Finance glossary
Financial Ombudsman Service — FOS
Also known as: FOS, the Ombudsman
In simple terms
The Financial Ombudsman Service is a free, independent service that settles disputes between people and financial firms. If a firm cannot resolve your complaint, the Ombudsman can look at it and decide what is fair.
On this page
What is the Financial Ombudsman Service?
The Financial Ombudsman Service (FOS) is an independent body set up by law to resolve disputes between consumers and financial businesses — banks, lenders, insurers, investment firms and more. It is free to use and does not take sides.
It is an alternative to going to court. The Ombudsman weighs up what happened and decides what is fair and reasonable in the circumstances, taking account of the law, regulator’s rules and good industry practice.
How the Financial Ombudsman Service works
You must complain to the firm first and give it the chance to put things right — it has up to eight weeks to send a final response. Only after that (or once the eight weeks are up) can you take the complaint to the Ombudsman.
You usually have six months from the firm’s final response letter to refer the complaint to the Ombudsman. If the Ombudsman finds in your favour it can order the firm to put things right, and its decision is binding on the firm if you accept it.
How could this affect me?
The Ombudsman gives you a genuine, no-cost route to challenge a financial firm without needing a solicitor. It can order compensation, corrections and other remedies where a firm has got something wrong.
If you accept the Ombudsman’s decision it becomes binding on the firm and brings the dispute to an end. If you reject it, you keep your right to go to court instead — but you cannot usually do both.
Things to watch out for
- Complain to the firm first — the Ombudsman will not usually look at a complaint until the firm has had its chance to respond.
- Mind the six-month deadline after the firm’s final response, or you may lose the right to use the Ombudsman.
- The service is free — never pay a claims management company for something you can do yourself.
- A decision is only binding if you accept it; think carefully before rejecting it and going to court.
Know your rights
- The Ombudsman service is free to consumers and independent of the firms it looks into.
- You have the right to escalate to the Ombudsman once a firm has sent a final response or eight weeks have passed without one.
- You normally have six months from the firm’s final response to refer the complaint.
- If you accept the Ombudsman’s decision, it is legally binding on the firm.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- Financial Ombudsman Service, How to complain (opens in a new tab). Accessed 22 Aug 2026.
- Financial Ombudsman Service, Time limits for making a complaint (opens in a new tab). Accessed 22 Aug 2026.