How to complain about a bank in the UK?
How to complain about a bank or debt collection agency in the UK?
Financial businesses like banks and debt collectors deal with thousands of people who owe them money every year. The truth is that service standards are not always acceptable, and complaints do happen. This might be due to poor communication, how they have treated you, or even overcommunication - perhaps you feel harassed!
Regardless of your complaint, it should be taken seriously. If you are still unhappy with the outcome, you can take it to the Financial Ombudsman, an organisation set up for this exact reason.
Financial businesses, including banks and debt collectors, are allowed 25 complaints to the Financial Ombudsman without incurring any charges. However, once the 26th complaint is lodged, they're charged approximately £550 for the Ombudsman’s involvement, regardless of its validity. It’s important to note that you won't be charged for this service as a consumer. This is why financial businesses will often attempt to resolve your complaint directly with you, the complainant, before it reaches this stage.
If you’re looking to complain about a creditor, debt collector, or other financial business, we have eight steps to ensure you manage the complaint using the correct procedure.
Not in the mood to read? We got you covered. Listen to the rest with the YouTube link at the bottom of the page.
Step 1 – Complain to the business
Before you contact the Financial Ombudsman, you will need to send a complaint directly to the business in question, allowing them to resolve your issue.
At The Real Debt Guy, we always recommend that you send the complaint in writing to make sure you have a clear record of what has been said, but you can also make the complaint over the phone if you'd like.
Step 2 – Business confirms receipt of your complaint
You should get a response acknowledging your complaint and an overview of the complaint procedure.
Step 3 – Business responds to your complaint
After acknowledging the complaint, the business will generally need to respond to your complaint within eight weeks. In this response, they should inform you whether your complaint has been upheld or not.
Alternatively, they may respond by asking for more time. If this happens, they should explain why and tell you when they can respond.
Step 4 – Final Response Letter
If the business finally responds and your complaint is not upheld, you should always ask for a final response letter.
Remember, regardless of whether you make a request; the business must respond with a final response letter within eight weeks of receiving the complaint unless they have requested more time to investigate.
Step 5 – How do I contact the UK Financial Ombudsman?
If you’re unsatisfied with the outcome after following the creditors' complaint procedure, you can take your complaint to the Financial Ombudsman. Your complaint with the Financial Ombudsman must be raised within six months of the creditor's final response letter; otherwise, you might miss the boat.
When you take your complaint to the Financial Ombudsman, you can do it over the phone or in writing. Again, we always encourage you to communicate in writing so you have a record.
Step 6 - The Financial Ombudsman confirms receipt of your complaint.
The Financial Ombudsman should contact you within ten working days of receiving your complaint. They will first check if they can deal with your complaint and verify if all other requirements regarding your complaint have also been met.
Step 7 – Financial Ombudsman completes an Initial Assessment
Next, the Financial Ombudsman will complete an Initial Assessment by considering the complaint from both your and the business's perspectives. Following the initial assessment, they will decide whether to rule in your favour or the business's.
This could take up to 90 days ...sometimes longer, so be prepared to wait. Depending on the outcome of the Initial Assessment, you could be eligible for compensation if the Financial Ombudsman rules in your favour.
Step 8 – Request a Final Decision from the Financial Ombudsman
Now, let’s say you or the creditor are unhappy with the outcome, either of you can request a final decision from the Financial Ombudsman. By making this request, the Financial Ombudsman will take a fresh look at the complaint and provide a final verdict.
Still not satisfied with the outcome?
If you are still unhappy with the final outcome, you can take the case to court. At The Real Debt Guy, we never recommend this unless you are 100% sure you will win, and the financial benefit is so great it is worth the risk.
Remember to read The Real Debt Guy's final thoughts below!
The Real Debt Guy is a qualified financial adviser and a UK debt expert. The information in this article is considered to be true and correct at the publication date.
