How to Complain About a Lender: Your Step-by-Step Rights Guide

Being treated unfairly by a lender is frustrating, but you have more rights than you might think. Every firm offering consumer credit in the UK is required by the Financial Conduct Authority (FCA) to handle complaints properly. If they do not, you can escalate to an independent body that has the power to order them to put things right. Here is how the process works, step by step.

When you have the right to complain

You can make a formal complaint to a lender or credit broker for a wide range of reasons. Common grounds include:

• Poor customer service: being ignored, given incorrect information, or treated unfairly by staff.
• Mis-sold products: a loan or add-on product that was not suitable for your circumstances, or where important terms were not explained clearly.
• Hidden fees and charges: costs that were not disclosed upfront or that you only discovered after signing the agreement.
• Failure to follow FCA rules: lenders must comply with strict rules around affordability checks, clear communication, and treating customers fairly. If they have not, you have grounds to complain.
• Credit report errors: if a lender has reported incorrect information to a credit reference agency and refuses to correct it, you can raise a formal complaint. You can also dispute the error directly with the credit reference agency.

Step 1: Complain directly to the lender

Every FCA-regulated firm must have a published complaints procedure. Your first step is always to raise the issue with the firm itself. Here is the best way to do it:

• Put it in writing: while you can complain by phone, a written complaint (email or letter) creates a clear record. State clearly that you are making a formal complaint and include dates, account numbers, and a summary of what went wrong.
• Say what you want: be specific about the outcome you are seeking - a refund, a correction to your credit file, an apology, or compensation for inconvenience or financial loss.
• Keep records: save copies of all correspondence, note the dates and names of anyone you speak to, and keep screenshots of any online chat or account pages.
• Know the timeline: the firm must acknowledge your complaint promptly and you should receive a final response within eight weeks. If they cannot resolve it within that time, they must explain why and tell you about your right to escalate.

Step 2: Escalate to the Financial Ombudsman Service

If you are unhappy with the lender's final response, or if eight weeks have passed without one, you can take your complaint to the Financial Ombudsman Service (FOS). The FOS is a free, independent body set up by Parliament to resolve disputes between consumers and financial firms.

• It costs you nothing: the service is free for consumers and you do not need a solicitor.
• It has real authority: the Ombudsman can order the firm to pay compensation, correct your credit file, issue an apology, or take other steps to put things right. Decisions are legally binding on the firm once you accept them.
• How to complain to the FOS: you can submit your complaint online at financial-ombudsman.org.uk, or call their consumer helpline on 0800 023 4567. You will need the lender's final response letter (or evidence that eight weeks have passed), plus any supporting documents.
• Time limits: you generally have six months from the date of the lender's final response to bring your case to the FOS, so do not delay once you receive it.

Other routes to consider

Depending on the nature of your complaint, other organisations may be able to help:

• Action Fraud: if you believe the lender has committed fraud or is operating as a scam, report it to Action Fraud, the UK's national fraud and cyber-crime reporting centre. This is separate from the FOS complaints process and is for criminal matters only.
• Citizens Advice: for free, impartial guidance on your consumer rights and the complaints process. Their website and phone line can help you understand what you are entitled to and draft a complaint letter.
• FCA Contact Centre: while the FCA does not handle individual complaints, you can report a firm's behaviour if you believe it is breaking the rules. Use the FCA's consumer helpline on 0800 111 6768.

What makes a strong complaint

The difference between a complaint that gets resolved quickly and one that drags on often comes down to how clearly you present your case. A strong complaint should:

• State clearly at the top that this is a formal complaint.
• Include specific dates, amounts, and names wherever possible.
• Reference the parts of the agreement or FCA rules you believe have been breached.
• Be clear about the outcome you want - refund, correction, apology, or compensation.
• Attach or reference any supporting evidence (emails, statements, screenshots).
• Keep a calm, factual tone. An emotional complaint is understandable but a professional one is more likely to be processed efficiently.

For more general context on what responsible lending looks like and the standards regulated firms must meet, see our guide on FCA lending rules.