How to Complain About a Lender (and the Financial Ombudsman)

If a lender has got something wrong — an error on your account, a charge you think is unfair, poor treatment when you asked for help — you are not stuck with it. The UK has a clear, free, two-stage system for putting financial complaints right: first the lender, then, if needed, an independent ombudsman. Knowing how it works, and the deadlines involved, makes you far more likely to get a fair outcome. This guide walks through both stages. This is general information, not financial or legal advice.

Step one: complain to the lender first

Almost every financial complaint must start with the lender itself. Authorised firms are required to have a proper complaints procedure, and giving them the chance to fix the problem is both sensible and a necessary step before you can escalate.

To complain effectively:

1. Find the complaints process. It is usually on the lender's website or in your agreement. Many firms offer several routes — phone, online form, email or letter.
2. Put it in writing where you can. A written complaint creates a clear record of what you said and when.
3. Be clear and factual. Explain what went wrong, when it happened, how it affected you, and — crucially — what you want the lender to do to put it right.
4. Include the details. Your account or reference number, relevant dates, and copies (not originals) of any evidence.
5. Keep everything. Save copies of your complaint and every response.

A calm, specific complaint tends to get a better result than an angry, vague one. Firms generally welcome the chance to resolve issues; our piece on customer feedback in financial services explains why good firms treat complaints as useful information. Lenders that handle complaints well usually set out their approach openly; UK lender Credicorp, for example, explains how it handles complaints, the kind of transparent process you should expect from any authorised firm.

A good complaint answers three questions for the lender: what happened, how it affected you, and what would put it right. The clearer you are on all three, the easier it is for them to resolve it quickly.

Step two: the eight-week rule

Once you complain, the clock starts. Under FCA rules, an authorised firm generally has up to eight weeks to send you a final response — its definitive answer to your complaint. Many resolve matters much faster.

A final response will usually either:

• uphold your complaint (in whole or part) and explain what it will do to put things right, or
• reject it, explaining why.

Either way, the response should tell you that if you remain unhappy, you can refer the complaint to the Financial Ombudsman Service, and it should include a leaflet or link about that right.

The eight weeks matters for two reasons. First, it gives the lender a fair, defined chance to resolve things. Second, it is a gateway: if the firm has not given you a final response within eight weeks, you gain the right to escalate even without one.

Step three: the Financial Ombudsman Service

If you are unhappy with the lender's final response — or eight weeks pass with no final response — you can take your complaint to the Financial Ombudsman Service (FOS). This is an independent body set up to settle disputes between consumers and financial firms, and its service is free for consumers.

Key things to know:

• It is free. You do not need to pay anyone to complain for you. Claims-management companies may offer to do it for a fee, but you can do exactly the same yourself for nothing.
• There are time limits. You usually have six months from the lender's final response to refer your case to FOS, and generally within six years of the event (or three years from when you reasonably became aware of a problem). Check the limits for your situation.
• It is impartial. FOS looks at the facts and decides what is fair and reasonable in the circumstances.
• Its decisions can bind the firm. If you accept a final ombudsman decision in your favour, it is binding on the lender.

To use FOS, you will typically provide details of your complaint, the lender's final response, and any supporting evidence — which is why keeping good records from the start matters so much. Our guide to getting help from your lender covers how to keep that paper trail.

What you can complain about

People complain about lenders for many reasons. Common, legitimate grounds include:

• errors on your account or statements,
• charges or interest you believe are wrong or unfair,
• poor handling of a request for help when you were struggling to pay,
• being treated unfairly or not having your circumstances taken into account, or
• problems with how a credit agreement was sold or explained.

If your complaint is about a data or privacy issue — for example, incorrect information being shared — you can also raise concerns with the Information Commissioner's Office (ICO). And if you suspect you have not been dealing with a genuine firm at all, that is a different problem: see our guide to checking a lender is legitimate.

Getting free help

You never have to navigate this alone or pay for the privilege:

• Citizens Advice can help you understand your rights and draft a complaint.
• MoneyHelper offers free guidance on dealing with financial firms.
• The Financial Ombudsman Service itself can talk you through whether and how to refer a complaint.

Avoid paying a claims company to do something you can do yourself for free.

The bottom line

Complaining about a lender follows a clear path: complain to the firm first, in writing, with the facts and the outcome you want; give it up to eight weeks to send a final response; and if you are unhappy — or hear nothing in that time — escalate to the Financial Ombudsman Service, which is free and independent. Keep records at every stage, watch the six-month deadline to refer to the ombudsman, and lean on free help from Citizens Advice or MoneyHelper. The system exists precisely so that an individual borrower can hold a lender to account, without cost and without a lawyer.