Navigating the complex world of financial disputes can often feel overwhelming, but there’s a reliable guide in this journey—the Financial Ombudsman Service (FOS). This independent body in the UK serves as a crucial mediator, bridging the gap between consumers and financial firms.
Whether you’re grappling with bank account issues, insurance disputes, or any financial product-related problem, the FOS stands ready to assist. But what exactly is this service, and how does it operate to ensure fairness and justice?
This article dives into the heart of the FOS, exploring its role, process, and the impact of its decisions while offering valuable insights for anyone facing financial disputes.
Charlie Walsh
Last updated on 31 January 2024
Fact Checked
Table of Contents
| 1. What is the Financial Ombudsman Service? | |
| 2. How Do You Make a Claim? | |
| 3. What Resolution Can the Financial Ombudsman Offer? | |
| 4. What If I’m Not Satisfied with the Ombudsman’s Decision? | |
| 5. Additional Advice and Guidance | |
| 6. Conclusion | |
| 7. Key Points | |
| 8. FAQs |
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What is the Financial Ombudsman Service?
The Financial Ombudsman Service (FOS) is an independent body that aims to resolve disputes between people and financial services firms.
You can easily contact the Financial for free and request them for assistance. Depending on the situation, they even have the right to order firms to pay compensation in order to settle disputes.
Some financial services and products that the FOS deals with include:
- Credit cards
- Bank accounts
- Irresponsible lenders
- Debt collection
- Insurance
- Investments
- Mortgages
- Loans
- Savings accounts
- Pensions
The FOS will also be able to help you if you’ve been scammed and you did not receive a satisfying response from your bank.
If you face any issues, you should first reach out to the provider that sold you the item. But if you’re not happy with the resolution, you can speak to the Financial Ombudsman and request assistance. They will then act as a mediator.
The ombudsman will look into your issue with the company and make a decision regarding compensation or resolution.
It’s important to keep in mind that there is cut-off points for complaints. According to the Financial Ombudsman, you should make the complaint to the company and escalate your issue to the ombudsman within six years of the original issue taking place. But if the delay took place due to exceptional circ*mstances, they might still be able to assist you.
If you’re attempting to reach out to the FOS due to a bad experience with a creditor or a debt collector because of a debt you’re struggling to pay off, consider reaching out to our MoneyAdvisor team for guidance:
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How Do You Make a Claim?
The first step when it comes to making a claim is to go through the complaints process with the company that you’re having the issue with.
Keep in mind that you cannot reach out to the FOS until you’ve made a complaint and received a final response from the company. You can only reach out to the Financial Ombudsman if their response is unsatisfactory.
Information Required to Make a Claim
In order to make a complaint to the FOS, you need to first fill out a form on their website. They will then request for the following information:
- The name of the company you’re making the complaint about.
- Dates of correspondence with the company, including the date they last responded to you.
- Your account or policy details.
According to the FOS, after you send this information, they will contact you within 10 working days. In order for you to get updates, they will assign you a case handler.
The ombudsman will then speak to the company. Based on the issue, the Financial Ombudsman will provide between 15 days (for complaints about electronic money or payment services) and eight weeks to provide a response.
The company should send its final response to you directly. So, if you’re not happy with the final response provided to you by them, you get six months from receiving it to refer it back to the FOS.
In some cases, once the FOS gets involved and reaches out to the company to investigate the issue, the company will settle the matter immediately in order to avoid an investigation. However, if the company holds its ground, the FOS will make a legally binding final decision.
They will go through all the information and decide if you were treated fairly. The Financial Ombudsman will stay in touch with you during the process. The length of the investigation will be around 9o days. However, keep in mind that this can vary.
Recap of the FOS Process
In summary, the claim process of the FOS is as follows:
1. Make a complaint to the company regarding your issue
2. Wait till they respond to you
3. Fill out the FOS’s form
4. The Financial Ombudsman will look into the company and carry out an investigation. At this point, there is a high chance the company will settle the dispute and end the process.
5. The Financial Ombudsman’s decisions are then taken after evaluation of both sides of the dispute. This will result in a financial compensation or another settlement.
6. If you’re still not satisfied by the decision provided by them, you can escalate the issue further.
What Resolution Can the Financial Ombudsman Offer?
In a situation where the FOS upholds your complaint, they will make a decision on what an acceptable resolution would be. They have the right to order the firm to pay you compensation if they find proof that you’ve lost out financially because of the mistake of the company or think you’ve been inconvenienced because of their actions.
In other cases, the FOS can seek other forms of retribution. Such as, if your insurance policy was cancelled due to an unfair reason, they can request the provider to reinstate it.
Take a look at this review from a person who used the services of the FOS:
What If I’m Not Satisfied with the Ombudsman’s Decision?
Despite the fact that the aim of the FOS is to be a fair and impartial third party, if you’re not happy with the resolution provided, you have the right to escalate it. Note that they have an internal complaints system, so while they are handling the case, you can raise any concerns or issues you have with your case handler. Or simply ask to speak to a manager.
