier to challenge unfair treatment or practices by financial businesses.
If you feel you’ve been treated unfairly when dealing with loans, credit cards, mortgages, or debt collection agencies, the Financial Ombudsman Service can step in to investigate your complaint. Common examples include being chased for a debt you don’t owe, being charged unfair fees, or being misled about the terms of a loan or credit agreement.
One of the main advantages of using the Financial Ombudsman Service is that it offers an alternative to legal action, which can be time-consuming and costly. This process is known as Alternative Dispute Resolution (ADR), and it allows most complaints to be settled fairly and efficiently, often without the need for formal legal proceedings.
The Financial Ombudsman Service covers a wide range of financial issues, including:
- Problems with bank accounts and payments
- Disputes over loans, credit cards, and overdrafts
- Issues with mortgages and secured loans
- Unfair or aggressive debt collection practices
The rules and standards the service follows are based on UK law and regulations, such as the Consumer Credit Act 1974, which sets out your rights and protections when dealing with consumer credit and debt. If you believe a bank, lender, or debt collector has breached these rules, the Financial Ombudsman can review your case and may order the company to put things right – including refunding money or compensating you for any harm caused.
To learn more about how the service works, what types of complaints it can help with, or to start a complaint, visit the Financial Ombudsman Service homepage. Here you’ll find detailed guidance, practical examples, and information about your rights as a consumer.
When Can You Complain to the Financial Ombudsman?
Before you can take your complaint to the Financial Ombudsman, you must first give your bank, lender, or debt collector a chance to put things right. This means contacting them directly and explaining your concerns – whether it’s about unfair treatment, errors with your account, or mistakes in how your debt has been handled. If you’re unsure where to start, our guide on how to complain to your lender can help you through the initial steps.
You can escalate your complaint to the Financial Ombudsman Service if:
- You believe you’ve been treated unfairly by a financial business, such as being given misleading information about your debt, experiencing unreasonable charges, or facing aggressive debt collection practices.
- There has been a mistake or error – for example, if your lender has reported incorrect information to credit reference agencies or failed to process your payments properly.
- You haven’t received a response within 8 weeks of raising your complaint with the company, or you’re unhappy with their final response.
The Financial Ombudsman can only consider complaints that fall within certain time limits. Generally, you must bring your complaint within six years of when the problem happened, or within three years of when you first became aware (or should reasonably have become aware) of the issue. Acting promptly is important, as waiting too long could mean your complaint is not accepted.
The right to complain is protected by key UK laws, including the Consumer Rights Act 2015, which sets out your rights when dealing with financial services, and the Financial Services and Markets Act 2000, which regulates how financial businesses must treat customers. These laws ensure that you have clear avenues for redress if you feel let down.
For more detailed information on what issues the Ombudsman can help with, and how to start your complaint, visit the Financial Ombudsman Service website. This official resource explains the types of complaints they handle, the process involved, and what you can expect if you decide to take your case further.
How to Make a Complaint to the Financial Ombudsman
Making a complaint to the Financial Ombudsman is a straightforward process designed to be accessible to everyone. You can submit your complaint online, over the phone, or by post, using the official contact details provided by the Financial Ombudsman Service. The service is completely free and impartial, meaning it does not take sides and will consider your case fairly.
Before you contact the Ombudsman, it’s important to first give the bank, lender, or debt collector a chance to resolve your complaint. If you’re unsure about this step, you can read more about how to complain about unfair debt practices to ensure you’ve followed the correct process.
When you’re ready to approach the Ombudsman, make sure you include as much detail as possible. Clearly explain what happened, why you think it was unfair, and what outcome you are seeking. For example, you might want a refund of fees, compensation for distress, or a change to your credit record. Attach any relevant documents, such as letters, emails, statements, or notes from phone calls. It’s a good idea to keep copies of everything you send, as well as any responses you receive.
