How to complain about financial services Taking a financial complaint further

financial-ombudsman

The Financial Ombudsman Service is free for consumers to use

Details of the ombudsman should be listed in your provider's final letter. In some cases you will be directed to another ombudsman service, such as the Pensions Ombudsman, which investigates personal and occupational pensions.

Using the Financial Ombudsman Service (FOS)

The FOS handles complaints about most bank accounts, investment products, mortgages, loans, some pension products, insurance policies, credit and store cards, HP agreements and financial advice.

Typical complaints can include: being turned down for an insurance payment unfairly; being sold a financial product without understand risks involved; and charges being applied to financial services incorrectly.

Any complaints that are received have to be considered - but not all financial complaints can be dealt with by the ombudsman, and it can be frustrating if it has to return a complaint rather than take it forward.

The ombudsman may not be able to help:

  • if your complaint is solely about the way an investment has performed, rather than if you weren't aware of the risks involved;
  • if what you want to complain about isn't regulated. The ombudsman can look at most financial disputes, though some things – like making a complaint about someone else’s insurance company – aren't covered;
  • if your case has already been considered by the courts;
  • if you're making a complaint on behalf of a business that has an annual turnover of more than 2 million euros, or a business that has more that ten staff members.

FOS decisions

Consumer complaints are handled free of charge. Claims forms can be downloaded or you can call 0300 123 9123. Explain and document your complaint fully – again saying how you'd like the issue resolved.

If initial discussions with both parties don't resolve matters, an adjudicator issues a formal decision. If that is appealed, the matter passes to the ombudsman whose ruling is binding on the company, but not on the consumer – who can take the issue further through legal action. 

If a complaint is upheld, you'll be awarded a sum that aims to put you back in your original financial position.

Going to court

If you're dissatisfied with an FOS decision, you can consider court action. This can prove costly so get legal advice on whether it might be a realistic option.

It will be most costly if your claim exceeds a certain level, as you'll have to use the civil court. 

These limits are £5,000 in England and Wales, £2,000 in Northern Ireland or £3,000 in Scotland. 

If the value of the claim exceeds these limits, you'll need a solicitor, and a barrister for complex cases – and court costs can be high. If you lose, you may have to pick up the other side's costs.

For lower claims, court costs aren't so high, and you won't need a solicitor (though you can have one). These cases are heard as a small claim, except in Scotland, where they're heard at the Sheriff's Court.

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