The Financial Ombudsman Service (FOS) is a free and independent service that helps resolve disputes between consumers and financial companies in the UK. If you have a problem with your bank, credit card company, or motor finance provider, FOS can step in to help find a fair solution.
For motorists, this means if you're struggling with an unfair charge from your car finance deal or a dispute over insurance coverage, FOS can investigate and make recommendations on how it should be resolved. For example, if your car was written off due to an accident and your insurer refused to cover the full cost of replacing it, you could take this issue to FOS for help.
FOS exists because financial disputes can often seem overwhelming or complex for consumers. The service aims to level the playing field by giving you a fair shot at getting issues resolved without having to go through costly legal proceedings. This is particularly important in the motor finance sector where companies might try to hide behind complicated contracts and small print.
The FOS operates under the Financial Services (Financial Ombudsman Scheme) Regulations 2015, which set out its rules and procedures for handling complaints. These regulations ensure that consumers have access to a fair process when dealing with financial disputes.
If you're facing issues with your motor finance provider or insurer, remember that FOS can be an invaluable resource. Always try to resolve the issue directly with the company first, but if that doesn't work, don’t hesitate to take your case to the FOS within six months of receiving their final response to your complaint.
How This Relates to the FCA Redress Scheme
The FCA motor finance redress scheme covers 12.1 million agreements with an average compensation of £829 per agreement. The total cost to firms is £9.1 billion. If you had PCP or HP finance between 6 April 2007 and 1 November 2024, you may be eligible. The final deadline to complain is 31 August 2027. You do not need a claims management company.