How to complain about a bank 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!

Here's the thing that gives your complaint real power: financial businesses, including banks and debt collectors, are allowed three complaints to the Financial Ombudsman without any charges. However, once the fourth complaint is made, they are charged £650 for the Ombudsman's involvement, regardless of whether it's justified. It's important to note that as a consumer, you won't be charged for this service. That's why financial businesses often try to resolve your complaint directly with you before it reaches this stage.

The Scale of UK Financial Complaints

The numbers tell the story of just how common these issues are:

• The Financial Ombudsman Service received 305,726 complaints in 2024/25 - the highest level in six years
• 49% of people behind on payments report feeling harassed by creditor contact frequency
• Banking and credit complaints increased by 75% from 62,139 in H2 2023 to 109,155 in H2 2024
• Professional representatives now handle 46% of complaints (up from just 22% the previous year)

You're definitely not alone in feeling frustrated with how you've been treated.

No matter what your complaint is, it should be taken seriously. If you remain unhappy with the outcome, you can escalate it to the Financial Ombudsman, an organisation set up for this purpose.

What Counts as Unacceptable Behaviour

Recent research shows that 2.5 million people feel harassed by creditor contact. Signs of poor treatment include:

• Excessive contact: 24% of people in arrears are contacted more than 16 times per month by creditors
• Inappropriate timing: Early morning, late night, or repeated daily calls
• Threatening tone: Communications that feel intimidating rather than supportive
• Ignoring your circumstances: Not considering your mental health or vulnerability
• Pursuing you on social media: Using platforms like Facebook or X.com inappropriately

The "tipping point" research shows that people receiving more than five communications per month are nearly twice as likely to feel harassed (86% vs 47% for those receiving four or fewer).

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.

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 suggest submitting your complaint in writing to ensure you have a clear record of what has been communicated, but you can also make the complaint over the phone if you'd prefer.

Step 2 – Business Confirms Receipt of Your Complaint

You will receive a response acknowledging your complaint along with an overview of the complaint process.

Step 3 – Business Responds to Your Complaint

After acknowledging the complaint, the business will generally need to respond within eight weeks. In this response, they should inform you whether your complaint has been upheld.

Alternatively, they may respond by requesting more time. If this occurs, they should explain why and tell you when they will be able to respond.

Step 4 – Final Response Letter

If the business finally responds and your complaint is not upheld, you should always request a final response letter.

Remember, whether or not you make a request, the business must reply with a final response within eight weeks of receiving the complaint, unless they have asked for more time to investigate.

Step 5 – How Do I Contact the UK Financial Ombudsman?

If you're unhappy with the outcome after going through the creditors' complaint process, you can escalate your complaint to the Financial Ombudsman. You must raise your complaint with the Financial Ombudsman within six months of receiving the creditor's final response letter; otherwise, you risk missing the chance to do so.

When you take your complaint to the Financial Ombudsman, you can do so over the phone or in writing. Once again, we always recommend communicating in writing so you have a record.

Key 2024/25 Statistics:

• The Financial Ombudsman upheld 34% of the complaints they resolved
• 72% of cases were resolved within six months
• The service is completely free for consumers

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 whether all other requirements concerning your complaint have also been met.

Step 7 – Financial Ombudsman Completes an Initial Assessment

Next, the Financial Ombudsman will conduct an Initial Assessment by evaluating the complaint from both your and the business's viewpoints. After this assessment, they will determine whether to rule in your favour or the business's.

This process could take up to 90 days... sometimes even longer, so be prepared to wait. Depending on the outcome of the Initial Assessment, you may be eligible for compensation if the Financial Ombudsman rules in your favour.

Step 8 – Request a Final Decision from the Financial Ombudsman

Now, if 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 deliver a final verdict.

Still not satisfied with the outcome? If you're 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 absolutely certain you will win and the potential financial gain outweighs the risk.

New Consumer Duty Requirements

Since July 2023, the Consumer Duty has enhanced protections for people dealing with debt collectors and banks. This means:

• Firms must test their communications to ensure they're not causing harm
• Vulnerable customers must be identified and supported appropriately
• There's a focus on good customer outcomes rather than just following processes
• Firms face robust enforcement action if they fail to meet these standards

Joint Regulator Action on Debt Collection

In March 2024, the FCA joined forces with Ofgem, Ofwat, and Ofcom to warn firms about poor debt collection practices. The key message: firms must stop using threatening tones and overwhelming vulnerable borrowers with excessive communications.

Mental Health and Financial Difficulty

If you're struggling with mental health problems, you have additional protections:

• 50% of people behind on payments have had suicidal thoughts due to cost-of-living pressures
• You may be eligible for a mental health crisis breathing space (up to treatment completion)
• Creditors must treat you more sensitively and reduce contact frequency
• You can request warm handovers to debt advice services

Breathing Space Scheme

Since May 2021, you may be eligible for:

• Standard breathing space: 60 days protection from creditor action
• Mental health crisis breathing space: Protection while receiving treatment
• During these periods, creditors cannot add interest or charges

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.