What does the Financial Ombudsman Service do and how do I use it?
The Financial Ombudsman Service (FOS) in the UK is a free, independent service that resolves disputes between consumers and financial businesses — it can order banks and other firms to reimburse victims in ways that court action cannot always achieve.
Last reviewed: 10 June 2026
Explanation
The Financial Ombudsman Service (FOS) was created by law to provide consumers with a free, impartial way to resolve disputes with UK financial services firms. It covers banks, insurers, investment firms, credit card companies, and other regulated financial businesses. You do not need a solicitor to use the FOS and there is no charge to consumers.
Before approaching the FOS, you must give your financial firm the opportunity to resolve your complaint directly — typically eight weeks. If you are still unhappy after receiving their final response (or if they do not respond in time), you can refer the matter to the FOS within six months of that final response letter.
An FOS investigator reviews the case and issues an initial assessment. If you and the firm accept it, the matter is resolved. If either party disputes it, an ombudsman makes a binding final decision. These decisions can include ordering refunds, compensation, and interest. Firms are legally bound to comply; consumers are not obliged to accept a decision they dislike.
This is general information about how the FOS works. Your specific case outcome depends on the facts, the applicable rules, and the ombudsman's assessment.
Common red flags
- Your bank gave a final response rejecting your refund claim without adequate justification
- Your bank has not responded within 8 weeks of your formal complaint
- The firm uses technical language to obscure why your claim was refused
- You were told to accept a partial settlement that does not reflect your full loss
What to do now
- Send a formal written complaint to your financial firm first and keep a copy
- Wait up to 8 weeks for a final response (or accept an earlier one if provided)
- If unsatisfied with the final response, submit your case to the FOS within 6 months
- Provide all evidence: the firm's response, your original complaint, supporting documents
- Use the FOS online complaints form or call their consumer helpline
Frequently asked questions
Is the Financial Ombudsman the same as a court?
No. The FOS is an alternative dispute resolution service, not a court. It is free and informal compared to litigation. Ombudsman decisions are binding on firms but consumers can still go to court if they prefer — though in practice the FOS resolves the vast majority of disputes faster and at no cost to the consumer.
Can I use the FOS against overseas banks or non-UK firms?
The FOS covers firms regulated by the FCA and PRA in the UK. If a firm was not UK-regulated, the FOS cannot consider your complaint. For overseas firms, you would need to use the relevant ombudsman or regulator in that country.