How to File a Complaint About Mis‑Sold Financial Products

Mis‑selling of financial products occurs when a bank, insurer, lender or adviser sells a financial product that was unsuitable, inappropriate or inadequately explained to you. Examples include payment protection insurance (PPI), mis‑sold investment products, unsuitable pensions advice, unfair car finance arrangements or other financial services that did not meet your needs or were misrepresented at the point of sale. If you believe you were mis‑sold a financial product, UK law provides a clear process for filing a complaint, seeking redress, and escalating unresolved issues to an independent body. This guide sets out your rights, the complaint process step by step, relevant time limits, potential outcomes and risks, and answers common questions in clear, accessible language for both novices and solicitors.

What Counts as Mis‑Selling

Mis‑selling arises where a financial product was promoted or sold to you in a way that did not align with your circumstances or regulatory requirements. Typical examples include:

• PPI mis‑selling, where a policy was sold without adequate explanation of coverage, cost or eligibility.
• Unsuitable investment advice that did not match your risk profile.
• Car finance with hidden or undisclosed commission arrangements that increased your costs.
• Inadequate disclosure of terms, interest rates or exclusions.

Mis‑selling may lead to financial loss, incorrect premiums, and disadvantageous contractual terms. If you think a product was unsuitable or not properly explained, you can complain and potentially receive compensation or redress.

Your Rights Under UK Financial Regulation

UK financial services firms are regulated by the Financial Conduct Authority (FCA), which requires them to treat customers fairly and handle complaints professionally. If a product was mis‑sold, the firm must investigate and respond in line with regulatory standards.

If the firm fails to resolve your complaint, you have a right to escalate it to the Financial Ombudsman Service (FOS) - an independent, free dispute resolution service that can award compensation or directions about how the complaint should be remedied.

Step‑by‑Step: How to File a Complaint

1. Gather Your Evidence

Before making a complaint, collect and organise relevant documents:

• Copies of the original product documents, brochures or contracts.
• Correspondence with the firm (emails, letters).
• Notes of telephone calls or meetings.
• Records of payments, premiums and dates.
• Documentation showing how you suffered loss or disadvantage.

Clear and complete documentation strengthens your case and helps the firm and the Ombudsman understand what went wrong.

2. Contact the Financial Provider First

Begin by raising your complaint directly with the firm that sold you the product. Most financial firms have a formal complaints procedure, which you can usually find on their website or request in writing.

In your initial complaint:

• Explain what happened, when it happened and why you believe it was mis‑sold.
• Include copies of relevant documents.
• State what remedy you are seeking (for example refund of costs, compensation for losses, corrected documentation).

Send your complaint by recorded delivery or another traceable method, and keep copies of everything you send.

3. Await the Firm's Response

Under FCA rules, firms must acknowledge your complaint and respond:

• Within eight weeks with a final response letter explaining their position.
• Within three business days if the firm resolves your complaint quickly.

The final response should clearly state whether the complaint is upheld and, if so, what compensation or redress the firm proposes. It must also inform you of your right to refer the complaint to the Financial Ombudsman Service and the deadline for doing so.

Escalating to the Financial Ombudsman Service

If you are unhappy with the firm's response - for example, if they reject the complaint or offer insufficient redress - you can escalate the matter to the independent Financial Ombudsman Service.

Eligibility and Scope

The Ombudsman can help with complaints about a wide range of UK financial products and services, including insurance, loans, pensions, investments and banking services. It can consider complaints from individuals, small businesses and some charities or trusts.

Time Limits for Escalation

Time limits are important:

• You must refer your complaint to the Ombudsman within six months of receiving the firm's final response letter.
• The original complaint to the firm should be made within six years of the event complained about, or three years from when you reasonably became aware you had cause to complain.

There may be exceptional circumstances - for example serious illness - where the Ombudsman can consider complaints outside these time limits, but you should act promptly.

How to Refer to the Financial Ombudsman

To escalate your complaint:

1. Visit the Financial Ombudsman Service website and use the online complaint form.
2. Provide your final response letter from the firm.
3. Upload relevant supporting documents and a clear explanation of why you remain dissatisfied.

The Ombudsman will investigate independently, contact the firm for its response, and review the evidence. If it finds in your favour, it can direct the firm to compensate you or take corrective action.

There is no cost to initiate a complaint with the Ombudsman, and you do not need a solicitor or paid representative to use the service.

What to Expect from the Ombudsman's Decision

Once the Ombudsman has investigated, it will issue a decision. Possible outcomes include:

• The complaint is upheld in full and the firm must pay you compensation or provide the remedy you requested.
• The complaint is upheld in part with a reduced award.
• The complaint is not upheld, with reasons explained.

The Ombudsman's decisions are binding on the firm if you accept them. If you do not accept the decision, you may still have options - such as civil court action - but this is usually more complex and may involve costs.

Time Limits and Special Cases

For older mis‑selling issues such as Payment Protection Insurance (PPI), specific deadlines have applied. For example, the PPI complaint deadline was set and expired on 29 August 2019, and new complaints are generally not accepted now unless exceptional circumstances apply.

Other product types may have special considerations or ongoing redress schemes (such as car finance mis‑selling linked to undisclosed discretionary commissions) in which regulators or industry schemes may operate alongside the Ombudsman process.

Practical Tips and Considerations

Keep Clear Records

Detailed records of all communications, dates, and documents are vital. A chronology of events helps both the firm and the Ombudsman understand your position clearly.

Understand Remedies and Compensation

Compensation may include refunds of costs, interest, correction of account terms, or in some cases additional payments for distress or inconvenience where appropriate.

Use Free Resources

Independent advisory services such as Citizens Advice can help you understand your rights and eligibility before you complain. They can also help assess whether a product was mis‑sold.

Solicitors and Claims Management Companies

You can use a solicitor or claims management company to help with your complaint, but be aware that they often charge fees or take a share of any compensation. Complaints to the Ombudsman can be made for free by you personally.

Common Questions

Do I need a solicitor to complain?
No. Complaints to both the financial firm and the Financial Ombudsman Service can be made directly by you without a solicitor. However, legal advice might help in complex cases or if you're considering court action.

What if a firm ignores my complaint?
If the firm does not respond within eight weeks, you can refer the complaint to the Financial Ombudsman Service.

Can small businesses use the Ombudsman?
Yes. Certain small businesses can escalate complaints to the Financial Ombudsman Service within the same time limits.

Key Takeaways

If you believe you were mis‑sold a financial product in England or Wales, the first step is to complain directly to the financial provider and give them a chance to resolve the issue. Firms must respond within regulatory timeframes, typically eight weeks, and provide a final response letter. If you are dissatisfied with the outcome, you can escalate the complaint to the Financial Ombudsman Service - an independent, free body that investigates and can order fair redress or compensation. Acting promptly and keeping clear records strengthens your case. Time limits matter: complaints should usually be made within six years of the event or three years from when you reasonably became aware of the issue, and you must refer to the Ombudsman within six months of a final response. Mis‑selling claims can cover a wide range of products, and understanding both your rights and procedural steps increases your likelihood of achieving a satisfactory resolution.