Financial Ombudsman Service
(FOS)
The independent dispute resolution scheme for complaints about FCA-regulated firms. Free for consumers. Decisions binding on firms if the consumer accepts. Maximum award £430,000 (consumer complaints from April 2024) or £85,000 (older complaints). Established under the Financial Services and Markets Act 2000.
FOS handles around 200,000 complaints a year — banks, lenders, insurers, financial advisers, payment service providers, claims management companies. Free to consumers; firms pay a case fee. Consumers must first complain to the firm and allow 8 weeks for a response (or get a deadlock letter) before referring. FOS investigates on the documents in most cases; oral hearings are rare. The FOS Ombudsman applies what is 'fair and reasonable in all the circumstances' — wider than strict legal entitlement. Awards include refunds, distress and inconvenience payments (£100-£3,000 typical), and policy changes.