What is the Financial Ombudsman Service?

To understand what is the Financial Ombudsman Service (FOS), it helps to know that it was established in 2000 and given statutory powers by the Financial Services and Markets Act 2000 in 2001.

You may never have wondered what is the Financial Ombudsman Service, but with scams and banking fraud on the rise, it’s important to know where to turn if you need help resolving a financial dispute.

Complaints to banks, credit card companies, etc., often do not give us adequate service, which can be frustrating and stressful.

The Financial Ombudsman Service helps protect your rights and money and can even help you receive compensation.

What does the Financial Ombudsman Service do?

In the UK, the Financial Ombudsman Service (FOS) is a free and independent organisation that helps resolve disputes between consumers and businesses providing financial services.

Some examples are banks, building societies, finance companies, investment firms, financial advisors, and insurance companies.

What can the Financial Ombudsman Service help with?

The Financial Ombudsman Service can handle consumer complaints about almost all finance related matters.

To fully answer what is the Financial Ombudsman Service, it's worth knowing the wide range of issues it can help with, including banking, investments, mortgages, insurance, loans, and more.

In November 2009, the FOS also added money-transfer operators to its list of services that it deals with.

If you issue a complaint to a financial services institution and are unhappy with their response, the Financial Ombudsman Service is there to help you seek a fair resolution. They will investigate the complaint and decide on a resolution, including any compensation payable.

When should you use the Financial Ombudsman Service?

You can't go to the FOS unless you have already made a complaint to the company involved. And have received a final response that you are unhappy with.

You must give the company 8 weeks to resolve the matter before moving forward.

You must request a final response from the company to prove that you have done everything possible to resolve the complaint.

If you disagree with the company, they sometimes suggest you contact the FOS in their final response.

It is advisable to make your complaint to the FOS as soon as you can or within six months.

Sometimes, you have the right to go back quite a few years. If you remember an incident in the past, that went unresolved.

It may be worth re-checking your old paperwork and filing a complaint.

You must report complaints to the FOS within three years of your awareness of the issue, or within six years of when the problem happened.

What is the cost, and how long does it take?

For consumers, the Financial Ombudsman Service is a straightforward, free service that can be relied on to resolve financial disputes fairly.

They act impartially and fairly as third-party mediators between the respective parties. The FOS has the power to order companies to pay compensation

Investigations take an average of 90 days, but this can vary depending on the complexity. During the process, the FOS should keep you informed of ongoing progress.

How to make a claim

Once you have completed the relevant company's complaints procedure and want to take things further, contact the FOS.

If you're wondering what is the Financial Ombudsman Service process for starting a claim, you can begin by filling out the online complaint form on their website. If you need help with the online form or prefer a paper form. Call 0300 123 9123 or 0800 023 4567 for assistance.

When they receive your complaint form, they will investigate and consider the evidence presented by both sides.

They may contact you if they require further information. At this point, the company may also contact you to settle the dispute quickly to avoid a full inquiry.

Once they have reached a decision, it will write to both parties with details of the result. If the FOS agrees in your favour and decides that your complaint is valid. It will supply details of what the company needs to do to rectify things.

What if you are unhappy with the Financial Ombudsman's decision?

An assigned caseworker is usually responsible for making the FOS decision. Should you disagree with the result, you can request a formal decision by one of the actual ombudsmen.

It then involves a detailed analysis and usually takes several months. Less than one in ten cases get referred to an ombudsman. Most of which are due to the finance company requesting it.

There is no further appeal process after the ombudsman's final decision.

The finance company must accept the ombudsman's decision. But you still have the right to take the company to court. However, a court will only make a ruling based on legal wrongdoing.

Before proceeding, consider whether it is worth going down this route.

If you're still unsure what is the Financial Ombudsman Service accountable for, note that you can submit a complaint about how your case was handled, although not about the decision itself.

Otherwise, you can take things to the independent assessor for the FOS, and it must be within a month of the closure of your case.

 

How to Contact the Financial Ombudsman

The Financial Ombudsman Service
Exchange Tower
London
E14 9SR

Freephone: 0800 023 4567  (8 am to 5 pm Monday to Friday)
Telephone: 0300 123 9123  (8 am to 5 pm Monday to Friday)