Financial Ombudsman Service (FOS)

The Financial Ombudsman Service settles disputes between consumers and FCA-authorised financial businesses — including banks, insurers, and investment firms — at no cost to the consumer. Consumers must first complain directly to the firm and give it up to eight weeks to respond before escalating to the FOS. If the FOS upholds the complaint, it can direct the firm to pay compensation of up to £430,000 per complaint (for complaints referred from 1 April 2024 onwards).

The FOS is especially important for APP (authorised push payment) fraud victims whose bank declines reimbursement. Under the Payment Systems Regulator's mandatory reimbursement rules (effective October 2024), banks that are members of the Faster Payments scheme must reimburse most APP fraud losses, but disputed decisions can still be escalated to the FOS.

The FOS's decisions are published (anonymised) and create a body of precedent that guides firms' complaints handling. A finding against a firm is binding on that firm if the consumer accepts it, but the consumer is free to pursue court action instead if they prefer.