In a situation where this does not work, you can reach out to the Independent Assessor for the Financial Ombudsman Service. However, keep in mind that in order to raise an issue with the Independent Assessor, you should first go through the ombudsman’s internal complaints procedure within one month of your case being closed.
Additional Advice and Guidance
If you’re searching for details regarding the Financial Ombudsman Service, there is a high chance that it may be because you had to face issues with a creditor or even a debt collection company because of a debt you’re struggling to pay off.
In this case, note that there are various debt solutions you can consider. We recommend you explore alternative debt solutions that can address your debt-related concerns effectively.
However, it’s crucial to keep in mind that each of these debt solutions has specific eligibility criteria. Selecting the right one can lead to debt resolution while choosing the wrong one could worsen your financial circ*mstances.
Hence, seeking guidance from a professional debt advisor is a prudent step to take if you find it challenging to determine the most suitable debt solution on your own.
Debt Solutions Available in the UK
1. A Debt Management Plan (DMP) is an informal arrangement that allows you to make monthly payments toward your debts without a binding commitment.
2. Individual Voluntary Arrangement (IVA) is a formal agreement with creditors where regular payments are made, and the remaining debt is typically written off after 5 or 6 years.
3. Trust Deed is a Scottish alternative to the IVA with similar terms involving monthly payments and potential debt write-offs.
4. Debt Relief Order (DRO) is suited for individuals facing financial hardship. It includes a year of no payments while freezing interest, potentially leading to debt write-off.
5. Bankruptcy is an option to consider when you have no feasible means to repay your debts. It offers a fresh start but comes with significant implications.
6. Sequestration is the Scottish equivalent of bankruptcy.
- Additionally, you may be eligible for Minimal Asset Process bankruptcy (MAP). For that to work, you need to prove that you have only a limited income and few valuable assets.
- This MAP option is known for its speed, cost-effectiveness, and simplified process, making it a practical choice to explore.
Alternatively,
If you need personalised assistance based on your current financial situation, please feel free to complete our online form by clicking here to receive help from our Money Advisor Team.
Conclusion
In conclusion, the Financial Ombudsman Service is more than a mediator; it’s a pivotal entity in the financial landscape. Whether it’s grasping the essence of the FOS complaint form, comprehending the aftermath of an ombudsman decision, or navigating dissatisfaction, being informed is your armour.
Remember, the financial ombudsman’s email address is a key link in this chain of communication. Don’t let financial disputes engulf you. The FOS is your ally, offering a balanced and just resolution process. With this knowledge in hand, your journey through the turbulent seas of finance promises to be steadier and more navigable.
Key Points
- The Financial Ombudsman Service (FOS) is an independent body in the UK resolving disputes between individuals and financial services firms. It serves as a mediator between consumers and financial firms.
- Some types of financial issues they cover include credit cards, bank accounts, insurance, investments, mortgages, loans, savings accounts, pensions, and more. They can also assist with issues related to scams and unsatisfactory responses from banks.
- When making a claim, the initial step involves complaining to the company and receiving a final response before contacting the FOS. Complaints should be made within six years of the original issue, with exceptions for exceptional circ*mstances.
- To make a complaint to the FOS, fill out a form on their website, providing details about the company, dates of correspondence, and account or policy details. FOS aims to respond within ten working days.
- If FOS upholds a complaint, it can order financial compensation or seek other forms of retribution, such as reinstating an insurance policy.
- If unsatisfied, individuals have the right to escalate the issue within the FOS, raising concerns with the case handler or speaking to a manager.
- If internal processes fail, there’s an option to reach out to the Independent Assessor for the Financial Ombudsman Service.
FAQs
What is the role of the ombudsman in the UK?
In the UK, an ombudsman’s role is to impartially investigate complaints about companies and organisations. They operate independently, offering a free and impartial service, and do not take sides. Before approaching an ombudsman, it’s advised to first attempt resolving the complaint directly with the organisation involved.
How do I contact the ombudsman in the UK?
To contact the ombudsman in the UK, you can reach out online or via email for a more prompt response. Alternatively, you can call on 0300 123 9 123 (costs similar to 01 and 02 numbers) or (18002) 020 7964 1000 (using Relay UK) for assistance.
Who is the current ombudsman of the UK?
As of the latest information, the current UK Ombudsman is Rob Behrens, who has been in the position since April 2017. The ombudsman operates independently from the Government and the civil service and reports annually to both Houses of Parliament.
What does the Financial Ombudsman Service (FOS) do?
The Financial Ombudsman Service (FOS) is an independent entity that resolves disputes between individuals and financial services firms. The service is free and has the authority to order firms to pay compensation in dispute resolutions. The FOS addresses issues related to various financial services and products, including bank accounts.
Is the Ombudsman service free in the UK?
Yes, the Financial Ombudsman Service in the UK is a free service established by Parliament to resolve complaints about financial businesses, such as banks or insurance companies. They provide assistance in addressing various financial disputes and issues.