Once your complaint is submitted, the Financial Ombudsman will review your case. They may contact you to ask for further information or clarification. Throughout the process, the Ombudsman will communicate with both you and the company involved to gather all the facts and reach a fair decision.
The Financial Ombudsman Service is governed by rules set out in the Financial Services and Markets Act 2000 and must follow the Financial Ombudsman Service’s own rules and guidance. Their aim is to resolve complaints as quickly as possible, but more complex cases may take longer.
For step-by-step instructions and more detailed guidance on what to expect, visit the Financial Ombudsman Service. Here you’ll find helpful information on how to submit your complaint, what information you’ll need, and how the process works from start to finish.
Taking these steps can help ensure your complaint is handled efficiently and gives you the best chance of a fair outcome. If you need further support, remember to keep track of all your documents and communications, as these will be important if your case needs further review.
What Happens After You Complain?
When you submit a complaint to the Financial Ombudsman Service, the process is designed to be fair, independent, and straightforward. Here’s what you can expect after making your complaint:
Independent Investigation
Once your complaint is received, the Financial Ombudsman will review the details you’ve provided. Their role is to act as an impartial third party, so they will examine your case independently – without taking sides.
Contacting the Other Party
The Ombudsman will usually get in touch with your bank, lender, or debt collector to hear their version of events. This helps them gather all the facts and understand both perspectives. You don’t need to worry about negotiating directly with the business at this stage; the Ombudsman handles all communications.
Providing More Information
You may be asked to provide extra evidence or clarify aspects of your complaint. This could include copies of letters, emails, statements, or notes from phone calls. Providing as much detail as possible helps the Ombudsman reach a fair decision.
Reaching a Fair Outcome
The Financial Ombudsman aims to resolve complaints based on what is fair and reasonable, considering the law, regulatory rules, and industry best practices. If they find that you have been treated unfairly, they can recommend or require the business to put things right. This might mean asking the lender or debt collector to correct a mistake, change how they’ve handled your account, or pay you compensation. To find out more about how the Ombudsman decides on compensation, you can read their official guidance.
If your complaint is upheld and you’re entitled to a financial award, you may also want to learn more about claiming compensation for unfair debt practices.
If You Disagree with the Decision
Once the Ombudsman has made their final decision, you’ll be given the chance to accept or reject it. Most people choose to accept the outcome, as it is binding on the business if you agree. However, if you disagree with the decision, you are still free to pursue the matter through the courts. It’s important to note that accepting the Ombudsman’s decision usually means you can’t take further legal action on the same issue.
What to Expect Next
The whole process is designed to be as stress-free as possible, and you’ll be kept informed at each stage. If you have questions about the timescales or what happens after a decision is made, you can find further details in the Ombudsman’s official compensation guidance.
Remember, the Financial Ombudsman Service is there to help you resolve your complaint and ensure you’re treated fairly under UK financial regulations. If you’re unsure about your next steps after a decision, or want to know more about your rights, exploring related resources can help you make informed choices.
Common Issues Handled by the Financial Ombudsman
The Financial Ombudsman Service helps people resolve a wide range of complaints about banks, lenders, and debt collection agencies. If you feel you’ve been treated unfairly or something has gone wrong with your debt or credit arrangements, the Ombudsman may be able to help. Below are some of the most common issues they handle:
Mis-sold Credit Products
If you’ve been sold a loan, credit card, or payday loan that wasn’t suitable for your needs, or you weren’t given clear information about the terms, you may have been a victim of mis-selling. This includes situations where you were encouraged to borrow more than you could afford or not told about important fees and charges. The Ombudsman regularly deals with complaints about mis-sold credit products, helping consumers understand their rights and seek redress where appropriate. Complaints about credit products are also covered under the Consumer Credit Act 1974, which sets out your legal protections when borrowing money.
