Ombudsman
An independent official or body that investigates complaints against organisations on behalf of consumers, typically at no cost to the complainant.
Also known as: ombudsperson, FOS, AFCA
Last reviewed: 10 June 2026
An ombudsman is a neutral dispute-resolver who investigates complaints from consumers (or citizens) against institutions — government bodies, financial firms, energy suppliers, telecommunications providers, or others — and can make determinations that are binding on the institution if the consumer accepts. The word originates from Swedish and means roughly 'representative of the people'. In most schemes, using the ombudsman service is free for consumers and mandatory for member organisations.
In the UK, sector-specific ombudsman schemes include the Financial Ombudsman Service (FOS), the Energy Ombudsman, the Housing Ombudsman, and the Legal Ombudsman. Organisations must first be given a chance to resolve the complaint before the ombudsman will accept it. The FOS's maximum award is £430,000 per complaint; other ombudsmen have lower caps. In Australia, the Australian Financial Complaints Authority (AFCA) performs a similar function for financial disputes.
For scam victims, the relevant ombudsman is typically the FOS (UK) or the CFPB's complaint portal (US). An ombudsman decision in the consumer's favour is binding on the firm if the consumer accepts it. Consumers remain free to pursue litigation instead if they prefer a potentially larger award.
Examples
- An energy customer receives a £400 bill she believes resulted from meter fraud; the Energy Ombudsman upholds her complaint and directs the supplier to recalculate.
- A fraud victim whose bank refused reimbursement takes his complaint to the FOS; the adjudicator upholds it and the bank pays within 28 days.