How to complain and get compensation
Most people don’t complain — they grumble, give up, and absorb the cost. That’s exactly what a company that’s let you down is counting on. But a well-aimed complaint is one of the most powerful (and underused) tools you have, and if the firm won’t play fair, an ombudsman will judge it for you — for free. Here’s how to complain in a way that actually gets you paid.
This is information, not financial advice. It explains how to complain and escalate in the UK.
Complain well: the four rules
A complaint that works looks nothing like an angry rant. It’s calm, specific and hard to ignore:
- Put it in writing. Email or a letter. It creates a record and forces a considered reply. Keep phone calls for follow-up, and note names and dates.
- State the facts, briefly. What you bought, what went wrong, when, and any reference numbers. Attach evidence — photos, receipts, screenshots.
- Say exactly what you want. A refund? A repair? Compensation for the hassle? Name it. “Please refund £84 and £20 for the missed appointment.”
- Set a deadline and a next step. “Please respond within 14 days, or I’ll escalate to the ombudsman.” Politeness plus a clear consequence is what moves things.
Aim high but reasonable, and don’t accept the first “sorry, nothing we can do” — that’s often the opening position, not the final one.
The magic words: “final response”
For financial firms (banks, insurers, lenders, pension and investment providers), there’s a formal ladder:
- The firm has up to 8 weeks to investigate and send a final response (sometimes called a “deadlock” letter).
- If they don’t reply in 8 weeks, or you’re unhappy with their answer, you can take it to the Financial Ombudsman Service.
Asking for a “final response” signals you know the process — which itself often unlocks a better offer.
The ombudsman: free, independent, and it has teeth
The Financial Ombudsman Service (FOS) settles disputes between consumers and financial firms. The crucial facts:
- It’s completely free to you.
- It’s independent — not on the company’s side.
- It can order the firm to put things right and pay compensation. For complaints referred from April 2025 about recent events, it can award up to £445,000 — far more than most disputes need, but it shows the weight behind it.
You normally have 6 months from the firm’s final response to refer your case. You don’t need a lawyer or a claims company (which would take a cut of your money) — you can do it yourself on the FOS website.
Other ombudsmen for other problems
Financial complaints go to the FOS, but most sectors have their own free ombudsman or dispute scheme:
- Energy: the Energy Ombudsman.
- Broadband, phone and post: the Communications Ombudsman or CISAS.
- Shops and general purchases: an Alternative Dispute Resolution (ADR) scheme, or the small claims court for a last resort.
The pattern is always the same: complain to the company first, get a final answer, then escalate to the free, independent scheme for that sector.
Don’t leave money on the table
The companies bank on your silence. A clear, written, specific complaint — with a deadline and the ombudsman named as your next step — flips the odds. And if they still won’t budge, the ombudsman is free and genuinely on your side. Complaining well is one of the highest-value hours in personal finance.
Last checked 31 July 2026. The Financial Ombudsman award limit is £445,000 for cases referred from 1 April 2025 about acts on/after 1 April 2019.
Sources
Just so you know: this guide is information and journalism, not financial advice, and we don't recommend specific financial products. Your circumstances are your own — if you need personal advice, speak to a suitably qualified adviser. Information was correct at the "last updated" date above but things change; always check the linked primary sources.