Unfair Debt Collection Practices
The Ombudsman can investigate if you’ve experienced aggressive or unfair treatment from lenders or debt collectors. This might include repeated unwanted calls, threats, misleading information about your legal rights, or failure to consider your financial circumstances. Such behaviour can breach industry guidelines and may also violate consumer protection laws. The Financial Ombudsman Service provides a free and impartial way to challenge these practices.
Problems with Mortgage Arrears
If you’re struggling to keep up with your mortgage payments, or you believe your lender hasn’t handled your arrears fairly, you can complain to the Ombudsman. Issues may include a lack of support when you fall behind, unreasonable charges, or poor communication about your options. For more detailed guidance, see our section on mortgage arrears, which explains your rights and what lenders should do to help you.
Errors or Mistakes in Debt Accounts
Mistakes can happen, such as incorrect balances, misapplied payments, or errors in your credit agreement. These errors can affect your credit rating and cause unnecessary stress. If your lender or debt collector doesn’t resolve these mistakes promptly, the Ombudsman can step in to investigate and help put things right.
Scams Related to Debt or Financial Products
Unfortunately, scams are a growing problem. You might be targeted by fraudsters pretending to be legitimate lenders or debt collectors, or offered fake solutions to your debt problems. It’s important to be vigilant – learn more about spotting and avoiding scams to protect yourself from financial harm. If you’ve lost money or suffered because of a scam linked to a regulated financial business, the Ombudsman may be able to help you recover your losses.
The Financial Ombudsman Service operates under the Financial Services and Markets Act 2000, which sets out the rules for financial businesses and the rights of consumers. For a full overview of the types of complaints the Ombudsman can help with, visit the Financial Ombudsman Service website. If you believe you have a complaint, it’s worth checking your eligibility and gathering any relevant documents before starting your case.
Other Ways to Get Help With Debt Complaints
If you’re dealing with unfair debt collection or feel you’ve been treated badly by a bank, lender, or debt collector, the Financial Ombudsman Service is just one way to seek help. There are several other routes you can take to protect your rights and get support.
Reporting Unfair Debt Practices
If you believe a lender or debt collector is acting unfairly or breaking the law – for example, by harassing you, using misleading information, or charging excessive fees – you can report them to authorities like Trading Standards or the Financial Conduct Authority (FCA). These organisations have the power to investigate and take action against businesses that don’t follow the rules. Learn more about reporting unfair debt practices and what steps you can take if you suspect illegal or unethical behaviour.
The FCA sets strict guidelines for how financial firms should treat customers, especially those in vulnerable situations. If you’re unsure how to make a complaint or want to understand your rights, the Financial Conduct Authority (FCA) offers clear advice on when and how to raise your concerns.
Getting Advice and Support
It’s often helpful to talk to someone with experience in debt issues. Debt charities and independent legal advisers can explain your options, help you understand your rights, and support you through the complaint process. They can also help you check if the lender has broken any rules under the Consumer Credit Act 1974 or the FCA’s Consumer Credit Sourcebook (CONC), which sets out how lenders must behave.
Support for Debt and Rent Arrears
If you’re struggling with debt and also have rent arrears, you may be able to get extra support through Universal Credit or other benefits. Universal Credit can sometimes help cover rent payments or offer budgeting support. For more information on how these benefits can assist you, see help with debt and rent arrears on Universal Credit. If you need to raise an issue about your Universal Credit claim, this guide on how to complain about Universal Credit provides step-by-step instructions.
Starting With Your Lender
Before you contact the Financial Ombudsman, it’s important to try complaining to your lender first. Most lenders have a formal complaints process and are required by law to respond, usually within eight weeks. This gives them a chance to put things right, and you’ll need to show you’ve tried this route before the Ombudsman can step in. If you’re unsure how to begin, the FCA’s complaints advice covers what to include in your complaint and what to expect from your lender.
Exploring all these avenues can help you resolve debt issues more effectively and ensure your rights are protected. If you’re not sure which step to take next, seeking advice from a professional or a trusted charity can make the process less overwhelming.
