How to Complain: Financial Ombudsman Guide

If you’ve been treated unfairly by a financial company in the UK, the Financial Ombudsman Service (FOS) can help resolve your complaint — free of charge. This guide walks you through the entire process, from your initial complaint to escalation and resolution.

Step-by-Step Complaint Process

Step 1: Complain to the Company

Before approaching the Financial Ombudsman, you must first complain directly to the financial firm. This is called the “deadlock” process and is required before the FOS can get involved.

• Contact the firm’s complaints department (check their website or your account details)
• Clearly explain what went wrong and what you want them to do about it
• Keep copies of all correspondence
• The company has 8 weeks to respond to your complaint

If they respond within 8 weeks and you’re satisfied, the matter is resolved. If they don’t respond within 8 weeks, or you’re unhappy with their response, you can escalate.

Step 2: Get a Deadlock Letter

A deadlock letter is issued by the company when:

• They’ve given their final response and you disagree with the outcome, or
• 8 weeks have passed with no response from the company

If you receive a final response you’re not happy with, ask the company for a deadlock letter. You’ll need this to proceed to the FOS. The letter should confirm:

• The company’s final decision
• Your right to refer the matter to the Financial Ombudsman
• The time limit to do so (6 months)

Step 3: Escalate to the Financial Ombudsman Service (FOS)

Once you have a deadlock letter (or 8 weeks have passed), you can contact the FOS:

• Phone: 0800 023 4567 (free from landlines)
• Online: financial-ombudsman.org.uk
• Post: Financial Ombudsman Service, Exchange Tower, London, E14 9SR

Time Limits

You must contact the FOS within 6 months of receiving your deadlock letter or final response. Missing this deadline means the FOS may not be able to investigate your case.

There are some exceptions where the FOS can consider older complaints, particularly in cases involving vulnerability or exceptional circumstances. Contact them to discuss your situation if you’re unsure.

What the FOS Can Do

The Financial Ombudsman Service has the power to:

• Investigate your complaint thoroughly
• Order compensation from the company
• Overturn decisions made by financial firms
• Recommend changes to how a company handles complaints
• Award interest on compensation payments

The FOS is independent and free to use. Their decisions are legally binding on financial companies, though you can still reject their decision if you prefer to take the matter to court.

What Types of Complaints Does the FOS Handle?

The FOS deals with a wide range of financial complaints, including:

• Payment Protection Insurance (PPI) — mis-sold insurance policies
• Insurance — motor, home, travel, and life insurance disputes
• Banking — current accounts, savings, loans, and mortgages
• Credit — credit cards, hire purchase, and debt collection
• Investments — shares, ISAs, bonds, and financial advice
• Pensions — workplace pensions, personal pensions, and annuities
• Payment services — money transfers and payment issues
• Stockbroking — share dealing and investment accounts

Typical Compensation Amounts

The FOS can award compensation up to a maximum of £415,000 for complaints about events from 1 April 2019 onwards. For earlier events, lower limits apply.

Actual compensation depends on the specific circumstances:

• PPI complaints — average payouts range from £2,000 to £5,000, though some cases reach £50,000 or more
• Banking complaints — typically £100 to £10,000 depending on impact
• Insurance complaints — varies widely based on the type and severity

The FOS considers factors like financial loss, stress and inconvenience, and any other detriment you’ve suffered.

Financial Services Compensation Scheme (FSCS)

If a financial firm has failed (gone out of business or is unable to pay claims), the Financial Services Compensation Scheme (FSCS) may be able to help.

The FSCS is separate from the FOS and covers:

• Deposits — up to £85,000 per person per banking licence
• Insurance — 100% of the claim with no upper limit for compulsory insurance
• Investments — up to £85,000 per person for failed investment firms
• Pensions — up to £85,000 per person for failed pension providers

If your complaint involves a failed firm, the FOS will refer you to the FSCS.

Template Complaint Letters

Use these templates when making your complaint. Replace the bracketed text with your details.

Template 1: Initial Complaint to the Company

[Your Name]
[Your Address]
[City, Postcode]
[Date]

[Company Name]
[Complaints Department]
[Company Address]
[City, Postcode]

Dear Sir/Madam,

Account Number: [Your Account Number]

I am writing to make a formal complaint about [brief description of the issue].

On [date], [explain what happened in detail]. This was unfair because [explain why you believe you were treated unfairly].

I would like you to [state what outcome you want — refund, compensation, correction of records, etc.].

I have enclosed copies of [list any supporting documents].

Please respond within 8 weeks. If I do not receive a satisfactory response, I will refer this matter to the Financial Ombudsman Service.

Yours faithfully,
[Your Name]
[Your Phone Number]
[Your Email]

Template 2: Follow-Up Request for Deadlock Letter

[Your Name]
[Your Address]
[City, Postcode]
[Date]

[Company Name]
[Complaints Department]
[Company Address]
[City, Postcode]

Dear Sir/Madam,

Account Number: [Your Account Number]

I am writing regarding my complaint dated [date], reference number [if applicable].

I received your response on [date] but remain dissatisfied with the outcome. I believe my complaint has not been adequately addressed because [briefly explain why].

I would like to refer my complaint to the Financial Ombudsman Service. Please provide me with a deadlock letter confirming your final position so I can proceed.

If you do not provide this within 14 days, I will treat this as a refusal and contact the FOS directly.

Yours faithfully,
[Your Name]
[Your Phone Number]
[Your Email]

Template 3: Complaint to the Financial Ombudsman

[Your Name]
[Your Address]
[City, Postcode]
[Date]

Financial Ombudsman Service
Exchange Tower
London
E14 9SR

Dear Sir/Madam,

Subject: Complaint Against [Company Name]

I am writing to ask for your help with a complaint against [Company Name].

Background:
I have been a customer of [Company Name] since [year]. My account number is [number].

What happened:
[Describe the events in chronological order. Be specific about dates, amounts, and what was said or done.]

The company's response:
I first complained on [date]. They responded on [date] with [describe their response]. I am unhappy with this because [explain why].

Deadlock letter:
I received a deadlock letter on [date] / The company did not respond within 8 weeks.

What I would like:
[State clearly what outcome you are seeking — refund, compensation, correction, etc.]

Enclosed documents:
[List all documents you are including]

I believe this complaint falls within the FOS jurisdiction because [explain — e.g., the company provides regulated financial services].

I look forward to your response.

Yours faithfully,
[Your Name]
[Your Phone Number]
[Your Email]

Tips for a Successful Complaint

• Be specific — include dates, amounts, names of staff, and reference numbers
• Stay factual — avoid emotional language and stick to what happened
• Keep records — save all letters, emails, and notes from phone calls
• Know what you want — be clear about the outcome you’re seeking
• Meet deadlines — contact the FOS within 6 months of the deadlock letter
• Seek advice — Citizens Advice, StepChange, and MoneyHelper offer free guidance

Useful Contacts

• Financial Ombudsman Service: 0800 023 4567 or financial-ombudsman.org.uk
• Financial Services Compensation Scheme: fscs.org.uk
• Citizens Advice: 0800 144 8848 or citizensadvice.org.uk
• MoneyHelper: moneyhelper.org.uk
• StepChange Debt Charity: 0800 138 1111 or stepchange.org