If you have a complaint about a financial business in the UK, the Financial Ombudsman Service (FOS) is there to help. The FOS is an independent organization that offers free, impartial help to consumers who are unable to resolve a dispute with a financial business on their own.
The FOS was established under the Financial Services and Markets Act 2000 (FSMA) and is regulated by the Financial Conduct Authority (FCA). The FOS operates under a set of rules known as the Dispute Resolution: Complaints (DISP) rules, which are set out in the FCA Handbook.
So, what exactly can the Financial Ombudsman Service do for you?
Firstly, the FOS can investigate complaints. Under the DISP rules, financial businesses are required to have a complaints handling procedure in place. If you have a dispute with a financial business such as a bank, insurance company, or investment firm, you can raise the issue with the financial business and follow their complaints procedure. If you are not satisfied with the outcome, you can then refer the complaint to the FOS. The FOS will investigate the matter and try to help you find a resolution.
Secondly, the FOS can offer mediation. If your complaint is not resolved through an initial investigation, the FOS can provide a mediator who will help you and the financial business come to an agreement. This is a voluntary process, and both parties must agree to participate.
Thirdly, the FOS can make decisions. If mediation is not successful, the FOS can make a decision on the case. This decision is binding on the financial business, but not on the consumer. However, it is rare for a financial business to refuse to comply with a decision made by the FOS. Under the DISP rules, financial businesses are required to cooperate fully with the FOS.
Fourthly, the FOS can award compensation. If the FOS finds in favor of the consumer, they can order the financial business to pay compensation or take other remedial action. The amount of compensation awarded will depend on the nature of the complaint and the harm caused. The FOS has the power to award compensation of up to £350,000.
Finally, the FOS can provide advice. If you have a question about your rights as a consumer, or about the responsibilities of a financial business, the FOS can offer free, impartial advice.
It’s important to note that the FOS can only deal with complaints that have already been raised with the financial business in question and have not been resolved to the satisfaction of the consumer. Under the DISP rules, financial businesses are required to provide consumers with a final response to their complaint within eight weeks of receipt. If you have not received a final response or are not satisfied with the outcome, you can refer the complaint to the FOS.
In summary, the Financial Ombudsman Service in the UK is a valuable resource for consumers who have a dispute with a financial business. They offer free, impartial help and can investigate complaints, offer mediation, make decisions, award compensation, and provide advice. If you have a complaint, it’s always worth trying to resolve it with the financial business first, but if you’re unable to do so, the FOS is there to help. The FOS operates under the Financial Services and Markets Act 2000 and the Dispute Resolution: Complaints rules set out in the FCA Handbook.
If you have a complaint about a financial business and would like to know more about how the Financial Ombudsman Service can help, you can visit their website at https://www.financial-ombudsman.org.uk/. The website provides information about the types of complaints the FOS can deal with, how to make a complaint, and what to expect during the complaints process. You can also find useful resources such as FAQs, guides, and case studies. To make a complaint, you can use the online complaint form or contact the FOS by phone or post. The FOS is committed to providing a fair and transparent service and will work with you and the financial business to find a resolution.