How to complain about your financial services provider

A new time limit could be introduced on consumer complaints as part of an overhaul of financial regulations.

The Treasury is consulting on changes to how complaints are handled by the Financial Ombudsman Service (FOS), particularly when major issues are uncovered.

It comes as chancellor Rachel Reeves used her Mansion House speech to unveil Leeds Reforms that focus on reducing regulatory red tape.

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The FOS has previously warned of a "concerning" rise in complaints made about financial services and the reforms aim to give it more flexibility.

Sarah Pritchard, deputy chief executive at the FCA, said: “When something goes wrong, it is right that people are compensated.

“But a lack of certainty in the financial redress system can hold back investment and innovation. Our changes will help create a system that is more predictable for firms and gives consumers quick and fair compensation where they’re owed it, supporting UK growth.”

How are redress rules changing?

Complaints about financial products are at record levels and concerns about motor finance commission, fraud and scams and credit cards are at new highs, according to the FOS.

This can slow down the time it takes to deal with issues and regulators want to instead identify problems before they become a problem.

The Treasury is proposing an absolute time limit in legislation that will require complaints to be brought within 10 years of the conduct complained of.

It said: “This will avoid the risk of the FOS having to deal with a high number of historic cases, which can be challenging to resolve quickly and effectively.”

The Treasury also wants to give the FCA more powers to investigate mass redress events without wider consultation and let the redress scheme dismiss collective groups of complaints by referring them to the FCA for regulatory action instead.

This will give the FOS time to deal with other issues.

The level of compensation may also change.

The FOS said it will be changing the interest rate it applies to some awards it directs businesses to pay, from 8% to track the Bank of England’s base (average) rate +1%. Awards will still reflect any actual losses the consumer has suffered, the FOS said.

James Dipple-Johnstone, interim chief ombudsman at the Financial Ombudsman Service, added: “These reforms mark a significant step in modernising the UK's redress system, making it more agile and responsive and a much better fit for today's economy. Our changes will bring consistency and predictability for businesses and consumers, enabling us to better focus on our core purpose – resolving individual disputes quickly and with minimum formality.”

The consultation closes on 8 October 2025.

How to complain about financial providers

The FOS should be the last resort if you have a complaint about a regulated financial product or service.

The first step is to complain to your provider in writing either by email or letter to their complaints department. You can only complain about regulated products provided by firms approved by the Financial Conduct Authority (FCA). That includes residential mortgages, insurance products, pensions and investments, although you can’t complain about stock market performance.

“Tell them what happened and when, and ask them to put things right,” says the FCA. Providers need to give a response within eight weeks on if your complaint is successful, how it will be resolved or why they need more time to investigate.

If you are unhappy with the decision or have not had a response after eight weeks, you can then complain to FOS. Complaint forms can be downloaded from the FOS website.

It will consider your issues and contact the financial firm to get their side before making a decision whether to uphold the complaint and award compensation. The latest FOS data shows it upheld 37% of complaints in the first quarter of the 2024/25 financial year.

There are no costs to complain to your financial provider or to the FOS. You don't need to enlist the services of a professional representative to complain. Claims management companies can also help with complaints on a no-win-no-fee basis but could take a large chunk of any compensation you receive.

Another option if you are unhappy with complaining to your financial provider or the FOS is to take legal action. But this will cost you as you may need to pay for legal advice and cover court fees.