If you’ve been treated unfairly by a financial company, you can escalate your complaint to the Financial Ombudsman Service (FOS). This independent body resolves disputes between consumers and financial firms when other attempts have failed. You don’t need a solicitor, and the process is free for individuals.
Step 1: Try to Resolve the Issue with the Company
Before going to the FOS, you must first complain directly to the financial company. Under UK law, firms have eight weeks to respond with a final decision. If they fail to reply or reject your claim, you can escalate it.
Step 2: Check if Your Complaint Is Eligible
The FOS only handles complaints about financial products and services regulated by the Financial Conduct Authority (FCA). This includes banks, insurers, credit providers, and investment firms. Your complaint must usually be filed within six months of the company’s final response.
If you have taken out car finance, such as a Black Horse car finance claim, and believe you were mis-sold or unfairly charged, you may be eligible to escalate your case. Many consumers have reported hidden fees, unfair interest rates, or lack of proper financial checks when securing their car finance agreements.
Step 3: Gather Evidence and Submit Your Case
You need to provide evidence, including account statements, emails, or letters proving unfair treatment. The FOS requires a clear explanation of the issue and why you believe the company acted unfairly. You can submit your complaint online, by phone, or via post.
Step 4: The Investigation Process
Once the FOS accepts your complaint, an investigator will review the evidence. They may contact both parties for further information before making a recommendation. If either side disagrees with the recommendation, the case moves to an ombudsman for a final decision.
Step 5: The Final Decision and Potential Compensation
If the ombudsman rules in your favour, they can order the company to pay compensation or correct the issue. Their decision is legally binding if you accept it, but the company can appeal through judicial review. In most cases, firms comply with FOS rulings to avoid reputational damage.
How Long Does the Process Take?
Most complaints take around three to six months, but complex cases may take longer. If the company disputes the ruling, further delays can occur. The FOS prioritises urgent cases, such as those involving financial hardship.
Statistics on Financial Ombudsman Cases
- In 2023, the FOS received over 165,000 complaints about financial firms (source: Financial Ombudsman Service).
- 34% of cases resulted in compensation for consumers, showing the importance of escalating valid claims.
- The most common complaints involved banking errors, unauthorised transactions, and mis-sold financial products.
Tips to Strengthen Your Case
- Keep all correspondence with the company as proof of their response.
- Provide a clear and concise summary of your complaint with supporting evidence.
- Be patient, as the process may take months to conclude.
Conclusion
The Financial Ombudsman Service provides a vital safety net for consumers facing unfair treatment. By following the correct process and presenting strong evidence, you increase your chances of success. If you win your case, you could receive compensation or have your issue resolved at no cost to you. If you believe you were mis-sold car finance, such as with a Black Horse car finance claim, escalating your complaint through the FOS can help recover potential overpayments or unfair charges.
